Attempts to halt judgment through post-hearing settlement declared illegal
The Competition and Consumer Protection Tribunal (CCPT) has upheld a N190 million fine imposed on the Nigerian Bottling Company Limited (NBC) by the Federal Competition and Consumer Protection Commission (FCCPC), dismissing the company’s appeal and rejecting a last-minute attempt to settle the dispute out of court.
In a ruling delivered on Monday, the Tribunal, led by Chairman Thomas Okosun, dismissed NBC’s appeal and affirmed the FCCPC’s findings that the company engaged in misleading packaging practices in relation to its Coca-Cola products. The Tribunal also rebuked both NBC and the FCCPC for presenting a negotiated settlement after the court had reserved judgment, describing the move as legally improper and undermining the role of the Commission as a public regulator.
Background: Dispute Over Product Labeling
The case stems from an investigation by the FCCPC into the labeling and marketing strategies employed by NBC and Coca-Cola Nigeria Ltd (CCNL). The Commission alleged that consumers were misled by the branding of the “Original Taste, Less Sugar” variant of Coca-Cola, which was marketed as identical to the “Original Taste” version, despite differences in formulation.
NBC admitted to a labeling error concerning the zero-sugar variant of Limca Lime-Lemon, citing a production mishap at its Abuja plant. However, the company argued that the mislabeling was unintentional and did not occur in its other facilities. In its appeal, NBC’s legal team, led by Senior Advocate of Nigeria Oluseye Opasanya, contended that the FCCPC overstepped its authority and failed to establish intent or widespread wrongdoing.
Legal Arguments and Tribunal’s Position
NBC asked the Tribunal to set aside the N190 million administrative penalty on the grounds that the Commission’s conclusions lacked sufficient evidence. The company further argued that the FCCPC should have verified whether the mislabeling extended to NBC’s other production plants before attributing corporate intent.
The FCCPC, represented by counsel Abimbola Ojenike, countered that the Commission acted within its statutory mandate and that the evidence obtained showed violations of multiple provisions under the Federal Competition and Consumer Protection Act (FCCPA). Ojenike urged the Tribunal to uphold the fine and reaffirm the Commission’s regulatory powers.
The Tribunal agreed with the FCCPC’s position. It held that NBC’s marketing practices were misleading and that the N190 million fine was lawful, proportionate, and in alignment with both the FCCPA and the Nigerian Constitution. The Tribunal further emphasized the FCCPC’s authority to investigate and penalize breaches of consumer protection laws.
Rejected Settlement and Its Implications
In a surprising twist during the final judgment proceedings, NBC’s counsel informed the Tribunal that a settlement had been reached with the FCCPC and sought its adoption as a consent judgment. The FCCPC’s counsel confirmed the existence of the settlement but acknowledged that it was reached after the parties had concluded their legal arguments.
The Tribunal rejected the proposed settlement, stating that such post-hearing agreements are tantamount to attempting to "arrest judgment"—a legal maneuver not recognized under Nigerian law. Chairman Okosun underscored that such settlements, especially after final submissions, compromise the independence of judicial proceedings and diminish the credibility of regulatory oversight.
“The Tribunal cannot indulge in private compromises,” Okosun said, adding that it had a constitutional obligation to deliver impartial decisions based on the rule of law.
Final Ruling and Next Steps
In its final verdict, the Tribunal dismissed NBC’s appeal for lacking merit and reaffirmed the N190 million penalty. NBC was ordered to remit the sum within 60 days.
The ruling also sheds light on a related pending case involving Coca-Cola Nigeria Ltd and the FCCPC, which concerns another penalty of N186.6 million for similar labeling practices. The Tribunal is expected to deliver a separate judgment in that matter.
Meanwhile, the FCCPC had earlier agreed not to take enforcement action against NBC and Coca-Cola Nigeria Ltd until their respective appeals are concluded—a concession that may now be reconsidered in light of the Tribunal’s latest ruling.