Dabur shares fell after FSSAI banned sale of products carrying misleading "100%" claims.
FSSAI cited unverifiable labels across honey, ghee, coconut water and other food products.
Dabur must stop sales immediately and submit an action taken report within 15 days.
Dabur Shares Fall As FSSAI Bans Sale Of Products Carrying '100%' Claims
The food regulator directed the FMCG major to stop selling several products carrying unverifiable "100%" claims and submit an action taken report within 15 days
Dabur Shares Fall As FSSAI Bans Sale Of Products Carrying '100%' Claims
Summary
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Shares of Dabur India fell 2.61% to ₹414.80 on Tuesday after the Food Safety and Standards Authority of India (FSSAI) prohibited the FMCG major from selling several food products carrying misleading "100%" claims.
The stock was down about ₹11 from its previous close as investors reacted to the regulatory action.
What Prompted FSSAI's Action?
FSSAI directed Dabur India to immediately stop the sale of food products carrying claims such as "100% Natural", "100% Pure", "100% Purity Guaranteed", "100% Organic" and "100% Tender Coconut Water", saying such statements are ambiguous, unverifiable and likely to mislead consumers under the Food Safety and Standards (Advertising & Claims) Regulations, 2018.
The prohibition covers several everyday food products marketed by Dabur, including honey, cow ghee, apple cider vinegar, virgin coconut oil, sesame oil, coconut water, coconut milk and other food products carrying similar "100%" claims.
The regulator also found that Dabur Himalayan Organic Apple Cider Vinegar and Dabur Organic Honey displayed the Jaivik Bharat logo without a valid FSSAI organic endorsement. It further said Dabur Hommade Coconut Milk was marketed with a "100% Purity" claim, which is not permitted for compound food products under the regulations.
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FSSAI said it had earlier issued a notice directing Dabur to discontinue the claims, but no satisfactory corrective action was taken. The regulator has now asked the company to submit an Action Taken Report (ATR) within 15 days.
Dabur Reviewing The Notice
Responding to the development, Dabur India said it is reviewing the regulator's notice.
"We have received the FSSAI notice and are in the process of checking the content mentioned in the notice on our website," the company said in a statement.
The action is part of FSSAI's broader crackdown on misleading food labelling and advertising. Recently, the regulator also directed PepsiCo India to remove the word "energy" from new Sting packaging after discontinuing recognition of "energy drinks" as a separate food category.