Dabur Accuses FSSAI of Favouring Rivals In '100%' Label Ban On Products

Dabur filed a writ petition in the Delhi High Court challenging an immediate ban on '100%' product claims by the Food Safety and Standards Authority of India (FSSAI).

Legal documents show the ban affects the maker of Réal fruit juices and Odonil room fresheners. The food regulator's directive risks ₹150 crore worth of the company's inventory, as per a report by Moneycontrol.

The Delhi High Court stayed the FSSAI order until August 24, observing that FSSAI should have heard Dabur first. FSSAI had prohibited the sale of food products using the '100%' claim with immediate effect.

The fast-moving consumer goods major alleged regulatory bias in its petition. The prohibitory order "is not in the public interest, and has been issued to subserve the business interests of other manufacturers", Dabur stated in its plea filed on August 6.

Inventory At Serious Risk

Over ₹150 crore worth of inventory across 11 flagship products, including Dabur Honey, Dabur Virgin Coconut Oil and Réal Activ Coconut Water, is at risk of destruction.

FSSAI prohibited sales with immediate effect and demanded an action-taken report within 15 days without issuing a prior show-cause or improvement notice.

The company also stated the action came without giving it an opportunity to explain its position. Dabur stated the order was issued in a "mechanical manner" without even looking at the labels.

"DABUR HOMMADE Coconut Milk and DABUR Cold Pressed Sesame Oil did not ever bear the claim of '100%' on the product label, as alleged in the Impugned Prohibitory Order. 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," the company said.

Citing the advertising rules, regulator FSSAI stated that the "100%" claim is misleading and violates the Food Safety and Standards (Advertising and Claims) Regulations, 2018.

Dabur had already started changing its packaging. The company stated last week that it had begun removing the "100%" claim from most labels, advertisements, and websites.

Immediate Retail Fallout

The filing also flagged an immediate impact on the company’s retail supply chain after the order was announced. Dabur pointed out that the regulator publicised the order on social media platforms, where it has been viewed by the public at large.

The company added that channel platforms "have been advised not to sell the products of the company with the '100%' claim".

Retailers reacted immediately, as, on August 4, Zomato-backed quick-commerce platform Blinkit sent an urgent end-of-day ultimatum to suspend all listings.

An email from the platform attached to the court filing informed Dabur, "Any liabilities arising out of this case would not be the responsibility of Blinkit", as per Moneycontrol.

Hospitality chains also pulled back. Hilton Hotels asked the consumer goods firm to identify the disputed items and proposed removing them until resolution, court documents showed.

The regulator is tightening scrutiny as FSSAI recently targeted prominent consumer companies over deceptive marketing, synthetic additives and poor sanitation.

The authority banned absolute, unprovable marketing descriptions including "100% pure", "100% natural" or "100% organic" on packaged food items.

'100%' Claims Used Across Industry

The regulator's order implied that terms such as "100% pure" disparage other manufacturers' products. Dabur challenged this logic in court.

"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 company stated in its petition.

The firm added that the expression "100%" is used across the industry.