A lawsuit claiming unfair trade practices, market abuse and public deception has been filed against Voltic Ghana Limited, a producer of bottled mineral water and six other sachet water producing companies.
The suit, which is before the Kumasi High Court (Commercial Division), has the regulator – Food and Drugs Authority (FDA) – as a co-defendant, having been cited for negligence of duty.
The other defendants are Nivaash Manufacturing Limited, A.R. Zare (Offinso), Adat Water Limited, Straight Gate Ministries, Tasty Urban Water Limited and Right River Enterprise at Fumesua, near Ejisu in the Ashanti Region.
Century Investments Limited, plaintiff in the case, is praying the court to declare as unfair trade practice and consumer deception a franchised arrangement between the first defendant – Voltic Ghana Company – and the six others.
In its writ of summons, Century Investments Limited said Voltic has allowed the six sachet water producing companies to produce water under its trade/brand name, “Voltic Cool Pac,” and pass them off as mineral water under some sort of franchising arrangement.
It averred that the processes and standards of producing mineral water are different from those of sachet water production, and therefore constitutes a deception to give the impression that “Voltic Cool Pac” (sachet water) is mineral water.
To the plaintiff, Voltic is using its dominant position in the water producing business to impose unfair trading on sachet water manufacturers, thereby weakening competition.
In a writ of summons filed on September 18, 2017, the plaintiff said the defendants had colluded to deceive and mislead members of the unsuspecting public, whilst the regulator looks on, failing to act to protect consumers.
In a 19-point statement of claim, the plaintiff contended that Voltic Ghana Limited is licensed (License No. FDB/Wt08G-0028) to produce bottled Natural Mineral Water with brand name “Voltic.”
According to the plaintiff, Voltic Ghana Limited does not produce sachet water and therefore cannot give franchise to a company to make such product.
The plaintiff says the label on the actual product known as Cool Pac is different from the packaging label known as Voltic Cool Pac, arguing that this is affirming the deception the defendants are passing off to the consuming public.
Century Investments Limited said that the conduct of the defendants is inimical to commerce and constitute an unfair trade practice, which has ripple effect on the business of other water producers – including the plaintiff – and had made some of the companies to fold up unexpectedly.
The plaintiff pointed out that the development had consequently culminated in the reduction of members of the sachet water producers’ association from over 600 to about 120.
It averred that despite concerns raised by some consumers in the national tabloids, the regulator had also failed to investigate the matter and halt the perpetuation of the deception and the unfair trade practice.
The plaintiff is praying the court to stop the defendants from the practice.
Meanwhile, a number of sachet water producers have served notice to join the suit as plaintiffs to fight the supposed market abuse, which they say is killing their businesses.
According to the water producers, they find the action of Century Investments Limited a just cause to protect consumers and ensure sound trading.
From Ernest Kofi Adu, Kumasi