Dabur to continue selling ghee, coconut oil as Delhi HC stays FSSAI order
The company claimed that the FSSAI’s actions would cause the company to withdraw products worth ₹150 crore
The Delhi High Court has granted interim relief to Dabur, staying an order from the Food Safety and Standards Authority of India (FSSAI) that banned the company from selling food products with "100%" organic and purity claims. Dabur had approached the court, arguing that they were unfairly targeted by the FSSAI's social media-publicized ban on products like honey, apple cider vinegar, and ghee, which carried labels such as "100% Natural." The company also claimed the FSSAI order was issued without proper procedural steps, including a show-cause notice and an opportunity for a hearing, and that it could lead to significant financial losses. The High Court agreed that the order should not have been passed without hearing Dabur first.
The Delhi High Court has granted interim relief to Dabur, staying an order from the Food Safety and Standards Authority of India (FSSAI) that banned the company from selling food products with "100%" organic and purity claims. Dabur had approached the court, arguing that they were unfairly targeted by the FSSAI's social media-publicized ban on products like honey, apple cider vinegar, and ghee, which carried labels such as "100% Natural." The company also claimed the FSSAI order was issued without proper procedural steps, including a show-cause notice and an opportunity for a hearing, and that it could lead to significant financial losses. The High Court agreed that the order should not have been passed without hearing Dabur first.
The Delhi High Court has granted interim relief to Dabur, staying an order from the Food Safety and Standards Authority of India (FSSAI) that banned the company from selling food products with "100%" organic and purity claims. Dabur had approached the court, arguing that they were unfairly targeted by the FSSAI's social media-publicized ban on products like honey, apple cider vinegar, and ghee, which carried labels such as "100% Natural." The company also claimed the FSSAI order was issued without proper procedural steps, including a show-cause notice and an opportunity for a hearing, and that it could lead to significant financial losses. The High Court agreed that the order should not have been passed without hearing Dabur first.
The Delhi High Court (HC) on Friday stayed an order passed by the Food Safety and Standards Authority of India (FSSAI) that banned the Indian FMCG company, Dabur, from selling food products with misleading “100 per cent” organic and purity claims.
The food safety regulator had flagged the brand’s products through a social media post, prohibiting the sale of honey, apple cider vinegar, sesame oil, cow ghee, coconut water, virgin coconut oil and coconut milk. These products were allegedly sold with labels such as “100% Natural”, “100% Pure” and “100% Purity Guaranteed.”
Dabur had approached the Delhi HC on August 3, seeking relief from the order that was issued by FSSAI. The brand claimed that it was being singled out among several categories of food products that use the “100 per cent” expression. It also alleged that FSSAI’s publicisation of the order on social media portrayed the brand in a negative light and that it gave off the impression that its products were substandard.
"It is pertinent to state that the expression '100 per cent' is being used in one way or the other, across several categories of food products by many other major players; however, the Petitioner has been singled out," the plea stated.
Sandeep Sethi, the company's advocate, argued that the order was passed without issuing a show-cause or improvement notice or an opportunity for a hearing. The company held up the Food Safety and Standards (Advertising and Claims) Regulations, 2018, which states that before taking any action, FSSAI is required to seek clarification and wait for a response from the food business operator.
Dabur added that it would be forced to withdraw, repackage or destroy products worth ₹150 crore if FSSAI’s orders are followed through.
Justice Amit Mahajan granted interim relief, stating that such an order should not have been passed without issuing a notice and hearing Dabur first. The matter will be next heard on August 24.