CCPA fines food companies for misleading '100% natural' claims
The Central Consumer Protection Authority (CCPA) has penalised two food and beverage companies for misleading advertisements and unfair trade practices, marking a significant step in regulating exaggerated product claims. Storia Foods and Beverages and Bectors Food Specialities (English Oven) were each fined Rs 1 lakh for using terms like '100% natural', '100% Juice', and '100% atta' on packaging and digital platforms, despite their products containing additional ingredients such as water, fruit concentrates, preservatives, or less than 100% whole wheat flour.
In its order, the CCPA stated that the term '100%' is an absolute numerical expression that must be used with precision and cannot be employed loosely as a marketing gimmick. Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra emphasised that such claims can mislead consumers into believing the product is entirely composed of the advertised ingredient, when in reality it contains other components.
The case came to light after complaints were filed against Storia Foods for advertising its beverage as '100% Natural Tender Coconut Water' despite containing added water and sugar, and against Bectors Food for marketing bread as '100% atta' while the whole wheat content was only 87%. The CCPA found these assertions to be false and deceptive, violating consumer rights under the Consumer Protection Act, 2019.
Both companies have been directed to immediately cease all misleading claims on their packaging, websites, and other promotional materials. They must also ensure that future advertisements are accurate and substantiated. The penalties, though relatively modest, serve as a warning to the broader food and beverage industry about the consequences of unverified claims.
The CCPA's action aligns with its mandate to protect consumers from unfair trade practices and misleading advertisements. The authority has been increasingly vigilant in scrutinising claims related to food products, especially those that use terms like 'natural', 'pure', or '100%'. Such terms require clear substantiation, and any deviation can attract regulatory action.
This move is expected to encourage greater transparency in product labelling and advertising, helping consumers make informed choices. It also underscores the importance of compliance with legal standards that prohibit false or misleading representations. Companies are advised to review their marketing claims to ensure they are factually accurate and not likely to deceive the public.
The CCPA has urged consumers to report any suspicious advertisements or unfair trade practices through its dedicated portal. The authority continues to monitor the market to safeguard consumer interests and uphold the integrity of the marketplace.
