‘100%’ tag on label, disclaimers on the back: Why CCPA fined 2 companies, Pg12

Key Highlights:

• The Central Consumer Protection Authority (CCPA) imposed a penalty of ₹1 lakh each on Mrs. Bectors Food Specialities Ltd and Storia Foods and Beverages Pvt Ltd for misleading "100%" claims on their products.
• The companies were found to be engaging in misleading advertisements and unfair trade practices by prominently using "100%" labels despite products not being entirely composed as claimed.
• The CCPA invoked Sections 2(28) and 2(47) of the Consumer Protection Act, 2019, which define misleading advertisements and unfair trade practices, respectively.
• The action follows an advisory from the Food Safety and Standards Authority of India (FSSAI) last year, which noted that the "100%" term is undefined in its regulations and likely conveys a false sense of purity.

Detailed Insights:

• Mrs. Bectors' "100% Atta Bread" and "100% Whole Wheat Bread" were found to contain only 87% wheat flour, despite the company's defense that "100%" referred to wheat flour as the sole grain source.
• Storia's "100% Tender Coconut Water" was reconstituted from a 9.6% concentrate, and its "100% Juice" variants contained 4-16% fruit pulp or concentrate.
• The CCPA clarified that technical compliance with FSSAI manufacturing regulations does not provide a 'safe harbour' for deceptive advertising.
• The authority emphasized that fine-print disclaimers on the back of packaging do not negate misleading claims made prominently on the front.
• This action signifies a shift from the principle of 'buyer beware' to 'seller beware', placing greater responsibility on manufacturers for the accuracy of their claims.
• The Consumer Protection Act, 2019, empowers the CCPA to regulate matters concerning consumer rights violations, unfair trade practices, and false or misleading advertisements.

Key Concepts Involved:

• Central Consumer Protection Authority (CCPA): A regulatory body established under the Consumer Protection Act, 2019, to protect and enforce the rights of consumers as a class.
• Consumer Protection Act, 2019: An Indian parliamentary act that provides for the protection of consumer interests and establishes authorities for timely and effective administration and settlement of consumer disputes.
• Misleading Advertisement: Defined under Section 2(28) of the Consumer Protection Act, 2019, as an advertisement that falsely describes a product, gives a false guarantee, or deliberately conceals important information.
• Unfair Trade Practice: Defined under Section 2(47) of the Consumer Protection Act, 2019, as a trade practice that adopts any unfair method or deceptive practice, including false representations about the standard, quality, or composition of goods.
• Food Safety and Standards Authority of India (FSSAI): An autonomous statutory body established under the Food Safety and Standards Act, 2006, responsible for protecting and promoting public health through the regulation and supervision of food safety.