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
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 (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.