Food labels have become one of the most powerful marketing tools in India’s packaged food industry. A few carefully chosen words such as “premium”, “natural” or “vegetarian” can shape consumer perception in seconds.
The Food Safety and Standards Authority of India (FSSAI) now appears determined to ensure those claims withstand regulatory scrutiny.
Its latest show-cause notices to Lotte India, Ferns N Petals and other food businesses suggest that enforcement is increasingly extending beyond food safety to the way products are presented to consumers.
Labels Become Regulatory Focus
According to Storyboard18, FSSAI has issued show-cause notices to Lotte India, Ferns N Petals, Kuberra Foods and several other food businesses over alleged misleading claims and labelling deficiencies.
The companies have been asked to explain within seven days why regulatory action should not be initiated under the Food Safety and Standards Act, 2006, and related regulations.
The notices relate to specific product claims that FSSAI believes may not comply with existing food standards. Among them, the regulator questioned Lotte India’s use of the claim “100% Vegetarian” on certain Choco Pie products and the naming of Fruitz Eclairs, which it believes could create the impression that the product contains fruit.
Ferns N Petals was asked to explain its use of the term “Premium Chocolate” for a product containing hydrogenated vegetable fat, while Kuberra Foods received notices over claims such as “100% Natural” and “No Preservatives, Colours & Flavours” despite ingredients declared on the product label.
Since FSSAI has only issued show-cause notices, these observations remain allegations at this stage. The companies have the opportunity to submit their responses before any final decision is taken. This distinction is important because a show-cause notice marks the beginning of a regulatory process rather than proof of wrongdoing.
Enforcement Beyond Food Safety
The latest action reflects increasing regulatory attention on how food products are marketed to consumers.
While food safety enforcement has traditionally focused on manufacturing standards, hygiene and product quality, recent actions indicate that FSSAI is also closely examining whether product labels and marketing claims accurately represent what consumers are buying.
This approach was also evident in June when FSSAI issued notices to several beverage companies over the use of the term “energy drink”.
The regulator said there is currently no notified standard for products marketed as “energy drinks” under its regulations and cautioned companies against using product names or functional claims that could mislead consumers.
Together, these actions suggest that regulators are placing greater emphasis on ensuring that labels and promotional claims accurately reflect product characteristics rather than relying solely on compliance with manufacturing and safety standards.
Why Brands Should Care
For food companies, packaging is more than a compliance requirement. It is often the first point of interaction between a product and a consumer.
Terms such as “premium”, “pure”, “healthy” and “natural” can significantly influence purchasing decisions. As regulatory scrutiny increases, companies may need to strengthen internal legal and regulatory reviews before introducing new packaging, product names or advertising campaigns.
The implications extend beyond established brands. India’s growing ecosystem of food startups, many of which position themselves around wellness, clean ingredients and premium offerings, could also face greater expectations to ensure that marketing claims are supported by evidence and remain compliant with applicable regulations.
Although stronger compliance requirements may increase costs, consistent enforcement can also encourage greater transparency across the industry and help reduce ambiguous or exaggerated product descriptions.
Consumer Trust Takes Centre Stage
The latest notices reinforce an important message for India’s food industry: compliance does not end with manufacturing quality.
As consumers become increasingly conscious of ingredients, nutrition and product transparency, labels are becoming an integral part of the product experience rather than merely its packaging.
FSSAI’s recent enforcement suggests that regulators are placing greater emphasis on ensuring marketing claims accurately reflect what consumers are buying. Whether the current notices ultimately lead to penalties or corrective action will depend on the companies’ responses and the regulator’s final findings.
For businesses, the immediate challenge is regulatory compliance. The longer-term opportunity lies in building consumer trust through accurate, transparent and verifiable communication. In an increasingly competitive packaged food market, credibility may become just as valuable as brand recognition.
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