Dabur challenges FSSAI '100%' ban, alleges bias in Delhi HC; says ₹150 crore inventory at risk: Report

Dabur India has accused the Food Safety and Standards Authority of India (FSSAI) of acting in the interests of rival manufacturers by prohibiting the sale of its food products carrying "100%" claims, saying the order has put inventory worth around ₹150 crore at risk, according to a Moneycontrol report.

In a writ petition filed in the Delhi High Court on August 6, the FMCG major alleged that FSSAI issued the prohibitory order "in a mechanical manner" and without giving the company an opportunity to explain its position.

Dabur also questioned the regulator's reasoning that claims such as "100% pure" disparage other manufacturers. The company argued that such claims are "non-comparative and standalone" and do not refer to or undermine any rival product. "However, there is not an iota of reasoning as to how such non-comparative and standalone claims, without any reference to any other manufacture, undermines their product," the FMCCG major said in its petition, according to Moneycontrol.

"The expression '100%' is being used across the industry," Dabur said in its petition, adding that there was no reasoning to establish how such claims undermine products made by other manufacturers.

Dabur alleged that the order was "not in the public interest" and had instead been issued to "subserve the business interests of other manufacturers".

FSSAI order targets Dabur products

The dispute began after FSSAI prohibited the sale of Dabur food products carrying "100%" claims and directed the company to submit an action-taken report within 15 days.

The regulator said the claims were misleading and contravened the Food Safety and Standards (Advertising and Claims) Regulations, 2018.

The products mentioned in the FSSAI order included Dabur Honey, Apple Cider Vinegar, Virgin Coconut Oil, Sesame Oil, Cow Ghee, Coconut Water and Coconut Milk, among others.

Dabur, however, claimed that two products specifically named in the order -- DABUR HOMMADE Coconut Milk and DABUR Cold Pressed Sesame Oil -- never carried a "100%" claim on their labels.

The company said this showed that the order had been issued without proper application of mind.

"Therefore, this clearly indicates that the issuance of the Impugned Prohibitory Order is without proper application of mind and has been issued in a mechanical manner," Dabur said in its petition.

Dabur says FSSAI did not give it a hearing

Dabur has also challenged the manner in which the regulator issued the order. According to the company, FSSAI did not first issue a show-cause notice or improvement notice, nor did it provide Dabur an opportunity to explain its position before prohibiting the sale of the products.

The Delhi High Court subsequently stayed the FSSAI order until August 24. On Friday, Justice Amit Mahajan observed that the regulator should not have passed the prohibitory order without first giving Dabur an opportunity to be heard.

Appearing for FSSAI, counsel Ashish Dixit told the court that the issue relating to Dabur's "100%" claims was already pending before the Delhi High Court in a separate petition concerning its Real fruit juice products, in which interim protection had been granted.

₹150 crore inventory at risk

Dabur told the court that the FSSAI order had an immediate impact on its retail supply chain and put inventory worth around ₹150 crore at risk of destruction.

The company said FSSAI had also publicised the order on social media platforms, where it was viewed by the public. According to Dabur, channel partners were subsequently advised not to sell products carrying the "100%" claim.

The company cited an August 4 email from a quick-commerce platform, which told Dabur that it was immediately disabling listings of the affected products.

Dabur had already started changing labels

Dabur said it had already begun transitioning the labels and advertisements of the products identified by FSSAI to versions without the "100%" claim.

"Most product labels/advertisements/website as mentioned in aforesaid order, have either already transitioned or are in the process of transition," the company said in a statement on August 4.

The company maintained that the declarations on its product labels complied with the prevailing legal and regulatory framework and were consistent with long-standing industry practices.

"Dabur stands by the purity and quality of its products and has never made any misleading claims," the company said.

It added that it was responding to FSSAI and would continue to engage with the regulator to resolve the matter. Dabur is also seeking legal advice on its future course of action.

FSSAI steps up scrutiny of product claims

The dispute comes as FSSAI has intensified scrutiny of claims made by consumer brands, particularly those relating to purity, natural ingredients and other product attributes.

The regulator has moved against absolute and unverifiable marketing claims such as "100% pure", "100% natural" and "100% organic" on processed food products, arguing that such claims can mislead consumers.