{"id":391142,"date":"2026-07-23T09:00:13","date_gmt":"2026-07-23T03:30:13","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=391142"},"modified":"2026-07-22T18:15:33","modified_gmt":"2026-07-22T12:45:33","slug":"fssai-food-labelling-misbranding-compliance-analysis","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2026\/07\/23\/fssai-food-labelling-misbranding-compliance-analysis\/","title":{"rendered":"Label to Liability: How India’s Food Giants are Slipping into FSSAI Penalty Zones"},"content":{"rendered":"
\n

An important aspect that many mid-tier fast-moving consumer goods (FMCG) companies overlook is that the failure to follow proper labelling amounts not only to a breach but also misbranding of the food product under FSSA, 2006.<\/p>\n

Statutory framework and the regulatory mandate<\/p>\n

The Food Safety and Standards Act, 2006<\/a> (“the Act<\/a>” or “FSSA<\/a>”) was enacted to bring together and replace the piecemeal approach to food regulation in India with the Prevention of Food Adulteration Act, 1954<\/a> (PFA<\/a>), the Fruit Products Order, 1955 and Vegetable Oil Products (Control) Order, 1947. Section 23<\/a> of the Act<\/a> mandates that food businesses ensure labelling of each pre-packaged food product in line with the regulations.1<\/sup><\/a><\/p>\n

The primary regulation that governs the process of food labelling in India is the Food Safety and Standards (Labelling and Display) Regulations, 2020<\/a> (Labelling Regulations). The Labelling Regulations came into force from 1 January 2023.2<\/sup><\/a> The Labelling Regulations should be read in conjunction with the Food Safety and Standards (Advertising and Claims) Regulations, 2018<\/a> (Claims Regulations) to understand the compliance framework concerning permissible and impermissible label claims.<\/p>\n

An important aspect that many mid-tier fast-moving consumer goods (FMCG) companies overlook is that the failure to follow proper labelling amounts not only to a breach but also misbranding of the food product under the Act<\/a>. Penalties for misbranding as well as provisions regarding seizing of goods in such cases can even extend to criminal action if there is an advertisement element involved.<\/p>\n

The legal definition of “misbranded” and consequential penalties<\/p>\n

The FSSA<\/a> defines misbranded food under Section 3(zf<\/span>)<\/a>. This section is deliberately broad in scope. Food is considered misbranded if: 1) it is sold as another type of food; 2) its label includes a statement, design, or device that is false or misleading; 3) it is not labelled according to the Act<\/a> or the Rules; or 4) it states that it conforms to a standard but fails to do so. Under Section 52<\/a> of the Act<\/a>, the penalty for mislabelling is stipulated.3<\/sup><\/a> Any person manufacturing for sale, storing, selling, distributing, or importing a misbranded food item is liable for a fine of up to Rs 3,00,000 per violation.4<\/sup><\/a> Additionally, the adjudicating authority has the power to take appropriate action or destroy any products that do not comply with the standards.<\/p>\n

If non-compliance occurs in the form of misleading or false advertising, Section 53<\/a> of the Act<\/a> dramatically increases the liability of the non-compliant food operator, imposing a fine of up to Rs 10,00,000.5<\/sup><\/a><\/p>\n

It should be noted that each stock keeping unit (SKU) represents a distinct and independent violation; there is no possibility for a single or combined penalty for multiple SKUs. A food business operator (FBO) with 12 non-compliant SKUs faces a maximum penalty of Rs 36,00,000 under Section 52<\/a>, without considering the cost of recall, licence suspension, and reputational damage.<\/p>\n

In the case where the defaulting FBO is a firm, Section 66<\/a> FSSA<\/a> makes the management personally liable for actions. Courts have consistently ruled in favour of applying this section to company directors and key managerial personnel (KMPs), making label compliance an issue that must be addressed at the Board level.6<\/sup><\/a><\/p>\n

Supreme Court ruling on judicial authority in misbranding<\/p>\n

As far as the misbranding liability is concerned, the issue has been judicially settled by the Supreme Court of India in Manik Hiru Jhangiani<\/span> v. State of M.P.<\/span><\/a>7<\/sup><\/a> on 14 December 2023 by the Bench of Justice Abhay S. Oka and Justice Sanjay Karol.<\/p>\n

