Reliance Gets Delhi High Court Relief Over Campa ‘Energy Drink’ Labelling
Reliance Industries has obtained interim relief from the Delhi High Court in its case against FSSAI over the usage of “energy drink” on Campa products. The court questioned the decision making process of the FSSAI and let Reliance Consumer Products to continue selling Campa as an energy drink.
In the ongoing dispute between Reliance Industries and the Food Safety and Standards Authority of India (FSSAI) regarding the use of the word "energy drink" on its Campa products, the Delhi High Court has granted temporary respite. Continued marketing of Reliance's Campa brand products as "energy drinks" was permitted by the court on October 6th.
Reliance was able to get some respite after contesting an FSSAI order from June 30. FSSAI has already issued a directive to the manufacturers of caffeinated drinks marketed as "energy drinks" to discontinue the use of the term. The beverage division of Reliance, Reliance Consumer Products, contested the ruling earlier this month, claiming that it had an adverse effect on the company's operations.
Why Delhi HC Rolled the Decision in Reliance’s Favour?
At today's hearing, the Delhi High Court cast doubt on FSSAI's decision to issue the order without first notifying Reliance. It was "never too late" to fix the agency's error, the judge warned them. November 5 is the date of the next hearing in this matter. 168 million cans and 120 million plastic bottles of completed inventory bearing the "Energy Drink" label were in the possession of Reliance Consumer Products. In addition to the 400 million cans and 360 million bottles with the same branding, it had them pre-printed, as stated in its October filing. Some of the company's stock was confiscated by state officials, and the e-commerce platforms were instructed to remove it, according to the company. The company claimed that this had resulted in "substantial disruption" to how it did business. The regulator's action is being challenged by more than just Reliance.
Last week, PepsiCo and Monster Beverage took legal action against FSSAI in relation to the announcement. The Austrian company Red Bull was likewise able to keep using the term "energy drink" after successfully obtaining a court injunction. On the same day, PepsiCo and Monster Beverage will present comparable arguments to the Delhi High Court. Reliance, meantime, can keep using the "energy drink" name thanks to the court's interim relief, which will keep them going until the matter is heard again.
FSSAI Plans for Front-of-Pack Labelling Rules
FSSAI has suggested a one-stage implementation of the framework for front-of-the-pack warning labels (FoPL). Companies producing food will be obligated to post warning labels on the front of their packaging once the proposed framework is put into effect. They must take this action if their products include more than the allowed levels of added sugar, fat, or salt, which are the nutrients that cause concern. Following its notification, it plans to offer packaged food producers a year to voluntarily shift to the front-of-the-pack labelling structure.
