Tribunal Dismisses Coca-Cola Settlement, Upholds N186 Million Penalty For Deceptive Labeling

The ruling, delivered on Wednesday, April 30, 2025, by a three-member panel led by Thomas Okosu, marks a significant setback for CCNL in its appeal against the FCCPC’s sanctions over misleading labeling of its “Original Taste” and “Less Sugar” products.

The FCCPC had accused CCNL and its sister company, Nigerian Bottling Company (NBC), of violating Section 116(3) of the Federal Competition and Consumer Protection Act (FCCPA) 2018 by using deceptive trade descriptions and unfair marketing tactics. The Commission’s investigation, spanning five years, found that CCNL misled consumers regarding the labeling of its “Original Taste” and “Less Sugar” variants. In a supplementary order issued in July 2024, the FCCPC directed CCNL to pay a N186,666,666.67 penalty by September 6, 2024, for the infractions.

CCNL appealed the penalty, arguing through its legal team, led by Professor Gbolahan Elias (SAN), that the FCCPC’s orders lacked jurisdiction, violated fair hearing principles, and ignored the approval of its products by the National Agency for Food and Drug Administration and Control (NAFDAC). The FCCPC, represented by Abimbola Ojenike, countered that CCNL had ample opportunities for a fair hearing, including participation in investigations, submission of written statements, and attendance at consultative meetings.

During the resumed hearing on April 30, 2025, CCNL’s counsel, G. Abubakar, informed the tribunal of ongoing settlement discussions with the FCCPC following the March 18, 2025, hearing. He presented a consent order and terms of settlement, both dated April 24, 2025, and filed with the tribunal on April 29, 2025, pursuant to Section 149 of the FCCPA. Abubakar apologized for the late submission, noting alignment with legal provisions.

FCCPC counsel Ojenike confirmed receipt of the documents and a communication from the Commission’s Director of Legal Services, A.W. Achimugu, endorsing the consent order. However, the tribunal rejected the settlement, with Justice Okosu describing the terms as “not supported by law” and contrary to public interest.

Okosu criticized the settlement as an attempt to “arrest” the tribunal’s judgment, particularly in light of a recent N190 million penalty imposed on NBC on April 28, 2025, for similar mislabeling violations. He questioned the FCCPC’s decision to withdraw the N186 million penalty and replace it with a N198 million reimbursement without justification, calling the parties’ filings “stubborn” and “troubling.” The tribunal also noted that the settlement referenced an unrelated matter and included irrelevant arguments.

In its final ruling, the tribunal upheld the FCCPC’s findings and the N186 million penalty, dismissing CCNL’s appeal for lacking merit. Key points from the judgment include:

The ruling strengthens the FCCPC’s mandate to protect consumers and enforce compliance with fair trade practices, sending a clear message to corporations about accountability.