Facts of the case related to a visit by a Food Inspector to Bharti Retail Limited Store (Easy Day) at Malhar Mega Mall in Indore on 29 November 2010. During the inspection, it was found that the butter coconut biscuits and mixed fruit biscuits were misbranded. In this case, the issue was whether after the coming into force of Section 52<\/a> FSSA<\/a> on 29 July 2010, the prosecution for committing misbranding could be conducted under the repealed PFA<\/a>.<\/p>\n

It is held in the following words:<\/p>\n

19.<\/span> … In a case where after coming into force of Section 52<\/a> FSSA<\/a>, if an act of misbranding is committed by anyone, which is an offence punishable under Section 16<\/a> PFA<\/a> and which attracts penalty under Section 52<\/a> FSSA<\/a>, Section 52<\/a> FSSA<\/a> will override the provisions of PFA<\/a>.8<\/sup><\/a><\/p>\n

In regard to the constitutional aspect of the case, it was held that the imposition of a penalty under both the PFA<\/a> and FSSA<\/a> for the same act of misbranding would amount to a violation of Article 20(2)<\/a> of the Constitution of India<\/a>. In such a situation, Section 89<\/a> FSSA<\/a> prevailed, and hence, the penal provisions of the FSSA<\/a> applied.<\/p>\n

As far as the implications of the above judicial ruling in the current context are concerned, the following aspects should be taken into account: 1) Section 52<\/a> FSSA<\/a> is the only operative law relating to misbranding cases; 2) the overriding effect of FSSA<\/a> provided under Section 89<\/a> was judicially confirmed; and 3) labelling non-conformity is a statutory offence irrespective of its commercial significance.<\/p>\n

Claims relating to health and nutrition: The most breached area<\/p>\n

Under Regulation 4, Claims Regulations, 2018, only those health or nutritional claims can be made which 1) have been notified by Food Safety and Standards Authority of India (FSSAI) on the approved list, or 2) have sufficient scientific evidence that must be submitted to FSSAI.9<\/sup><\/a> Claims like “immunity booster”, “gut-friendly”, “facilitates digestion”, “guilt-free”, etc., clearly fall under health or nutritional claims as per FSSAI Regulations, and must be substantiated. Such an attempt to interpret the terms loosely has been addressed directly by FSSAI.<\/p>\n

Where an FBO makes any claim regarding health in the context of digital marketing or e-commerce listings (including the Amazon product page), but the claims do not match those appearing on the physical label, then there will be concurrent liabilities on both counts; liability under Section 52<\/a> (for misbranding) and Section 53<\/a> (for misleading advertisement).<\/p>\n

ORS case study: Misbranding as a construct of public health<\/p>\n

The issue relating to the labelling of products as oral rehydration salts (ORS) is an excellent case study that exemplifies the approach of the FSSAI and the court of law regarding the issue of label-based misbranding when it involves an issue of consumer safety.<\/p>\n

The FSSAI has made it abundantly clear that “ORS” is considered as drugs under the Drugs and Cosmetics Rules, 1945 as a World Health Organization (WHO) prescribed composition for treating acute diarrhoea. It comes under Regulation of Drugs Controller General of India. The FSSAI Authority has stated in its clarification that any product carrying labels “ORS”, “ORSL”, “Electro Plus ORS”, or other such labels would amount to “misbranded food”. These acts\/products might be in violation of Sections 23<\/a> and 24<\/a> FSSA<\/a> rendering them liable for punishment under Sections 52<\/a> and 53<\/a> of the Act<\/a>.10<\/sup><\/a><\/p>\n

The Delhi High Court in JNTL Consumer Health India (P) Ltd.<\/span> v. FSSAI<\/span><\/a>11<\/sup><\/a>, while dealing with the issue, took a strict stance on this issue. In the proceedings against direction of the FSSAI which withdrew conditional permission earlier, the court refused to allow the sale of any mislabelled stock of product because health of public should come first above anything else. The Bench observed that “ORS” has saved many lives of children in India and allowing misbranded items would defeat the purpose of good health. Further, in Dr. Reddys Laboratories Ltd.<\/span> v. Union of India<\/span><\/a>12<\/sup><\/a> decided by a Single Bench of Justice Sachin Datta of the Delhi High Court. The petitioner, Dr Reddy’s Laboratories Limited, challenged FSSAI’s Directions dated 14 and 15 October 2025, which had withdrawn all prior conditional permissions for use of the term “ORS” in food product names, branding, or trade marks, thereby directly affecting its oral rehydration beverage sold under the brand name Rebalanz VITORS. The petitioner had initially secured an interim stay from the same court on 17 October 2025; however, that order was clarified by Justice Datta to not constitute a blanket permission for FBOs to continue misbranding their products under the ORS label.<\/p>\n

