Why Dabur has accused FSSAI of helping its rivals
What's the story
Dabur has accused the Food Safety and Standards Authority of India (FSSAI) of favoring certain manufacturers with its ban on "100%" claims. The company said the regulator's order has put its ₹150 crore inventory at risk. In a writ petition filed in the Delhi High Court, Dabur argued that terms like "100% pure" do not disparage other products.
Legal claim
Products undermined by FSSAI order
Dabur's petition stated that the FSSAI order undermines its products, such as Dabur Honey and Real Activ Coconut Water.
The company alleged that the order was issued without proper reasoning or consideration of their labels.
They contended this action is not in the public interest but serves other manufacturers' business interests.
Inventory risk
Dabur alleges 'mechanical' issuance of order
Dabur said the FSSAI's action has put its inventory worth ₹150 crore at risk of destruction.
The company alleged that the order was issued in a "mechanical manner" without proper application of mind.
They pointed out that products like Dabur Hommade Coconut Milk and Dabur Cold Pressed Sesame Oil never bore the claim of "100%," as alleged by FSSAI.
Transition efforts
Transitioning product labels and retail supply chain impact
Dabur has started transitioning product labels to remove the "100%" claim. The company also highlighted an immediate impact on its retail supply chain after the FSSAI order was announced. Blinkit and Hilton Hotels have responded negatively to this situation.
Court stay
Delhi HC stays FSSAI order
Last week, the Delhi High Court stayed the FSSAI order till August 24. The court observed that Dabur should have been heard before such a direction was issued.
Separately, the company has also argued that other manufacturers in India continue to use "100%" claims without any action from the regulator.