FMCG major Dabur has moved the Delhi High Court against the Food Safety and Standards Authority of India (FSSAI) over the regulator's action against the use of “100%” claims on processed food products. Dabur has alleged discrimination and claimed that the regulatory action could put inventory worth around ₹150 crore at risk.
The company filed its petition before the Delhi High Court on August 6, challenging the FSSAI's directive as unilateral and arguing that it was issued without giving the company an adequate opportunity to present its case.
The Delhi High Court has provided interim relief to Dabur by staying the FSSAI order until August 24. The court observed that Dabur should have been given an opportunity to explain its position before such a directive was issued.
Delhi High Court Stays FSSAI Order Until August 24
During the hearing of Dabur's petition, the Delhi High Court stayed the FSSAI's order until August 24.
The court's observation regarding an opportunity to be heard has provided temporary relief to Dabur while the dispute continues.
The next hearing is therefore expected to be closely watched by the company, investors and the broader FMCG industry.
Why Did FSSAI Take Action Against Dabur?
The dispute centres on the use of terms such as “100% pure”, “100% natural” and “100% organic” on labels and advertisements for processed food products.
FSSAI has taken the position that such claims can be misleading and are contrary to the Food Safety and Standards (Advertising and Claims) Regulations, 2018.
The regulator directed companies to stop using such claims and sought action reports from affected businesses.
According to Dabur's petition, the FSSAI order required the company to immediately stop the use of the disputed claims and submit an Action Taken Report (ATR) within 15 days.
Dabur Alleges Discrimination and Favouring of Competitors
Dabur has strongly contested the regulator's action.
In its petition, the company alleged that the FSSAI's order was discriminatory and claimed that the regulator was effectively promoting the commercial interests of competing manufacturers.
Dabur argued that the “100%” claim was being used independently and did not make a comparison with another manufacturer's product.
The company also argued that the terminology was commonly used in the industry and alleged that the regulator issued the directive without first issuing a show-cause notice or giving Dabur an opportunity to rectify the matter.
These are Dabur's allegations before the court and have not been established as findings against FSSAI.
₹150 Crore Inventory at Risk, 11 Dabur Products Affected
According to Dabur, the FSSAI action affects 11 of its flagship products.
The products cited include Dabur Honey, Dabur Virgin Coconut Oil and Real Activ Coconut Water.
Dabur has also claimed that certain products were included in the regulatory action despite allegedly not carrying the disputed “100%” wording on their labels.
The company specifically cited Dabur Homemade Coconut Milk and Dabur Cold Pressed Sesame Oil, saying the products did not carry the “100%” claim.
Dabur estimates that inventory worth around ₹150 crore could be wasted if the products cannot be sold or distributed under the regulator's directive.
Blinkit Disables Product Listings
The dispute also created challenges for Dabur's distribution network.
Following the FSSAI order and related developments on social media, retail and online channels were advised against selling products carrying the disputed claims.
On August 4, Blinkit disabled listings of the affected Dabur products, according to the details cited in the company's petition.
Blinkit also told Dabur that it would not accept legal or financial responsibility arising from the dispute.
The developments highlight how regulatory action can quickly affect FMCG companies beyond manufacturing and labelling, potentially disrupting their e-commerce, quick-commerce and retail supply chains.
Hilton Also Reportedly Considered Removing Affected Products
The dispute reportedly extended to the hospitality supply chain.
According to the details provided by Dabur, Hilton Hotels proposed excluding the affected products from its supply chain until the regulatory issue is resolved.
Such developments could increase pressure on FMCG companies when regulatory restrictions affect the sale or distribution of products across multiple channels.
Dabur Says It Had Already Started Changing Labels
Dabur has also clarified that it had already started removing the disputed “100%” claims from the labels of products identified in the FSSAI communication.
According to a statement issued by the company, labels, advertisements and website references for most of the products mentioned in the regulator's order had either already been changed or were in the final stages of modification.
Dabur's position is that the company was already taking steps to comply with the regulatory concerns when the latest action was taken.
What Is FSSAI's Stand on ‘100%’ Claims?
FSSAI has been tightening scrutiny of claims and marketing practices in the food industry, particularly where product descriptions could potentially mislead consumers.
The regulator's position is that claims such as “100%” on processed food products need to comply with applicable advertising and labelling regulations.
The broader regulatory push has implications for FMCG companies because changes in labelling requirements can affect product packaging, inventory, advertising campaigns and distribution.
What Happens Next in the Dabur-FSSAI Case?
The Delhi High Court's interim relief means the dispute will continue to be examined while the FSSAI order remains stayed until August 24, based on the details of the hearing cited in the report.
The court's next proceedings could provide greater clarity on whether the regulator followed the required process and how Dabur's products and labels should be treated.
As of the latest information in the report, FSSAI has not issued a separate response to Dabur's allegations.
The case could also have wider implications for the FMCG sector if the court examines the regulatory framework surrounding “100%” claims on processed food products.
Dabur-FSSAI Case: Key Points
Company: Dabur
Regulator: FSSAI
Issue: Use of “100%” claims on processed food products
Dabur's allegation: Discrimination and favouring competitors
Inventory cited by Dabur: Around ₹150 crore
Products affected: 11 flagship products, according to Dabur
Court: Delhi High Court
Interim relief: FSSAI order stayed until August 24
Next focus: Further court proceedings and regulatory response
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