Not even providing interim relief to manufactures which have been manufacturing and selling their goods for more than two decades, and whose product name has even been registered as a trade mark, affirms the fact that registering a trade mark and selling your goods since long cannot be a defence for mislabelling the product at any point of time.<\/p>\n

Nutritional information: Mandatory prescription<\/p>\n

Under Regulation 5, Labelling Regulations, it is mandatory to provide the information on nutrition values both for per 100 g\/100 ml and per serving. The serving quantity should indicate real usage and cannot be altered in a deceptive manner to give lower values in relation to calories, sugar, fat or sodium per serving. A declaration in regard to a serving size which reflects an inaccurate usage pattern will amount to false representation of the nature of food and would amount to misbranding under Section 3(zf<\/span>)(iii<\/span>)<\/a> FSSA<\/a>.13<\/sup><\/a><\/p>\n

For those engaged in the manufacture and distribution of nutraceuticals and health supplements, FSSAI’s Nutraceuticals Regulations Interim Direction effective from 1 July 2024, reoperationalises certain provisions of the proposed Nutra Regulations, 2022. These Regulations work in conjunction with the general Labelling Regulations thus leading to dual regulation for this particular product category which many FBOs are still unable to bring in line with their labels.<\/p>\n

Enforcement architecture<\/p>\n

Section 36<\/a> FSSA<\/a> empowers Food Safety Officers to take samples of food from the premises of FBOs for lab testing. Under Section 46, tests are carried out in National Accreditation Board for Testing and Calibration Laboratories (NABL) accredited or FSSAI approved labs. The identification of a sample as misbranded leads to a show-cause notice under the FSSA<\/a>.14<\/sup><\/a><\/p>\n

The State Government under Section 68, appoints adjudicating officers who are usually Additional District Magistrates and adjudicates complaints lodged by Designated Officers. In assessing the quantum of penalty, Section 49<\/a> of the Act<\/a> obligates the adjudicating officer to take into account the gravity of the offence, damages suffered by the consumer, history of the offending FBO and the element of carelessness or wilfulness of the violation. Orders issued by the adjudicating officer can be challenged before the Food Safety Appellate Tribunal.15<\/sup><\/a><\/p>\n

A further challenge against the decision of the Tribunal can be made before a Single Judge of the High Court under Section 71(6)<\/a> of the Act<\/a> through civil first appeal. Under Section 42<\/a>, the FSSA<\/a> makes it mandatory to initiate criminal proceedings.<\/p>\n

Conclusion<\/p>\n

India’s biggest food companies are slowly moving into a high-risk regulatory zone where even small mistakes in labelling, claims, or disclosures can lead to big fines, product recalls, and damage to their reputations. The FSSA<\/a> says that misbranding is not just a technical mistake; it is a crime with serious financial and personal consequences. With regulators cracking down more and the courts being very strict, there is much less room for mistakes. Compliance can no longer be a back-end or reactive function. It needs to be a core business priority at the strategic and Board levels to lower risk and make sure the business stays around for a long time.<\/p>\n<\/div>\n\n

*Advocate, Associate, AAA Insolvency Professionals LLP. Author can be reached at: rituraj@aaainsolvency.com<\/a>.<\/span><\/strong><\/p>\n

1.<\/a> Food Safety and Standards Act, 2006<\/a>, S. 23<\/a> — “Packaging and Labelling of Food”.<\/p>\n

2.<\/a> Food Safety and Standards (Labelling and Display) Regulations, 2020<\/span><\/a> (F. No. Std\/SP-08\/A-1-2020\/N-01), re-operationalised vide Direction File No. STD\/SP-08\/A1.2022\/N-01-Part(1) dated 6 October 2022, effective 1 January 2023. FSSAI, New Delhi.<\/p>\n

3.<\/a> FSSA, 2006<\/a>, S. 3(zf<\/span>)<\/span><\/a> — Definition of “Misbranded Food”. See also<\/span>, Food Safety and Standards (Labelling and Display) Regulations, 2020<\/a>, Regn. 2.<\/p>\n

