The Competition and Consumer Protection Tribunal in Abuja has rejected the terms of settlement between Nigerian Bottling Company Limited (NBC) and the Federal Competition and Consumer Protection Commission (FCCPC), while affirming the FCCPC’s N190 million penalty against NBC for misleading packaging on its Coca-Cola products.
The Tribunal’s ruling, delivered on Monday, came after NBC appealed the fine imposed by the FCCPC, citing multiple grounds for the request to overturn the penalty. The Tribunal’s three-member panel, led by Thomas Okosun, rejected NBC’s appeal and upheld the fine.
Background of the Legal Dispute
The FCCPC had accused NBC and Coca-Cola Nigeria Ltd of misleading consumers by describing the “Original Taste, Less Sugar” variant of Coca-Cola as identical to the “Original Taste” variant. NBC, which holds the Coca-Cola bottling franchise in Nigeria, approached the Tribunal, requesting the N190 million fine be set aside, claiming the mislabeling was accidental and due to a production error at one of its plants in Abuja.
NBC admitted to the error but argued it was unintentional. The company’s legal team, led by Oluseye Opasanya (SAN), contended that the FCCPC’s claims were baseless and beyond its statutory powers. NBC argued that in order to prove deliberate intent, the FCCPC should have examined all its factories, including those in Maiduguri, Asejire, Ikeja, Owerri, Challawa, Port Harcourt, and Benin, to determine whether similar mislabeling occurred at other locations.
FCCPC’s Stance
The FCCPC, represented by Abimbola Ojenike, maintained that the commission had the statutory authority to enforce orders regarding corporate misconduct. Ojenike argued that the evidence presented during the investigation demonstrated that both NBC and Coca-Cola Nigeria Ltd violated various sections of the Federal Competition and Consumer Protection Act (FCCPA).
Tribunal’s Judgment
During the judgment proceedings, NBC’s counsel, O. Ogunride, informed the Tribunal that a settlement had been reached with the FCCPC. However, the Tribunal rejected the settlement terms, ruling that it was submitted after judgment had been reserved and after both parties had delivered their final written addresses. The Tribunal described this attempt to present a settlement as an “attempt to arrest judgment”, which is not recognized by Nigerian law.
Chairman Okosun stated that the FCCPC’s acceptance of a settlement after the final written addresses undermined its role as a regulator and conflicted with its public mandate. He emphasized that the Tribunal could not endorse private compromises and must prioritize its constitutional duty to the public.
Furthermore, the Tribunal criticized the nature of the settlement, pointing out that the FCCPC had reversed its stance by claiming that “there is no penalty.” As a result, the Tribunal refused to adopt the settlement terms.
Final Verdict
The Tribunal ruled that NBC’s actions were misleading and in violation of Nigerian law. It affirmed that the N190 million fine was in accordance with the FCCPA and the 1999 Constitution (as amended). The Tribunal dismissed NBC’s appeal, citing it as lacking merit and upheld the fine.
The Tribunal further ordered NBC to pay the penalty within 60 days of the judgment.
What You Should Know
Reports indicate that Coca-Cola Nigeria Ltd (CCNL) and the FCCPC are also involved in a separate case before the Tribunal, challenging an additional N186,666,666.67 penalty related to the company’s labeling and marketing practices.
Earlier, on December 11, 2024, the FCCPC had agreed not to take any regulatory or enforcement action against NBC and CCNL while their respective appeals were pending.
