HUL vs Beco: Delhi HC Reserves Order On Surf Excel, Vim Ad Dispute

The Delhi High Court on Monday reserved its order on whether it can hear Hindustan Unilever Ltd’s (HUL) plea against home-care brand Beco over an advertising campaign targeting Surf Excel and Vim products, according to a Mint report.

HUL is seeking an interim injunction against Beco, alleging that its campaign makes misleading claims about the products and harms its brands. Beco has challenged the Delhi court’s jurisdiction to hear the matter.

Why HUL And Beco Are Disputing Jurisdiction

Senior counsel Amit Sibal, appearing for HUL, argued that the case has a clear connection with Delhi because Beco’s website can be accessed by consumers in the city and allows them to purchase its products.

Beco, however, argued that simply making a website or online advertisement accessible in Delhi does not mean the company deliberately targeted consumers there. Its counsel also pointed out that online campaigns can be viewed across the country.

The dispute centres on Section 20 of the Code of Civil Procedure, which allows a suit to be filed where the cause of action arises wholly or partly. Beco argued that allowing online accessibility to establish jurisdiction could effectively give courts across India the power to hear such cases.

Beco’s principal place of business and the physical advertisements involved in the dispute are in Mumbai. The court had also questioned at an earlier hearing whether the availability of Beco’s social media posts and website in Delhi was enough to establish a cause of action in the city.

What Beco’s Campaign Says About HUL Products

The dispute relates to Beco’s #WarOnWhatsHidden campaign, which targets HUL’s Surf Excel and Vim Dishwash Gel. The campaign encourages consumers to examine the ingredients used in everyday home-care products.

Beco’s outdoor advertisements and videos highlight ingredients including benzisothiazolinone (BIT) and linear alkylbenzene sulfonate (LAS) in HUL products. Beco says its own laundry and dishwashing products are made without these ingredients.

HUL has alleged that the campaign wrongly portrays its products and makes misleading claims. The company is seeking an interim order restraining Beco from continuing the campaign while the dispute is heard.

Founded in 2019 by Aditya Ruia, Akshay Varma and Anuj Ruia, Beco sells home and personal-care products including dishwashing liquid, floor cleaner, laundry liquid, tissues and bamboo toothbrushes. Its investors include Tanglin Venture Partners, Titan Capital Winners Fund, Asian Paints promoter Manish Choksi, Rukam Capital and Synergy Capital.