India’s food regulator has initiated legal action against Nestle India over infant formula marketing and manufacturing concerns.
Why has FSSAI initiated legal action?
The Food Safety and Standards Authority of India has initiated legal action against Nestle India Ltd. over alleged breaches of infant nutrition marketing rules and issues related to manufacturing standards.
The regulator raised concerns about promotional material for Nan Excella Pro Stage 1 and Lactogen Pro Stage 1. The material claimed the products contained “whey protein” and “5 HMOs” natural sugars.
FSSAI said such messaging violated rules restricting promotional claims intended to boost sales of baby food. The regulator has sought clarification from the Gurugram-based unit of the Swiss foodmaker. The action covers several alleged non-compliances pertaining to the Food Safety and Standards Act.
What did the regulator find in its testing?
FSSAI also found a sample of the company’s follow-up formula to be “sub-standard” for its Biotin content, according to the information disclosed by the regulator.
The finding formed part of the wider regulatory action involving the company. FSSAI said legal proceedings had been initiated over several instances of alleged non-compliance. The development also affected Nestle India shares, which reversed earlier gains and fell as much as 2.8% following the announcement, while the benchmark Nifty 50 Index advanced.
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How has Nestle India responded?
Nestle India disputed the concerns and maintained that its products complied with applicable regulations.
“Our products are fully compliant with all the applicable regulations,” a company spokesperson said. The spokesperson added that the two infant formulas and their labels had been approved by an expert committee at FSSAI.
The company has also submitted a detailed response concerning the statements appearing on the labels. According to the spokesperson, those statements were factual in nature and supported by scientific literature. The regulator’s concerns and the company’s response place the focus on both the marketing language used for infant nutrition products and compliance with applicable food standards.
What is the wider regulatory context?
The action comes as food-industry marketing and product labelling practices face closer regulatory scrutiny. The national regulator has proposed warning labels showing sugar, salt and fat content on packaged food.
Such proposed labels would apply across products made by companies ranging from soda manufacturers to chocolate and chips makers. In the Nestle India matter, however, the immediate issues concern promotional claims for the two infant formulas and the finding relating to Biotin content in a follow-up formula sample.
The proceedings will centre on the alleged non-compliances identified by FSSAI and the company’s response that its products and labels comply with applicable regulations. Nestle India has maintained that the disputed statements are factual and scientifically supported, while the regulator has proceeded with legal action and sought clarification over the infant nutrition marketing claims.
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