Dabur accuses FSSAI of discrimination:Co says govt order put ₹150 crore worth of its goods in crisis

FMCG company Dabur has knocked on the doors of the Delhi High Court against the Food Safety and Standards Authority of India. The company has accused FSSAI of discrimination. Additionally, the company has also accused FSSAI of promoting the commercial interests of other manufacturers among competitors. Dabur claims that the order to immediately ban the use of 100% claims on products put its inventory worth ₹150 crore at risk of being destroyed. In its petition filed in the Delhi High Court on August 6, Dabur has called FSSAI’s order thoughtless and unilateral. While hearing the petition, the Delhi High Court granted relief to the company by staying FSSAI’s order till August 24. The court acknowledged that the company should have been given an opportunity to present its side before issuing any such directive. What is the entire controversy: Ban on 100% claims and FSSAI’s action Food regulator FSSAI has deemed claims like 100% Pure, 100% Natural or 100% Organic on advertisements and labels of processed food products as misleading. According to FSSAI, such claims violate the Food Safety and Standards (Advertising and Claims) Regulations, 2018. FSSAI had immediately banned the sale of products with 100% claims and demanded an Action Taken Report (ATR) from Dabur within 15 days. FSSAI argues that the use of such words affects the image of other companies’ products. Dabur’s Argument: FSSAI Promoting Business Interests of Other Manufacturers Dabur has rejected FSSAI’s allegations in its writ petition. The company states that the 100% claim is used independently without any reference to other manufacturers. This is a term commonly used across the entire industry. According to the company, it is clear that this ban has not been issued in public interest, but rather to serve the commercial interests of other manufacturers. Dabur has claimed that FSSAI imposed the ban directly without issuing any show cause notice or opportunity for correction. ₹150 crore stock at stake; 11 flagship products affected FSSAI’s action has directly impacted 11 of Dabur’s major flagship products. These include big brands like Dabur Honey, Dabur Virgin Coconut Oil, and Real Active Coconut Water. Dabur alleges that FSSAI issued the order without examining the labels. According to the company, Dabur Homemade Coconut Milk and Dabur Cold Pressed Sesame Oil labels never claimed 100% in the first place, yet they were included in the ban list. This has put the company’s ?150 crore inventory on the verge of being wasted. Impact on Quick-Commerce and Hotel Supply Chain After FSSAI’s order was made public on social media, Dabur’s retail supply chain was suddenly affected. Several retail and online channels were advised not to sell the company’s products with 100% claims. On August 4, Zomato’s quick-commerce platform Blinkit issued an ultimatum to Dabur and immediately disabled the listing of its products. Blinkit clarified in an email that it will not be responsible for any legal or financial liability arising from this matter. Meanwhile, hospitality brand Hilton Hotels has also proposed to remove the affected products from its supply until the dispute is resolved. Company was already making changes to labels Dabur clarified the situation by stating that it had already started the process of removing the 100% claim from the labels of products mentioned in FSSAI’s letter. According to the company’s official statement issued last week, the labels, advertisements and website references of most products mentioned in the order have been changed to new labels without the 100% claim or are in the final process of being changed. FSSAI’s major crackdown and the way forward FSSAI has been taking strict action for some days on misleading advertisements by FMCG companies, use of artificial ingredients and hygiene-related matters. The regulator has banned marketing terms used on processed foods without any solid verification. Currently, FSSAI has not issued any official response or reaction immediately on this legal matter and Dabur’s allegations. After the relief given by Delhi High Court till 24th August, all eyes are now on the next court hearing. Knowledge Part: Know what FSSAI’s ‘Claims Regulation’ says? Show-Cause Notice Mandatory: According to food safety rules, if FSSAI has objections to any product’s advertisement or claim, then first a notice must be given to the Food Business Operator (FBO) to provide clarification. Single vs Multi-Ingredient: FSSAI believes that writing ‘100% Pure’ on processed or multi-ingredient food is wrong, while companies argue that this claim is justified for natural products like honey or pure coconut water.