Justice Amit Mahajan, hearing Dabur’s petition challenging the August 3 FSSAI order, also issued notice to the Centre, FSSAI and other respondents.
The FSSAI had directed Dabur to immediately discontinue the sale of several products bearing “100%” claims, saying such declarations were ambiguous, incapable of objective verification and had the potential to mislead consumers.
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The products covered by the order include Dabur Honey, Dabur Honey Squeezy, Dabur Sunderbans Honey, Dabur Himalayan Apple Cider Vinegar, Dabur Virgin Coconut Oil, Dabur Cow Ghee, Real Activ 100% Tender Coconut Water, Dabur Hommade Coconut Milk and Dabur Organic Honey.
Dabur challenged the order on the ground that the regulator acted without issuing a prior show-cause or improvement notice and without giving the company an opportunity to be heard.
The company has argued that the Food Safety and Standards (Advertising and Claims) Regulations, 2018 require the regulator to seek clarification from a food business operator and consider its response before taking such action.Dabur has also contended that the order effectively requires it to recall or repackage products already available in the market. It said the FSSAI publicised the order on social media and that some channel partners and online retailers were advised not to sell the affected products, causing immediate commercial consequences.
The company has further challenged the legal basis of the prohibitory order, arguing that Section 18 of the Food Safety and Standards Act, 2006 only lays down guiding principles and does not independently empower a Designated Officer to prohibit the sale of products.
Dabur has also said the FSSAI order is unreasoned and does not explain how claims such as “100% Pure” or “100% Natural” violate the applicable regulations. According to the company, the order merely states that the claims “appear to be misleading” without recording specific findings.
The FMCG major has argued that the use of such expressions cannot by itself be considered misleading for products made from a single ingredient or those made entirely from natural ingredients.
Dabur has also pointed out that the FSSAI has not alleged that the products are adulterated, unsafe, spurious or sub-standard, saying the dispute is limited to their labelling and advertising.
The company has sought quashing of the August 3 prohibitory order and interim relief against its operation pending adjudication of its petition.
Dabur India shares were trading at ₹410.25 on Friday, down 1.05% at 1:24 pm IST.
(With inputs from Indu Bhan)