In a significant legal victory for the FMCG major Dabur India, the Delhi High Court has granted an interim stay on an order issued by the Food Safety and Standards Authority of India (FSSAI). The regulatory order had previously directed the company to halt the sale of several food products that carried labels such as 100 percent pure, 100 percent natural, and 100 percent organic. This judicial intervention comes as a major relief for the company, which had challenged the regulator's directive on multiple legal and procedural grounds.
The Court Proceedings and Notice
The matter was heard by Justice Amit Mahajan, who took note of the arguments presented by Dabur India, while while staying the FSSAI order dated August 3, the court also issued formal notices to the Central Government, the FSSAI, and other relevant parties involved in the case. The FSSAI had earlier instructed Dabur to immediately cease the sales of products making 100 percent claims, arguing that such assertions are vague, can't be objectively verified, and have the potential to mislead consumers. However, the court's stay order effectively allows Dabur to continue its operations regarding these products until further deliberation.
Products Under the Regulatory Scanner
The FSSAI order had targeted a wide range of popular Dabur products. The list of affected items included Dabur Honey, Dabur Honey Squeezy, Dabur Sundarban Honey, Dabur Himalayan Apple Cider Vinegar, Dabur Virgin Coconut Oil, Dabur Cow Ghee, Real Activ 100 percent Tender Coconut Water, Dabur Hommade Coconut Milk, and Dabur Organic Honey. The regulator's primary contention was that the use of the 100 percent prefix was misleading to the public. Dabur, in its petition, argued that the regulator took this drastic step without following the due process of law.
Dabur's Legal Arguments and Procedural Lapses
Dabur India challenged the order on the grounds that the regulator failed to issue any show-cause notice or improvement notice before imposing the ban. The company emphasized that under the Food Safety and Standards (Advertising and Claims) Regulations, 2018, it's mandatory for the regulator to seek an explanation from the food business operator and consider their response before taking such restrictive actions. Dabur contended that the sudden order meant they would have to either recall products already in the market or undergo an expensive and time-consuming repackaging process. Also, the company pointed out that the FSSAI had publicized the order on social media and advised channel partners and online retailers against selling the products, leading to immediate and significant commercial losses.
Challenge to the Legal Basis
The company also questioned the legal authority under which the order was passed. Dabur argued that Section 18 of the Food Safety and Standards Act, 2006, only sets out guiding principles and doesn't grant a designated officer the independent power to stop the sale of products in this manner. The petition stated that the FSSAI order lacked solid reasoning and failed to explain exactly how the claims of 100 percent pure or 100 percent natural violated existing regulations. According to Dabur, the order was based on a mere assumption that the claims might look misleading, without any concrete findings or evidence to support such a conclusion.
No Allegations of Adulteration or Poor Quality
A crucial point raised by the FMCG giant was that the FSSAI didn't level any allegations regarding the quality of the products. There were no charges of adulteration, unsafe ingredients, or the products being counterfeit or of substandard quality. Dabur maintained that the dispute was strictly limited to labeling and advertising terminology. The company argued that the use of such terms can't be considered misleading, especially for products made from a single ingredient or entirely natural components. 25 percent, at 2:10 PM on Friday.