Red Bull can use 'energy' on drink labels in India
What's the story
The Delhi High Court has overturned a Food Safety and Standards Authority of India (FSSAI) order directing Red Bull India to remove the term "energy" from its drinks. Justice Amit Mahajan ruled in favor of the company on grounds of natural justice. The court has allowed FSSAI to issue a fresh show-cause notice to Red Bull India, giving it an opportunity to present its case effectively.
Dispute
FSSAI's order to remove 'energy' from labels
The conflict originated from an order issued by FSSAI on July 1, asking Red Bull, Sting, Adrenaline Rush, Campa Gold Boost, Hell Energy and Monster to remove "energy" from their labels within 90 days.
The regulator had argued that it does not recognize "energy drink" as a category due to the absence of defined standards.
It also expressed concerns that claims like "vitalises body and mind" could mislead consumers.
Industry reaction
Proposed labeling as 'caffeinated beverages'
At a meeting with beverage companies on July 24, FSSAI proposed labeling products as "caffeinated beverages."
However, industry representatives opposed this suggestion, arguing that it was too broad and could cover everything from soft drinks to coffee. They feared this could confuse consumers.
The Indian Beverage Association has also sought a "consultative and risk-based approach before enforcement," asking for an opportunity for companies to present their positions before any enforcement action is taken.
Legal challenge
Red Bull challenges FSSAI's order
Red Bull has challenged a June 30 order by an FSSAI assistant director, asking it to stop using the term "Energy Drink" for its caffeinated beverages.
The company contended that the order was issued without a show-cause notice or an opportunity of hearing.
It also questioned the urgency behind FSSAI's action that warranted a decision without hearing the company.
Company stance
Urgency behind FSSAI's action questioned by Red Bull
In its petition, Red Bull argued that it had been selling its products in India with the "Energy Drink" descriptor since 2002.
The firm claimed that the June order was issued without a show-cause notice or an opportunity of hearing.
It also said that the subsequent communication led to enforcement action, including product seizures at several locations.