Coca-Cola Nigeria Limited has mounted a legal challenge against a N186,666,666.67 fine imposed by the Federal Competition and Consumer Protection Commission (FCCPC), citing a detailed 15-point argument contesting the regulatory penalty.
The dispute stems from allegations of misleading marketing practices involving Coca-Cola’s Original Taste and Less Sugar drink variants. The FCCPC accused Coca-Cola and its sister company, Nigerian Bottling Company, of deceiving consumers by presenting the two drink variants as nearly identical in formulation.
In a notice of appeal filed on September 5, 2024, the company’s legal team, led by Professor Gbolahan Elias SAN, challenged the commission’s ruling. The appeal argues that the FCCPC overstepped its regulatory boundaries in imposing the fine.
Key arguments in Coca-Cola’s appeal include claims of procedural misconduct, including allegations that the FCCPC acted simultaneously as complainant, investigator, and judge. The company contends this approach violated its right to a fair hearing.
The beverage manufacturer staunchly defended its marketing practices, pointing to its compliance with NAFDAC standards and efforts to differentiate product variants. Coca-Cola denies making any misleading representations about its products’ taste, content, or formulation.
Among the 15 grounds of appeal, the company challenges the FCCPC’s jurisdiction, questions the absence of consumer complaints, and argues that the fine is “outrageous and unjustifiable.” The appeal meticulously examines the commission’s investigative process and legal reasoning.
In response to the appeal, the FCCPC has agreed to suspend enforcement actions pending tribunal review. The Competition and Consumer Protection Tribunal has scheduled a hearing for February 4, 2025, to examine the dispute.
The case potentially sets a precedent for regulatory oversight of marketing practices in Nigeria’s competitive beverage market. Observers note that the outcome could have broader implications for consumer protection standards and corporate marketing strategies across various industries.
The fine originally required Coca-Cola to remit payment by September 6, 2024, a deadline the company has now formally contested through its legal challenge.
