CCPA fines Storia, English Oven Rs 1 lakh each over misleading food ads

New Delhi: The Central Consumer Protection Authority (CCPA) has imposed penalties of Rs 1 lakh each on Storia Foods and Beverages Pvt Ltd and Mrs. Bectors Food Specialities Limited (English Oven) for misleading advertisements and unfair trade practices related to the use of ‘100 per cent’ claims on food products, according to an official statement released on Sunday.

The consumer watchdog has directed both companies to immediately remove the disputed claims from their product packaging, websites and digital platforms, the Ministry of Consumer Affairs, Food & Public Distribution said.

The action was taken under the Consumer Protection Act, 2019, and the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.

The government said the term ‘100 per cent’ represents a precise and absolute numerical claim and cannot be used casually, approximately or merely as a marketing phrase. According to the authority, such claims must accurately represent the actual composition of a product and should be understood in their plain and literal meaning by an ordinary consumer.

The CCPA took suo motu cognisance of advertisements by Storia Foods for products promoted as ‘100 per cent Tender Coconut Water’ and ‘100 per cent Juice’ variants, including pomegranate, mixed fruit, mango and guava chilli flavours. These products were advertised through the company’s website, product packaging and major e-commerce platforms.

The authority found that Storia’s ‘100 per cent Tender Coconut Water’ was made using coconut water concentrate reconstituted with water, while the product label also mentioned the presence of preservative INS 202.

The CCPA held that an ordinary consumer would reasonably interpret the claim to mean that the product contained only natural tender coconut water.

Similarly, the authority noted that several juice products marketed as ‘100 per cent Juice’ contained water, fruit concentrates and other ingredients, making the claims misleading about the actual composition of the products.

In a separate case, the CCPA examined advertisements by English Oven carrying claims such as ‘100 per cent Atta Bread’ and ‘100 per cent Whole Wheat Bread’ across print, digital and social media platforms.

During the proceedings, the company admitted that the products contained 87 per cent whole wheat flour. The CCPA ruled that a product containing 87 per cent whole wheat flour cannot be advertised as ‘100 per cent Atta’ or ‘100 per cent Whole Wheat’.

The authority also observed that the combined use of claims such as ‘100 per cent Whole Wheat Bread’ and ‘Zero Maida’ created a misleading impression that the bread was made entirely from whole wheat flour and contained no other ingredients.

Rejecting the company’s argument that the claim only referred to wheat being the sole grain source, the CCPA said advertisements must be evaluated from the perspective of a reasonable consumer. It added that technical explanations provided later cannot override the impression created by marketing claims.

The government reiterated that all claims related to composition, quality, nutrition or health benefits must be truthful, verifiable and free from deception. It added that strict action would continue against misleading advertisements that affect consumers’ right to make informed choices.


With IANS inputs

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