Honasa Consumer Ltd, the parent company of Mamaearth, filed a lawsuit against Hindustan Unilever Ltd (HUL) over a Lakmé sunscreen advertisement that allegedly disparaged Honasa’s The Derma Co. products.
The Delhi High Court did not issue an injunction but facilitated a mutual agreement: HUL voluntarily agreed to modify the advertisement by removing references to competitors, changing the product packaging color from orange to light yellow, and replacing the phrase “online bestseller” with “some sellers.” Both parties agreed to take down online and physical ads within 24 to 48 hours.
Legal Dispute Over Disparaging Advertisement
The controversy centers on Lakmé’s “SPF Lie Detector Test” ad campaign launched in April 2025, which claimed that sunscreens marketed as SPF 50 actually provide protection closer to SPF 20. Although the ad did not explicitly name any brand, it featured packaging colors closely resembling The Derma Co’s distinctive yellow branding, prompting Honasa to file a lawsuit in the Delhi High Court. The ad was viewed as a subtle but pointed critique of competitors.
Honasa argued that the campaign misled consumers and unfairly undermined trust in its sunscreen products. HUL defended the campaign as an effort to promote transparency and consumer awareness about SPF efficacy. The High Court noted that the ad appeared disparaging but allowed HUL to continue the campaign after making the agreed modifications.
💡 SPF, or Sun Protection Factor, measures protection against UVB rays. SPF 20 provides moderate coverage suitable for short-term sun exposure, while SPF 50 offers high protection ideal for extended outdoor activities.
Background of the Dispute
The issue gained public attention after Honasa co-founder Ghazal Alagh criticized the Lakmé campaign on social media, accusing it of targeting The Derma Co. In response, HUL filed a defamation case in the Bombay High Court, claiming Honasa’s actions unfairly harmed the Lakmé brand. Both courts facilitated a parallel settlement, with both parties agreeing to withdraw their respective online and physical advertisements and social media posts referencing each other within stipulated timeframes.
What’s Next?
A settlement has been reached between the two parties, though further hearings are scheduled. Both brands have committed to complying with the court’s directions and removing all disparaging materials, including online posts and hoardings.
The Logical Indian’s Perspective
This legal clash between Honasa Consumer and Hindustan Unilever highlights the intensifying competition in India’s skincare and sunscreen market, especially between established FMCG giants and emerging digital-first brands. The Logical Indian emphasizes that while brands strive for visibility and market share through aggressive marketing, ethical advertising and factual accuracy must remain paramount to protect consumer interests.
The case underscores the need for clearer regulations and stricter oversight on advertising claims, particularly in categories like sunscreens where misleading information can have direct health implications. Consumers are encouraged to critically evaluate product claims and seek transparency from brands to make informed choices. The ongoing dispute also reflects a broader shift in the Indian FMCG sector, where newer brands challenge traditional players to innovate and maintain higher standards of honesty and scientific backing in their marketing.
