Coca-Cola Faces Regulatory Heat for Misleading Consumers with Artificial Sweetener Switch

The Federal Competition and Consumer Protection Commission (FCCPC) has officially accused Coca-Cola Nigeria Ltd and the Nigerian Bottling Company (NBC) of engaging in deceptive marketing and unfair trade practices by swapping sugar for artificial sweeteners in some of their popular products, including “Original Taste” and “Less Sugar” variants.

This announcement was made via a press statement released by the FCCPC’s management, which was also shared on the commission’s official social media platform.

Key Allegations Against Coca-Cola

According to the FCCPC, Coca-Cola Nigeria and NBC violated Section 116 of the FCCPC Act as well as Section 124 1(a) of the Commission’s Establishment Act. The core of the issue lies in how the companies marketed their products. They misled consumers by suggesting that the “Coca-Cola Original Taste, Less Sugar” variant was identical in formulation to the regular “Coca-Cola Original Taste,” when, in fact, artificial sweeteners were used in place of sugar.

The FCCPC emphasized that this misrepresentation is a significant abuse of market dominance, contravening the FCCPA and Administrative Penalties Regulation 2020 (APR). The Commission has reserved further regulatory actions and penalties, which are expected to be imposed shortly.

Final Order Issued

The FCCPC has issued a Final Order to Coca-Cola and NBC, effective from July 29, 2024. The order outlines several findings:

• Misleading Trade Descriptions: The companies were found guilty under Section 116 FCCPA for misleading consumers into believing that “Coca-Cola Original Taste” and “Coca-Cola Original Taste, Less Sugar” were not materially different.
• Unfair Marketing Tactics: Violating Section 124(1)(a) of the FCCPA, Coca-Cola Nigeria marketed “Coca-Cola Original Taste, Less Sugar” in packaging that was initially indistinguishable from the “Coca-Cola Original Taste” variant. This lack of clear differentiation also breached Sections 123(1)(a), (b), and (c) of the FCCPA.
• Deliberate Misrepresentation: Even after regulatory intervention, Coca-Cola and NBC continued to mislead the public. Their actions demonstrated an intentional business strategy to misrepresent “Coca-Cola Original Taste, Less Sugar” as the original variant.

Moreover, the FCCPC found that NBC used identical packaging for both its “Zero Sugar” and “50:50” variant of Limca Lime-Lemon flavored drinks. This practice misled consumers, violating Sections 17(g), 116(1) & (2), and 123 of the FCCPA, along with Section 2(a) of the National Agency for Food and Drug Administration and Control Act 2004. The Commission found that NBC applied deceptive trade descriptions to these two variants, further infringing Section 116 (3) of the FCCPA.

Investigation Timeline

The FCCPC clarified that its investigation began in 2019 when Coca-Cola shifted from using regular sugar to non-nutritive sweeteners in its Coke brand. Allegations suggest that similar deceptive practices occurred with the Sprite and Fanta brands, violating FCCPA regulations regarding misleading trade descriptions and abuse of dominant market positions in certain regions.

The outcome of this investigation may set a significant precedent for regulatory oversight in the Nigerian beverage industry, highlighting the importance of transparency and honesty in product marketing. As consumers become more aware of these practices, the pressure mounts on companies to ensure accurate product representation.