Nestle faces FSSAI crackdown over baby food formula claims. What the regulator found 

In a fresh regulatory development for the fast-moving consumer goods sector, the Food Safety and Standards Authority of India (FSSAI) has initiated action against FMCG major Nestle India over alleged non-compliance in its infant product lineup

The central food safety body zeroed in on promotional claims made on product labels and advertising materials, specifically targeting assertions around "5 HMOs" (Human Milk Oligosaccharides) and "easy-to-digest whey" proteins in its baby food offerings.

According to regulatory findings, such marketing claims failed to align with prescribed labeling norms governing infant nutrition. The probe also flagged broader formulation parameters across select batches, including non-permitted levels of biotin that breached statutory standard limits, along with discrepancies in nutritional breakdown declarations.

The notice also referred to Section 3 of the Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992, which places restrictions on the advertisement and promotion of such products.

What FSSAI found

The apex food safety regulator initiated a detailed examination of the company's popular baby formula lines — specifically NAN Excella Pro Stage 1 and Lactogen Pro 1 — alongside their promotional materials listed on e-commerce platforms. The scrutiny revealed promotional claims on NAN Excella Pro Stage 1 highlighting "5 HMOs" and "Whey Protein," while promotional text for Lactogen Pro 1 asserted that its "Whey Protein" was easy to digest.

Following initial clarifications from the FMCG major, the authority determined that both offerings breached Regulation 4(2) of the FSS (Foods for Infant Nutrition) Regulations, 2020, which restricts promotional material designed to boost the saleability of infant foods.

Additionally, the marketing tactics were found to violate Section 3 of the Infant Milk Substitutes, Feeding Bottles and Infant Foods (IMS) Act, 1992, which enforces a strict prohibition on advertising and promoting such products.   The regulatory dragnet expanded further when laboratory testing of a sample of Nestlé India’s Follow-up Formula revealed sub-standard Biotin content. A subsequent re-analysis conducted by a Referral Laboratory confirmed that the sample failed to conform to prescribed Biotin standards mandated under the 2020 Infant Nutrition Regulations.

In response to the series of contraventions, the regulator has formally launched three separate adjudication cases against Nestlé India Limited covering all three flagged products.

Speaking on the development, a Nestlé India spokesperson told ANI, “Our products are fully compliant with all the applicable regulations. The said products (i.e., NAN EXCELLA PRO & LACTOGEN PRO) and their labels were approved by the expert committee of FSSAI. In response to the notice, we have again submitted our detailed response to the authorities regarding statements appearing on the label, which are factual in nature, and supported by scientific literature. We confirm to adherence of all regulations including all norms and label declarations as per applicable laws. We will continue to work closely and support FSSAI in its efforts towards consumer awareness."

Shares of Nestle India dropped nearly 2% during trading as investors factored in potential brand erosion, legal liabilities, and heightened regulatory scrutiny across the firm’s core nutrition vertical.