Misleading Labels: Court Upholds N186 Million Penalty Against Coca-Cola in Landmark Ruling

In a significant victory for consumer protection and regulatory enforcement, the Federal High Court in Abuja has upheld a N186 million fine imposed on Coca-Cola Nigeria Limited over misleading labeling practices. The judgment reinforces the authority of the Federal Competition and Consumer Protection Commission (FCCPC) and sends a strong message to manufacturers about transparency and accountability.

The case, which has drawn national attention, stemmed from an investigation by the FCCPC into the labeling and marketing of certain Coca-Cola products. According to the commission, Coca-Cola was found to have applied labels that failed to accurately represent the contents of some of its beverages — a violation of Nigeria’s consumer protection laws.

In his ruling, Justice Justice Nkeonye Maha affirmed the FCCPC’s statutory powers to impose administrative penalties on companies found guilty of breaching consumer trust and safety regulations. The judge emphasized that companies operating in Nigeria must comply with labeling standards that ensure consumers are fully informed about the products they purchase.

The N186 million fine, originally imposed by the FCCPC in 2022, had been challenged by Coca-Cola, which argued that the commission exceeded its powers. However, the court dismissed this argument, maintaining that the penalty was lawful, proportionate, and within the FCCPC’s jurisdiction.

Babatunde Irukera, Chief Executive Officer of the FCCPC at the time the case was initiated, praised the judgment as a victory for consumers and a milestone in the enforcement of fair business practices. “This ruling reaffirms that no company, no matter how big, is above the law when it comes to protecting the rights of Nigerian consumers,” he said.

Consumer advocacy groups have also hailed the decision, calling it a precedent that will encourage better compliance and corporate responsibility across the fast-moving consumer goods (FMCG) sector.

Coca-Cola Nigeria is yet to issue an official statement in response to the ruling at the time of publication.

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