WHAT IS MISLEADING BRAND NAMES, TRADE NAMES AND PRODUCT CLAIMS, LABELLING VIOLATIONS UNDER FSSAI?

 WHAT IS MISLEADING BRAND NAMES, TRADE NAMES AND PRODUCT CLAIMS, LABELLING VIOLATIONS UNDER FSSAI?

HOW MULTIPLE FOOD BUSINESS OPERATORS (FBOS) INCLUDING FERRERO, MARICO, PLUCKK, EMAMI, NEUHERBS, AND OTHERS EMPLOYING MISLEADING BRAND NAMES, DECEPTIVE HEALTH CLAIMS, AND LABELLING VIOLATIONS UNDER FSSAI.

FSSAI ISSUED NOTICES TO MULTIPLE FOOD BUSINESS OPERATORS (FBOS) FOR VIOLATING PROVISIONS OF THE FSS ACT, 2006 RELATED TO MISLEADING BRAND NAMES, TRADE NAMES AND PRODUCT CLAIMS, LABELLING VIOLATIONS AND OTHER CONSUMER COMPLAINTS.

The Food Safety and Standards Authority of India (FSSAI) has recently issued notices to multiple food business operators (FBOs) including Ferrero, Marico, Pluckk, Emami, Neuherbs, and others for misleading brand names, deceptive health claims, and labelling violations.

 These actions fall under the Food Safety and Standards Act, 2006 and the Advertising and Claims Regulations, 2018, with companies directed to take corrective measures immediately.

COMPANIES & PRODUCTS FLAGGED

COMPANY / BRAND	PRODUCT / CLAIM	ISSUE RAISED
Pluckk	Mango fruit juice – “No Added Sugar”	Ingredients included sugarcane juice, misleading consumers about sugar content
Ferrero India	Kinder Joy wafer – “Rich in Milk Solids”	Claim not substantiated by actual composition
Marico Ltd	Saffola Total Heart Pro cooking oil	Heart-health claims lacked scientific backing
Emami Healthy & Tasty	Cooking oil branding	Trade name implies health benefits without approval
Neuherbs	“True Vitamin” range	Term undefined under FSSAI rules, misleading
The Healthy Factory	“Zero Maida” bread & pizza base	Ingredients included atta & gluten, contradicting claim
Troovy	Veggie & Ragi chips	“Healthy” claims not justified by ingredients
Bikanervala	Hygiene complaint	Staff consuming food in kitchen during operations
Param Dairy Ltd	Dahi & rabri supplied via IRCTC	Alleged fungal contamination

RISKS & CONSUMER IMPACT

HEALTH MISREPRESENTATION:	Products marketed as “healthy,” “natural,” or “sugar-free” may mislead buyers into unsafe consumption choices.
REGULATORY PENALTIES:	FBOs face legal consequences, including fines and mandatory corrective actions.
CONSUMER TRUST:	Repeated violations erode confidence in food brands and highlight the need for stricter oversight.

CONCLUDING REMARKS

FSSAI is cracking down on deceptive food marketing in India, targeting both multinational and domestic brands. Consumers should stay vigilant, read labels thoroughly, and rely on verified certifications rather than marketing slogans.

#YOUR COMPLIANCE PARTNER R V SECKAR, FCS, LLB 79047 19295,

PENALTY ON STATUTORY AUDITOR FOR NON-DISCLOSURE OF RELATED PARTY TRANSACTIONS & MSME INTEREST DUES

 PENALTY ON STATUTORY AUDITOR FOR NON-

DISCLOSURE OF RELATED PARTY

 TRANSACTIONS & MSME INTEREST DUES

ROC Bangalore penalizes Statutory Auditor – Deloitte Haskins & Sells in the matter of Stanly OEM Sofas Limited

FACTS OF THE CASE

Non-disclosure of MSME interest details by statutory auditors is a serious issue leading to penalties for both the company and the auditor, as it violates the requirements of the MSMED Act, 2006 and the Companies Act, 2013.

Auditors are responsible for reporting the company's non-compliance, including details on unpaid amounts, delayed interest, and interest accrued but unpaid to MSME suppliers.

 Recent changes also require disclosure of all MSME payments, not just delayed ones, in Form 3CD of the tax audit report under Section 43B(h).

MSMED ACT, 2006:

Buyers of goods and services from MSMEs must disclose the status of payments to MSMEs in their annual accounts. This includes unpaid amounts, interest paid, and interest accrued but unpaid.

RELATED PARTY TRANSACTIONS NOT REPORTED

·      Non-disclosure of related entities as required under AS-18

 

·      Related party transactions carried out without proper Board approval.

 

ROC,BENGALURU LEVIES FINE ON PARTNER AT DELOITTE HASKINS & SELLS,

The Registrar of Companies, Karnataka, has imposed a penalty of ₹30,000 on Monisha Parikh, Partner at Deloitte Haskins & Sells, for failing to report critical non-compliances under Section 143 of the Companies Act, 2013 (Order dated 28.04.2025).

KEY TAKEAWAYS

Despite these significant irregularities, the statutory audit report contained no adverse remarks or qualifications.

This action underscores the increasing regulatory emphasis on auditor accountability, reporting diligence, and transparency in corporate disclosure.

Auditors must ensure accurate statutory disclosures to avoid penalties and legal consequences.

R V SEKAR FCS,LLB, 79047 19295