Abuja – The Competition and Consumer Protection Tribunal delivered a significant ruling Monday, rejecting a proposed settlement between the Nigerian Bottling Company (NBC) and the Federal Competition and Consumer Protection Commission (FCCPC). Crucially, the Tribunal upheld the Commission’s N190 million penalty the FCCPC fine – levied against the bottler over issues including misleading product packaging.
The decision came from the Tribunal’s three-member panel, led by Thomas Okosun, concluding NBC’s appeal against the FCCPC’s findings. The core dispute involved allegations that NBC and Coca-Cola Nigeria Ltd had misled consumers by inaccurately describing Coke variants like “Original Taste, Less Sugar.”
Last-Minute Settlement Attempt Fails
In a surprising turn during Monday’s proceedings, NBC’s legal team announced a settlement had been reached with the FCCPC. The Commission’s counsel confirmed discussions took place.
However, the Tribunal firmly rejected this eleventh-hour agreement. The panel ruled that attempting a settlement after judgment had already been reserved was legally improper, calling it an attempt to “arrest judgment,” a concept not recognized in Nigerian law. Chairman Okosun emphasized that the FCCPC accepting a settlement at this late stage undermined its authority as a regulator and conflicted with its public duty. “The Tribunal cannot indulge in private compromises; we must uphold our constitutional duty to the public,” Okosun stated.
Background of the NBC FCCPC Fine Dispute
This ruling stems from NBC’s challenge to the hefty N190 million fine. The FCCPC investigation found violations related to product labeling. NBC had previously admitted before the Tribunal that a mislabeling incident involving a zero-sugar Limca product occurred due to a production error at its Abuja plant, but maintained it was accidental, not deliberate.
NBC’s legal team, led by Oluseye Opasanya (SAN), had strongly contested the FCCPC’s broader findings about misleading descriptions on Coke products, arguing the Commission overstepped its authority. Conversely, the FCCPC maintained that evidence clearly showed violations of consumer protection laws.
Tribunal’s Final Verdict: Fine Stands
In its final judgment, the Tribunal validated the FCCPC’s five-year investigation process and its conclusions. It declared NBC’s actions concerning packaging descriptions were indeed misleading and unlawful under Nigerian consumer protection laws.
Specifically addressing the legality of the penalty, the Tribunal confirmed the N190 million FCCPC fine was consistent with the governing act and the Constitution. Consequently, NBC’s appeal was dismissed entirely. The company has been ordered to pay the N190 million penalty within 60 days. This case highlights ongoing scrutiny of corporate practices by consumer protection agencies, with a related case involving Coca-Cola Nigeria Limited also pending before the Tribunal.
Abdullah Korede
