Relief for Dabur! HC stays FSSAI order against '100%' labels
What's the story
The Delhi High Court has stayed an order by the Food Safety and Standards Authority of India (FSSAI) that banned Dabur India from selling several food products. The FSSAI order had targeted products with labels such as "100% Pure," "100% Natural," and "100% Organic." Justice Amit Mahajan, while hearing Dabur's petition against the August 3 FSSAI order, issued a notice to the Centre, FSSAI, and other respondents.
Information
FSSAI's order targeted products with '100%' claims
The FSSAI had ordered Dabur to stop selling certain products with "100%" claims, arguing that such declarations were vague, unverifiable, and could mislead consumers. The products affected by the order included Dabur Honey, Dabur Honey Squeezy, and Dabur Virgin Coconut Oil among others.
Legal dispute
Order issued without hearing Dabur: Petition
Dabur has challenged the FSSAI order on grounds that it was issued without a prior show-cause or improvement notice and without giving the company an opportunity to be heard.
The company argued that under the Food Safety and Standards (Advertising and Claims) Regulations, 2018, a regulator must seek clarification from a food business operator and consider its response before taking such action.
Commercial consequences
Order forces Dabur to recall, repackage products already in market
Dabur has also raised concerns that the FSSAI order effectively forces it to recall or repackage products already in the market.
The company said the regulator publicized this order on social media, leading some channel partners and e-commerce platforms to stop selling these products.
This move has caused immediate commercial consequences for Dabur.
Regulatory challenge
Dabur questions legal basis of prohibitory order
Dabur has also questioned the legal basis of the prohibitory order, arguing that Section 18 of the Food Safety and Standards Act, 2006 only lays down guiding principles and doesn't empower a Designated Officer to prohibit product sales.
The company contended that the FSSAI order is unreasoned and doesn't explain how claims like "100% Pure" or "100% Natural" violate applicable regulations.
Labeling dispute
Dispute limited to labeling and advertising: Dabur
Dabur has argued that the use of such expressions can't be considered misleading for single-ingredient products or those made entirely from natural ingredients.
The company highlighted that the FSSAI hasn't alleged that these products are adulterated, unsafe, spurious, or sub-standard.
It contended that the dispute is limited to their labeling and advertising.