The licences of 14 products manufactured by Divya Yoga Pharmacy are suspended by Uttarakhand licencing authority for misleading advertisements.
Patanjali has repeatedly violated the Drugs and Magic Remedies Act. The affidavit of the state, filed through Dr. Mithilesh Kumar, joint director of State Licensing Authority, Ayurvedic and Unani Services, said that: “In an order issued on April 15, 2024, to Divya Pharmacy and Patanjali Ayurved Limited, it was conveyed that the manufacturing licences for 14 products were suspended with immediate effect. The suspension took place for repeated violations of regulations, particularly concerning misleading advertisements, under Rule 159(1) of The Drugs and Cosmetics Rules, 1945.”
Every now and then, FMCG (Fast-moving Consumer Goods) companies are facing the wrath of legal system due to unethical business practices.
In this article, we will discuss about the burning reality of FMCG products, controversies, and consumer awareness.
Fast Moving Consumer Goods abbreviated as FMCG are broad range of packaged consumer goods with short shelf life. This includes packaged foods, dry goods, beverages, over-the-counter drugs, toiletries, and so on. As per recent projections, the FMCG industry is set to touch $15.3 trillion by end of 2025 globally. Globally and nationally, the biggest FMCG organisations are Johnson & Johnson, Nestle, Hindustan Unilever, Coca-Cola, Pepsi, and so on.
Nestle India, Bournvita, Hindustan Unilever, and now Patnajali, the common concern about the products sold by these key FMCG players in India is product quality.
Gradually, the FMCG products are coming under the scanner of buyer and regulatory bodies. Recently, Nestle India were accused of adulterating baby foods in India which led to a record drop in share market. This was the second time Nestle India faced product quality issues after the famous 2015 instant noodles brand maggi was under scrutiny for excess amount of lead and MSG.
Now, the Indian government told ecommerce websites to remove the term ‘Health Drinks’ from any Bournvita or beverages brands.
India's one of the most popular malted drink Cadbury Bournvita came under the scanner when an influencer revealed excess sugar content in the product. National Commission for Protection of Child Rights (NCPCR) took prompt action against the company and asked to withdraw all misleading advertising and labels.
Amidst global economic slowdown, losing the trust of consumers is a long-term and greater risk for FMCG companies.
Currently, with the ban of drugs like Swasari Gold, Swasari Vati, Bronchom, Swasari Pravahi, Swasari Avaleh, Mukta Vati Extra Power, Lipidom, Bp Grit, Madhugrit, Madhunashini Vati Extra Power, Livamrit Advance, Livogrit, Eyegrit Gold and Patanjali Drishti Eye Drop, Patanjali’s reputation hit the bottom low.
The drug inspector/district ayurvedic and unani officer, Haridwar, had filed a criminal complaint against Mr. Ramdev, Acharya Balkrishna, Divya Pharmacy and Patanjali Ayurved Limited under sections 3, 4 and 7 of the DMR Act on April 16, 2024.
India’s largest FMCG player Hindustan Unilever (HUL) had to rebrand in response to recent regulatory changes for health drinks products. The company has renamed ‘health food drinks’ category as ‘functional nutritional drinks’. They also removed ‘health’ label from Horlicks.
Both Ramdev and Balkrishna, issued an “unconditional and unqualified apology” in 67 publications following the supreme court orders.
“We must clarify that we aren’t here to gun for a particular company or authority. Our endeavour is to act in the public interest against FMCGs and drug companies that have been misleading the public. It’s a part of the process of the rule of law,” emphasised the lawyers during ongoing Patanjali case.
The demand of FMCGs will increase every year. Thus, companies should spend more on research and development and avoid unethical business practices like misleading advertisement.
