Bhubaneswar, August 4 (newsalert24x7): The Food Safety and Standards Authority of India (FSSAI) has issued a prohibition order against FMCG giant Dabur India Limited, directing the company to immediately stop the sale of specific food products carrying allegedly ambiguous, unverifiable, and misleading claims.

Following the regulator's action, shares of Dabur India dropped over 2 per cent to hit an intraday low of Rs 414.60 on the BSE during morning trade.

Key Violations Identified by FSSAI

The food regulator noted that several of Dabur's marketing tags violate the Food Safety and Standards (Advertising and Claims) Regulations, 2018, as well as organic food guidelines:

  • Prohibited "100%" Labels: Dabur has been ordered to immediately cease selling products carrying claims such as "100 per cent Natural", "100 per cent Pure", "100 per cent Purity Guaranteed", "100 per cent Organic", and "100 per cent Tender Coconut Water".
  • Unauthorized Organic Logo: Dabur Himalayan Organic Apple Cider Vinegar and Dabur Organic Honey displayed the Jaivik Bharat logo without valid FSSAI organic endorsement, violating the Food Safety and Standards (Organic Foods) Regulations, 2017.
  • Non-Permissible Claims on Compound Foods: Dabur Hommade Coconut Milk was marketed with a "100 per cent Purity" tag, which is strictly not permitted for compound food products.

Regulatory Action & 15-Day Deadline

The food regulator emphasized that Dabur failed to take satisfactory corrective measures despite an earlier warning notice regarding misleading labels:

"FSSAI has directed the company to immediately stop the sale of the identified products and submit an Action Taken Report (ATR) within 15 days."

Stock Market Impact

The regulatory crackdown triggered an immediate drop in Dabur's stock performance on Tuesday morning:

  • Current Trading Price: Traded over 2% lower at Rs 414.60 on the BSE.
  • 52-Week Range: 52-week low of Rs 401.05 | 52-week high of Rs 576.80.
  • Long-Term Trend: The FMCG stock has fallen over 20 per cent over the last year and declined nearly 30 per cent over a five-year horizon.

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