Coca-Cola Nigeria Challenges N186 Million Penalty, Cites 15 Legal Grounds in Appeal

Coca-Cola Nigeria Limited (CCNL) has formally appealed the N186 million penalty imposed on it by the Federal Competition and Consumer Protection Commission (FCCPC), asserting that the fine, related to its marketing and labelling practices, is unjustifiable.

In a detailed notice filed with the Competition and Consumer Protection Tribunal, the company outlined 15 legal grounds on which it seeks to have the penalty quashed.

At the heart of the dispute are allegations that Coca-Cola Nigeria misled consumers by falsely marketing the “Original Taste” and “Less Sugar” variants of its iconic Coca-Cola product as being the same.

The FCCPC had accused the company of using deceptive trade descriptions in the labelling and marketing of the two variants, arguing that this could mislead consumers about the differences in the products’ formulation.

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The regulatory body further claimed that, despite its intervention, Coca-Cola failed to sufficiently correct the misleading labels, suggesting that the company’s actions were intentional.

As a result, it imposed a penalty of N186,666,666.67 on the company, with the order demanding payment by September 6, 2024.

However, Coca-Cola is adamant that no such deception occurred.

In its appeal, the company, represented by legal luminary Professor Gbolahan Elias SAN, argues that the FCCPC overreached by assuming multiple roles in the process – as investigator, prosecutor, and judge – thus violating the constitutional right to a fair hearing.

One of the key points raised in the appeal is that Coca-Cola Nigeria’s labelling of the “Less Sugar” variant, which had already been approved by the National Agency for Food and Drug Administration and Control (NAFDAC), was in full compliance with Nigerian regulatory standards.

The company further contends that no complaints had been made by consumers, and it had taken steps to ensure clarity in differentiating the two variants after the initial allegations were raised.

“There is no false representation by Coca-Cola Nigeria regarding the nature, content, or taste of any of its products,” the company states in its appeal.

The labelling was transparent, accurate, and adhered to global standards, with ingredient listings and product descriptions clearly displayed.”

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The company also disputes the FCCPC’s assertion that its pricing model was indicative of anti-competitive conduct, pointing out that no evidence had been provided to support claims of market dominance abuse.

Coca-Cola Nigeria further argues that the penalty, amounting to N186,666,666.67, is excessive and unwarranted.

The company asserts that the requirement to submit a range of documents to the FCCPC, such as its audited financial statements, is an abuse of power, as no law mandates the commission to access such sensitive data.

The legal team emphasized that the penalty is unjustifiable, stating, “The fine is outrageous and disproportionate to the alleged violations.”