Home Business Nigerian Bottling Company Admits Error Over Zero-Sugar Mislabeling
Business

Nigerian Bottling Company Admits Error Over Zero-Sugar Mislabeling

Share
Share

The Nigerian Bottling Company Limited (NBC) has challenged a N190 million penalty imposed by the Federal Competition and Consumer Protection Commission (FCCPC) over alleged mislabeling and misleading trade descriptions on its product packaging. In its appeal to the Competition and Consumer Protection Tribunal, NBC admitted to a production error at one of its factories but firmly rejected claims of deliberate deception or unfair marketing practices.

The dispute revolves around the labeling of the zero-sugar variant of Limca Lime-Lemon, as well as issues concerning Coca-Cola’s “Original Taste” and “Less Sugar” variants. NBC, which owns the Coca-Cola bottling franchise in Nigeria, is contesting both the FCCPC’s investigation findings and the scope of the regulatory body’s authority.

In its amended appeal, NBC acknowledged that the mislabeling of Limca Lime-Lemon’s zero-sugar variant resulted from a production error at its Abuja factory, one of its eight production facilities in Nigeria. The company emphasized that the incident was accidental and not a calculated attempt to mislead consumers.

The company’s legal counsel, led by Senior Advocate of Nigeria Oluseye Opasanya, highlighted that the FCCPC had failed to investigate whether similar errors occurred at NBC’s other factories, including those in Maiduguri, Asejire, Ikeja, Owerri, Challawa, Port Harcourt, and Benin. “To establish intent, the FCCPC should have conducted a broader investigation to gather evidence across all production facilities,” Opasanya argued, adding that reliance on “speculative inferences” was insufficient.

NBC further underscored that it obtained prior authorization from the National Agency for Food and Drug Administration and Control (NAFDAC) to apply the same NAFDAC registration number to both the zero-sugar and 50:50 sugar variants of Limca Lime-Lemon. “Having obtained NAFDAC’s approval, the inscription of the same registration number on both products cannot be deemed misleading or fraudulent,” Opasanya maintained.

In its formal response, FCCPC’s counsel, Abimbola Ojenike, defended the Commission’s findings, arguing that NBC’s actions contravened multiple sections of the Federal Competition and Consumer Protection Act (FCCPA). Ojenike stated that NBC’s admission of producing identical packaging for Limca’s zero-sugar and 50:50 sugar variants provided clear evidence of a breach.

“The standard of differentiation required to prevent misleading or deceptive practices is assessed from the perspective of a reasonable consumer,” Ojenike argued, adding that NBC’s actions were inconsistent with the principles of fair competition and consumer protection.

The FCCPC also dismissed NBC’s claim that the Commission lacked the authority to impose penalties or request financial statements for fine calculations. According to Ojenike, the Commission’s investigation adhered to the principles of natural justice and fair hearing, and the evidence presented demonstrated clear violations.

NBC’s appeal further challenged the FCCPC’s directive that the company be placed under regulatory monitoring and supervision for 24 months at its own cost. Opasanya argued that this order exceeded the Commission’s statutory powers, as the investigation was limited to issues of labeling and advertising sufficiency.

The senior lawyer also contended that the FCCPC’s refusal to give due consideration to NBC’s submissions rendered its final and supplementary orders null and void. He urged the Tribunal to quash the N190 million penalty, as well as the FCCPC’s investigative report and supervisory directives.

Share

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Don't Miss

DR Congo Accuses Apple of Complicity in Conflict Minerals Trade

The Democratic Republic of Congo (DRC) has filed a criminal complaint against Apple in France and Belgium, alleging the tech giant’s complicity in...

Nigeria Cracks Down on Illegal Oil Trade

Nigeria’s military and security forces have struck a significant blow against the illegal oil trade, dismantling 56 illegal bunkering sites and recovering millions...

Related Articles

Netflix Announces Price Hike in Several Countries Following Record Subscriber Growth

Netflix has announced a price hike for its subscription services in the...

Ethiopia Launches Stock Exchange After Five Decades

Ethiopia has launched the Ethiopian Securities Exchange (ESX), marking a transformative moment...

Tanzania’s CNG Adoption: A Promising Shift Hindered by Infrastructure Shortfalls

Tanzania is witnessing a burgeoning shift towards Compressed Natural Gas (CNG) as...

Airtel Uganda and Buganda Kingdom Renew K2 Telecom Partnership

Airtel Uganda and the Buganda Kingdom have reaffirmed their strategic partnership with...