Erisco Food’s 5b Naira Lawsuit Against Customer And Position Of Consumer Rights 

Erisco foods Nigeria limited is currenty fighting a hard battle to save its image and possibly cash out big from what looks like a brand threatening situation it has found itself. But for a company that operates within the ambit of Consumer Right, the company and its management may need to go extra-mile to sail through the ongoing controversy unscathed.

On Thursday, September 28, its Founder and President, Eric Umeofia was on a National television breathing fire and brimstone that the company would initiate a five hundred billion naira lawsuit against one of its customers, Mrs Chioma Egodi who made a review of the product she bought but failed to meet her satisfaction.

According to several reports that are trending online, the customer claimed to have bought Nagiko Tomato Mix, one of Erico food’s products and found it too sugary after using it for cooking. 

Mrs Egodi while making this known on her Facebook page on September 17 disclosed that she actually wanted to buy her usual brands, Gino or Sonia but they were out of stock and she had to settle for Nagiko Tomato Mix.

She wrote; “I went to buy tin tomatoes yesterday that I will use to make stew. I didn’t see Gino and Sonia.

“So, I decided to buy this one. When I opened it, I decided to taste it. Omo! Sugar was just too much. Ha, biko, let me know if you have used this tin tomato before because this is an Ike gwuru situation.”

The post within a few minutes generated a whirlwind of reactions with many Facebook users expressing their outrage on the development. Disturbed by the negative trend, Erisco Food swung into action and petitioned the Inspector General of Police, Kayode Egbetokun who ordered that the customer to be arrested and detained.

The Federal Competition and Consumer Protection Commission intervened and demanded her release with immediate effect. However, Mrs Egodi was not released until the company made her write an apology letter from the police custody. 

Rather than arresting the situation and douse the tension, the action of Erisco Food further fuelled the public outrage as many Nigerians called for a boycott of Nagiko Tomato Mix.

In the heat of the controversy, Mr Umeofia while granting an interview on Arise TV’s Global Business Report on the said Thursday morning, claimed that the company suspected Mrs Egodi was paid by some competitors to tarnish the reputation of the brand. He said she was not a genuine customer and could not provide any evidence to support her claim.

He confirmed that Mrs Egodi had written an apology letter to the company but had failed to post it on her Facebook page as agreed. He threatened to sue her for N5 billion if she did not comply with the company’s demand saying he has lost billions of naira because of the incident.

In other words, Mr. Umeofia has concluded an arrangement to rake a whooping sum of five billion naira from a customer who merely expressed her opinion on social media about the product she purchased from his company.

Umeofia, like a typical Nigerian business owner spoke passionately on Arise TV in defence of his company’s image with a view to putting the distorted public belief about his brand in a proper perspective. 

His threat to file a lawsuit against his customer who made a review of his product has widely been described as a beguiling graffiti on Consumer Right. It is a threat that has continued to jolt the consumer community like thunderstorms.

It is a fact that Mrs Egodi bought an item sold by Erisco foods. It is also a known fact that what she bought did not meet her satisfaction unlike the usual brands she normally purchases which consequently informed her decision to make her feelings known on Facebook. What remains contentious however is her right under the consumer protection right to express her mind.

According to Consumer Review Fairness Act (CRFA), consumers have every right  to share their honest opinions about a business’ products, services, or conduct, in any forum, including social media.

The Consumer Review Fairness Act was passed in response to reports that some businesses try to prevent people from giving honest reviews about products or services they received. Some companies put contract provisions in place, including in their online terms and conditions, that allowed them to sue or penalize consumers for posting negative reviews. This appears to have been the angle from which Erisco Food is firing its shots against Mrs Egodi.

But looking at the key provision of this Act, could it be established that Erisco Food had violated the Right of its customer? 

Interestingly, latest development showed that Mrs. Egodi was actually made to write the apology letter under duress at the police station. This was disclosed by her lawyer, Inihebe Effiong on Arise TV Friday, September 29.

According to the human rights lawyer, he began representing Egodi after her release from police custody. He dismissed Erisco’s repeated exhibition of the letter, affirming it was involuntary. Effiong claims Egodi was threatened with further detention if she refused to sign it.

He reiterated that his client had simply commented that the tomato mix contained excessive sugar, not damaging the product itself.

Effiong maintains Egodi was under extreme pressure when writing the apology later brandished by Erisco, rather than it being voluntary. His statements cast doubt on the letter’s legitimacy amidst public outcry over Egodi’s arrest. 

Considering the position of Consumer Fairness Act and submission of the human right lawyer, it is save to speculate that Erisco Foods management may have committed an obvious strategic and marketing summersult with its decision to come on National TV and threaten to file a five hundred bilion naira lawsuit against its customer for making a review of its product.

Make no mistake about it, Erisco Food is arguably one of the most dependable food products manufacturing companies in Nigeria with burstling branches across the African continent. However, the company must pause and ponder over the latest controversy trailing its action which has so far triggered public outrage and protest on social media to boycot the product.

Except the situation is properly managed within the ambit of consumer right, Erisco Foods may have to face the consequence of the controversy on the marketability of Nagiko Tomato Mix and other products from its stable.