Consumer Protection Authority fines United Biscuits ₹1 lakh over McVitie’s ‘Wholewheat’ claim

The Central Consumer Protection Authority (CCPA) has levied a ₹1 lakh penalty on United Biscuits Private Limited, formerly known as Pladis India Private Limited, for selling McVitie’s Marie Biscuits with a prominent “Wholewheat” claim despite the product containing just 19.5% whole wheat flour, Bar and Bench reported.

The consumer regulator found that the prominent display of the term “Wholewheat” on the biscuit packaging could give consumers a misleading impression about the product’s actual composition. According to the findings, refined wheat flour, or maida, accounted for 52% of the ingredients, while whole wheat flour made up only 19.5%.

The order was issued on August 28 by CCPA Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra.

CCPA orders company to change packaging

Along with the monetary penalty, the CCPA directed United Biscuits to immediately stop the allegedly misleading advertisement across print, electronic and social media platforms. The company was also instructed to alter all new packaging and remove the claim that the regulator considered false and misleading.

The proceedings began after the CCPA took suo motu cognisance of an online article that drew attention to the way McVitie’s Wholewheat Marie Biscuits were being promoted.

A preliminary examination found that the front of the packaging prominently described the biscuits as “Whole Wheat”, while the ingredient list stated that whole wheat flour constituted only 19.5% of the product.

The issue was subsequently referred to the Authority’s investigation wing for further examination.

Regulator rejects trademark defence

The investigation found that the use of “Wholewheat”, along with wheat imagery on the principal panel of the package, could lead consumers to believe that whole-wheat flour was the primary ingredient in the biscuits.

United Biscuits defended the product by stating that “McVitie’s Wholewheat Marie” was a registered trademark. The company argued that the term “Wholewheat” was not meant to indicate the actual composition of the biscuit.

The company also referred to a disclaimer on the packaging stating that the trademark was not intended to describe the product's true nature.

The CCPA, however, rejected the argument, observing that a disclaimer cannot override or neutralise a misleading impression created by a prominent representation on the package.

The Authority said consumers could not reasonably be expected to disregard the principal claim displayed on the front of the pack and instead rely on comparatively less prominent qualifying information.

Company offered to revise packaging

During the proceedings, United Biscuits said it was prepared to revise its packaging and remove the word “Wholewheat” from the registered trademark shown on the product.

The company requested nine months to implement the changes, citing the need to use up existing packaging material.

The CCPA, however, directed that all fresh packaging must be modified from the date of its order.

In addition to the ₹1 lakh penalty for misleading advertising and unfair trade practice, the Authority instructed United Biscuits to submit a compliance report within 15 days.