The Food Safety and Standards Authority of India (FSSAI) has launched an intensified crackdown on companies over alleged violations of food safety, labelling, and advertising norms, with the regulator issuing notices to dozens of food and wellness brands in recent months. According to Business Standard, the catalyst is a regulator that has become far more active, with FSSAI questioning health and nutrition claims on products ranging from protein-rich foods to electrolyte drinks. The authority has served notices to direct-to-consumer companies such as The Health Factory and Troovy, while also targeting established brands like Heritage Foods and Cipzer Nutraceuticals. In a notice to Heritage Foods, FSSAI stated that the claim 'Fresh Paneer' does not satisfy conditions stipulated under Schedule V, while the use of 'Healthy' in the trademark 'Healthy Happiness' does not comply with FSSAI regulations. The Food Safety and Standards (Labelling and Display) Regulations, 2020 prohibit labels that are 'false, misleading or deceptive' or likely to create an 'erroneous impression' about a product, while requiring labels to indicate the 'true nature' of the food.
Food companies are quietly rewriting their labels after coming under FSSAI scrutiny over misleading claims. The Whole Truth has replaced its previous claim of 'No Added Sugar' with '55% Cocoa, 45% Dates' on its dark chocolate bars, while also removing 'Natural' and 'No Preservatives' from several products. According to founder Shashank Mehta, the company has replaced those terms with descriptions based on ingredients and composition to avoid language that could be interpreted differently by consumers or regulators. Heritage Foods has dropped the word 'Fresh' from its paneer packs after FSSAI questioned the claim, as the regulator stated the use of 'Fresh' could mislead consumers because it is not recognised as part of the prescribed food standard for paneer. The regulator's action has extended beyond individual brands, with Le Casa receiving a notice over describing its hazelnut spread as 'All Natural', Healthy Master and Troovy questioned over the use of 'Healthy' on products, and The Healthy Factory coming under scrutiny for using 'Zero Maida' in its branding despite products containing wheat gluten. The regulator has also directed food companies not to use terms such as '100%', '100% Pure', '100% Natural' and similar expressions on food labels if they are likely to mislead consumers.
Consumer purchasing behavior reveals the importance of health claims in food decisions. In a Mint survey of approximately 50 respondents, 90% said they had bought a packaged food product because of a health claim on the label, with most purchasing such 'better-for-you' foods regularly. Nearly two-thirds said they would be less likely to buy the product if those claims disappeared. The shift is already visible in how brands describe ingredients, with companies like Nutty Gritties consciously choosing to label products as having 'No Added Refined Sugar' instead of broader claims. As reported by Mint, brands are refining product messaging to place greater emphasis on ingredient quality, nutritional transparency and accurate labelling. The timing is significant as India's wellness food market, estimated to be worth more than ₹60 billion, has exploded over the past five years, with brands like The Whole Truth, Yoga Bar, Eat Better, Daily Punch, and The Func Lab built around the promise that packaged food could be healthy.
The regulatory crackdown has significantly increased compliance costs across the industry. Daily Punch's Kumar reports the company has increased investment in regulatory compliance by 10-20% over the past year, with additional spending on laboratory testing, packaging reviews, regulatory documentation and compliance support. The Func Lab's Kukreja says the company now spends ₹50-70 lakh annually on testing, scientific validation, regulatory compliance and quality assurance, compared with ₹10-20 lakh that emerging wellness brands typically spent a few years ago. Fast&Up India's Kamat reports the company increased its compliance budget by 30-40% over the last year. The surge in demand for compliance agencies and testing laboratories is evident, with Equinox Labs reporting requests for label reviews jumped by about 40% in the three months following FSSAI's recent enforcement actions. According to Business Standard, several companies have started reviewing packaging, labels and promotional material after receiving notices, with the regulator questioning Cipzer's use of 'FSSAI Approved' on nutraceutical products, stating the phrase could create the impression that FSSAI certifies or endorses individual products.
The regulatory changes are driving fundamental shifts in how food companies approach marketing and compliance. Companies are becoming more conservative about language use, preferring evidence-based statements over broad wellness claims, as reported by Mint. The Func Lab's Kukreja notes they have become 'more conservative about the language we use, preferring evidence-backed statements over broad wellness claims'. The regulator's tougher stance has triggered a surge in demand for compliance agencies, with BettrLabs reporting more than 50 brands signed up over the past month to validate their product portfolios against FSSAI norms. Industry experts believe the regulator is becoming less willing to accept superficial corrections, with Equinox Labs' Bhadri noting that 136 of the 163 products examined in FSSAI's March 2024 review had been flagged previously for compliance gaps, indicating the existing model of voluntary correction hasn't led to lasting behavioral change. The regulator has also questioned energy drink manufacturers including Red Bull, Sting, Hell and Adrenaline Rush earlier this year, asking them to remove or justify claims relating to increased energy and improved focus, as there is no separate regulatory category recognising 'energy drinks' carrying such therapeutic or functional claims.
