{"id":6504,"date":"2024-04-24T19:18:00","date_gmt":"2024-04-24T13:48:00","guid":{"rendered":"https:\/\/www.thirdeyesight.in\/?p=6504"},"modified":"2024-07-09T19:26:46","modified_gmt":"2024-07-09T13:56:46","slug":"supreme-courts-whip-in-patanjali-case-a-wake-up-call-for-the-fmcg-sector","status":"publish","type":"post","link":"https:\/\/myechoproject.com\/TES\/supreme-courts-whip-in-patanjali-case-a-wake-up-call-for-the-fmcg-sector\/","title":{"rendered":"Supreme Court&#8217;s whip in Patanjali case a wake-up call for the FMCG sector"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Mumbai, 24 April 2024<\/em> <br><em>Sharleen Dsouza, Business Standard <\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With the Supreme Court cracking down on Patanjali over misleading advertisements, the advertisement industry is concerned. While industry players acknowledge that some degree of exaggeration in claims is common, the Supreme Court\u2019s firm action signals an impending shift.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On Tuesday the SC said that its interest was not limited to Patanjali but all those Fast-Moving Consumer Goods (FMCGs) and drug companies that mislead consumers through their advertisements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And Patanjali is not the first one to have crossed the line of puffery. There have been many cases in the past, like Horlicks Ltd versus Zydus Wellness Products where the former sought for a permanent injunction against Zydus for the broadcast of false advertisement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Similarly, in Rajendra versus Union of India, the Bombay High Court restrained any good or service sale claiming it had supernatural and miraculous powers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cPuffery in advertising is as old as advertising. There is always an element of exaggeration. Over the years, the government has looked the other way. Guys on the ground should take companies and brands to task and have largely been in cahoots with most of the brands,\u201d said Sandeep Goyal, chairman and managing director of Rediffusion Brand Solutions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Goyal believes that the SC coming down heavily on Patanjali would be a deterrent for other brands. \u201cPuffery or not is for someone to figure out. In most food products, FSSAI doesn\u2019t care. Who is to identify these ads? I think the SC has done something. This won\u2019t deter other brands and get them to make claims which are within the realm of what is correct,\u201d Goyal said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>A question of ethics<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Industry experts point out that the primary objective of advertisement is to stimulate desire in the consumer\u2019s mind. This happens by hook or by crook. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cMisleading a consumer has become inherent in advertising to a certain extent. I think this is dangerous when it comes to food, as it is basic nutrition. If you are embedding misleading information or mis-stating facts in ads then it has a real impact on whoever the customer or consumer is of that product. It is good that the issue has been highlighted,\u201d said brand expert Devangshu Dutta, founder of Third Eyesight.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Then there is the Advertising Standards Council of India and discussions about ethical standards within the industry. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>But Dutta believes there is a clear disconnect between what advertisements should say and what actually transpires. \u201cI hope it gets acted upon from the government\u2019s side as well. Self-regulation doesn\u2019t seem to work. We all wish that it works, but it doesn\u2019t. If it becomes more stringent, then it will be good overall,\u201d he said.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While FMCG players are concerned about the stringent action of the Supreme Court, they believe that this will lead to improved advertisement regulation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Ensuring compliance<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Speaking on condition of anonymity, a senior executive of a leading FMCG company said, \u201cThe industry is already disciplining itself due to the growing consumer awareness, stringent ASCI guidelines and the impact of influencer marketing. This will further ensure that misleading ads will be few and far in the future.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some companies also ensure that their ads adhere to ASCI guidelines before launching them. \u201cWe run our ads with ASCI before we release them. This practice has worked in our favour,\u201d said another executive on condition of anonymity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In its hearing, the SC had said, \u201cWe are of the opinion that the issue relating to implementation of the relevant provisions of the Drugs and Magic Remedies Act and the Rules, the Drugs and Cosmetic Act and the Rules, and the Consumers Act and the relevant rules needs closer examination in the light of the grievances raised by the petitioner\u2026not just limited to the respondents before this court but to all similarly situated\/ placed FMCGs who have\u2026 misleading advertisements, and (are) taking the public for a ride\u2026 affecting the health of babies, school going children and senior citizens who have been consuming products on the basis of the said misrepresentation.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>(Published in <a href=\"https:\/\/www.business-standard.com\/companies\/news\/supreme-court-s-whip-in-patanjali-case-a-wake-up-call-for-the-fmcg-sector-124042401273_1.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Business Standard<\/a>)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court&#8217;s whip in Patanjali case a wake-up call for the FMCG sector<\/p>\n","protected":false},"author":1,"featured_media":6506,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[27,212,274,746,215,625,37,3,43],"tags":[97,52,174,101,103,183,250,214,291,216,292,293,793,217,624,801,59,69,120,799,700,297,294,65,629],"class_list":["post-6504","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-branding","category-consumer","category-csr","category-fmcg","category-food-grocery","category-health-wellness","category-marketing","category-press-quotes","category-retail","tag-advertising","tag-branding","tag-consumer","tag-consumer-goods","tag-consumer-products","tag-ethical-consumer","tag-fmcg","tag-food","tag-food-beverage","tag-food-grocery","tag-food-and-grocery","tag-food-processing","tag-food-safety","tag-food-service","tag-health","tag-horlicks","tag-india","tag-indian-retail-sector","tag-marketing","tag-nutrition","tag-packaged-foods","tag-patanjali","tag-processed-food","tag-retail","tag-wellness"],"yoast_head":"<!-- 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