Dabur Shares Fall 2.8% After FSSAI Ban

Dabur India's shares fell 2.8% to ₹412 in early trade on Tuesday after the Food Safety and Standards Authority of India (FSSAI) directed the company to stop selling products with claims such as '100% Natural' and '100% Pure'.

The FSSAI has ordered Dabur to immediately discontinue the use of certain promotional claims on products including honey, cow ghee, and coconut oil.

According to the regulator, terms like '100% Natural' and '100% Purity Guaranteed' are unclear and may mislead consumers.

The FSSAI also raised concerns over the use of the Jaivik Bharat logo on Dabur's organic products without valid endorsement.

The regulator had earlier issued a notice to Dabur asking the company to withdraw the disputed claims, but no satisfactory corrective measures were taken.

Dabur has now been asked to submit an Action Taken Report within 15 days.

The action against Dabur is part of FSSAI's effort to tighten regulations around food labelling and advertising practices.

The authority has been scrutinising claims made by companies to ensure consumers are not misled by promotional language.

Recently, PepsiCo India also changed the packaging of its Sting beverage after FSSAI stopped recognising 'energy drinks' as a separate food category.

The latest regulatory move highlights the increasing focus on transparent food labelling and stricter enforcement of advertising standards in India's packaged food market.

The FSSAI's crackdown on misleading labels is expected to impact the food industry as a whole, with companies being forced to re-evaluate their marketing strategies.

The move is seen as a positive step towards protecting consumer interests and promoting fair business practices.

In the long run, the stricter regulations are likely to benefit consumers and companies that adhere to honest labelling practices.