The Competition and Consumer Protection Tribunal (CCPT) in Abuja has rejected the settlement terms between Nigerian Bottling Company (NBC) and the Federal Competition and Consumer Protection Commission (FCCPC). The Tribunal also upheld the N190 million penalty imposed on NBC for misleading labeling of its Coca-Cola products.
In a ruling delivered by the Tribunal’s three-member panel, led by Thomas Okosun, the court dismissed NBC’s appeal to overturn the fine. The case stemmed from allegations that NBC misled consumers with inaccurate descriptions of its “Original Taste, Less Sugar” Coca-Cola variant.
Misleading Packaging of Coke Products
The FCCPC had accused NBC and Coca-Cola Nigeria Ltd (CNL) of misleading consumers by claiming that the “Original Taste, Less Sugar” variant was the same as the standard “Original Taste” Coke. NBC later admitted that a mislabeling issue occurred at its Abuja factory, attributing it to a production error. The company, however, argued that the error was unintentional.
NBC’s legal team contended that the FCCPC overstepped its statutory powers and failed to gather sufficient evidence across all of its factories to prove intentional mislabeling. The company requested that the penalty be dismissed, citing lack of evidence and a settlement reached with the FCCPC.
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Tribunal Rejects Settlement, Affirms Fine
Despite NBC’s claim of a settlement with the FCCPC, the Tribunal ruled that the timing of the settlement filing was improper. The court stated that attempts to submit a settlement after the judgment had been reserved was a violation of Nigerian law. The Tribunal emphasized that such actions could not be accepted, particularly when they conflicted with the FCCPC’s regulatory duties.
The Tribunal further criticized the reversal of the FCCPC’s position during the settlement discussions, stating that it undermined the public interest role of the regulatory body.
In its final ruling, the Tribunal affirmed the FCCPC’s N190 million penalty, stating that NBC’s actions were in violation of the Federal Competition and Consumer Protection Act (FCCPA). The company has been ordered to pay the fine within 60 days of the judgment.
The Tribunal’s decision underscores the importance of corporate transparency and adherence to consumer protection laws in Nigeria.
