FSSAI directs Dabur to stop sale of products carrying misleading claim; stock declines 2 pc

FSSAI has ordered Dabur India to immediately stop selling several food products carrying allegedly misleading "100 per cent" and organic claims, citing violations of food advertising and organic regulations. The company must submit an Action Taken Report within 15 days as shares declined

New Delhi:  The Food Safety and Standards Authority of India (FSSAI) has issued a prohibition order against Dabur India Limited over the sale of food products carrying allegedly misleading claims.

The food regulator has directed the FMCG major to immediately cease the sale of products bearing claims such as “100 per cent Natural”, “100 per cent Pure”, “100 per cent Purity Guaranteed”, “100 per cent Organic” and “100 per cent Tender Coconut Water”.

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The action follows FSSAI’s observation that these claims were ambiguous, unverifiable and likely to mislead consumers. According to the regulator, the use of such claims violates the Food Safety and Standards (Advertising and Claims) Regulations, 2018.

FSSAI further noted that Dabur Himalayan Organic Apple Cider Vinegar and Dabur Organic Honey displayed the Jaivik Bharat logo without valid FSSAI organic endorsement, allegedly violating the Food Safety and Standards (Organic Foods) Regulations, 2017.

In addition, Dabur Hommade Coconut Milk was marketed with the claim “100 per cent Purity”, which is not permitted for compound food products, the regulator said. The regulator also stated that despite an earlier notice directing the company to discontinue the misleading “100 per cent” claims, satisfactory corrective action was not taken.

FSSAI has directed the company to immediately stop the sale of the identified products and submit an Action Taken Report (ATR) within 15 days.

Following this, shares of Dabur India traded more than 2 per cent lower at Rs 414.60 apiece on the BSE, hitting an intraday low in the morning trade. The FMCG stock has recorded a 52-week low of Rs 401.05 and a 52-week high of Rs 576.80.

However, the stock has declined over 20 per cent in the last one-year horizon and plunged almost 30 per cent in the last five-year period.