FSSAI cracks down on FMCG giants Nestlé India and HUL over misleading labels, safety violations

In an aggressive nation-wide enforcement drive targeting misleading product claims and regulatory non-compliances, the Food Safety and Standards Authority of India (FSSAI) has issued official show-cause notices to consumer goods giants Nestlé India Limited and Hindustan Unilever Limited (HUL), while revoking operating licenses for two regional food manufacturers following severe safety violations.

The regulator’s swift actions stem from recent audits and market surveillance across digital e-commerce platforms and physical markets. The inspection drive exposed widespread infractions, including deceptive health benefit assertions, mismatched labeling declarations, and unauthorised product marketing.

Scrutiny on FMCG giants 

The food regulatory body flagged multiple popular products from leading multinational portfolios:

Hindustan Unilever Limited: FSSAI served a notice regarding misleading health claims on "Horlicks Mother’s Plus Kesar 400 g BIB". Inspections revealed that claims such as "Healthy Birth Weight" on product packaging and advertisements violated the FSS (Advertising and Claims) Regulations, 2018, by falsely implying the product directly imparts physiological health benefits.

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Additionally, expressions like "For Pregnancy and Lactation with Protein for Birth Weight and DHA for Brain Development – No Added Sugar" were improperly incorporated into product titles on e-commerce platforms.

Nestlé India Limited: The regulator issued notices targeting multiple product lines.

1) Nescafé Ready-To-Drink range: Products including Nescafé Intense Café (Cappuccino flavor), Nescafé Choco Mocha, and Nescafé Chilled Latte — manufactured via M/s Schreiber Dynamix Dairies Pvt. Ltd. and M/s Lotus Dairy Products Pvt. Ltd. — exhibited conflicting label declarations.

Front packs carried the label "Flavoured Milk", whereas rear packaging and online listings classified the items as "Proprietary Food – 1.12 Dairy Based Drink" or advertised them as "crafted with the goodness of flavoured double toned milk".

FSSAI clarified that the beverages fall under the standardised category of "Flavored Milk" under the FSS (Food Products and Food Additives) Regulations, 2011, rendering proprietary labeling incorrect.

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2) Nestlé Resource Renal Vanilla Flavour Powder: Marketed for the dietary management of individuals with Conservatively Treated Chronic Kidney Disease, the product lacked obligatory prior approval from the Food Authority under the FSS (Health Supplements, Nutraceuticals, Food for Special Dietary Use, Food for Special Medical Purpose, and Prebiotic and Probiotic Food) Regulations, 2022.

The packaging also omitted mandatory vegetarian/non-vegetarian symbols, breaching the FSS (Labelling and Display) Regulations, 2020.

License suspensions & regulatory mandates

Besides notices to major brands, FSSAI suspended the licenses of local food business operators M/s Sukhdarshan Pharma and M/s Bala Ji Food Products after severe food safety violations were uncovered during physical site inspections.

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The regulator directed the affected corporate entities to submit show-cause responses within a stipulated timeframe, warning that failure to provide satisfactory explanations will prompt immediate legal action under the FSS Act, 2006. Enforcement directives may require companies to pull non-compliant digital advertisements and issue mandatory corrective public notices.