4.<\/a> FSSA, 2006<\/a>, S. 52<\/a> — “Penalty for sub-standard food, misbranded food, food containing extraneous matter”. For the statutory text and adjudication procedure, see<\/span>, FSSA, 2006<\/a><\/span>, Ss. 49<\/a>—67<\/a>, Ch. IX.<\/p>\n

5.<\/a> FSSA, 2006<\/a>, S. 53<\/a> — “Penalty for misleading advertisement”. Penalty extends to Rs 10,00,000. See also<\/span>, Food Safety and Standards (Advertising and Claims) Regulations, 2018<\/a>, Regn. 4.<\/p>\n

6.<\/a> FSSA, 2006<\/a>, Ss. 36<\/a> (sampling), 42 (prosecution), 46 (analysis), 49 (quantum of penalty), 66 (offences by companies), 68 (adjudication), 71(6) (appeals).<\/p>\n

7.<\/a> 2023 SCC OnLine SC 1678<\/a>.<\/span><\/p>\n

8.<\/a> Manik Hiru Jhangiani<\/span> v. State of M.P.<\/span><\/a>, 2023 SCC OnLine SC 1678<\/a>.<\/p>\n

9.<\/a> Food Safety and Standards (Advertising and Claims) Regulations, 2018<\/a>, Regn. 4 — Conditions for making nutritional and health claims, FSSAI, New Delhi. See also<\/span>, FSSAI Advisory on misleading health claims (2023—2024).<\/p>\n

10.<\/a> FSSAI Advisory on use of “ORS” on food and beverage labels: FSSAI Direction dated October 2025; earlier directions dated February 2024 and July 2025. See also<\/span>, “FSSAI Warns Fruit Juice Companies not to Use Term ORS”, The Hans India<\/span> (16-5-2022). Statutory basis: FSSA, 2006<\/a>, Ss. 23<\/a>, 24<\/a>, 52<\/a> and 53<\/a>.<\/span><\/p>\n

11.<\/a> JNTL Consumer Health India (P) Ltd.<\/span> v. FSSAI<\/span>, 2025 SCC OnLine Del 10553<\/a>.<\/p>\n

12.<\/a> 2025 SCC OnLine Del 7909<\/a>.<\/span><\/p>\n

13.<\/a> Food Safety and Standards (Labelling and Display) Regulations, 2020<\/a>, Regn. 5 — Nutritional Information. See also<\/span>, FSSAI Direction dated 17-2-2022 on declaration of RDA on labels; Food Safety and Standards (Labelling and Display) First Amendment Regulations, 2026<\/a>.<\/p>\n

14.<\/a> FSSA, 2006<\/a>, Ss. 36<\/a> (sampling), 42 (prosecution), 46 (analysis), 49 (quantum of penalty), 66 (offences by companies), 68 (adjudication), 71(6) (appeals).<\/p>\n

15.<\/a> FSSA, 2006<\/a>, Ss. 36<\/a> (sampling), 42 (prosecution), 46 (analysis), 49 (quantum of penalty), 66 (offences by companies), 68 (adjudication), 71(6) (appeals).<\/p>\n","protected":false},"excerpt":{"rendered":"

by Ritu Raj*<\/p>\n","protected":false},"author":67011,"featured_media":391143,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[42503,1191],"tags":[110515,110512,110514,110511,110510,110513],"class_list":["post-391142","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-analysis","category-op-ed","tag-fmcg-food-label-compliance-fssai","tag-food-labelling-regulations-2020-legal-analysis","tag-food-misbranding-liability-india","tag-food-safety-and-standards-act-misbranding-penalties","tag-fssai-food-labelling-compliance-india-analysis","tag-fssai-misleading-health-claims-compliance"],"yoast_head":"\nFSSAI Food Labelling and Misbranding Liability | SCC Times<\/title>\n<meta name=\"description\" content=\"Analysis of FSSAI food labelling rules, misbranding liability, and regulatory compliance under the FSSA.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2026\/07\/23\/fssai-food-labelling-misbranding-compliance-analysis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Label to Liability: How India's Food Giants are Slipping into FSSAI Penalty Zones\" \/>\n<meta property=\"og:description\" content=\"Analysis of FSSAI food labelling rules, misbranding liability, and regulatory compliance under the FSSA.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.scconline.com\/blog\/post\/2026\/07\/23\/fssai-food-labelling-misbranding-compliance-analysis\/\" \/>\n<meta property=\"og:site_name\" content=\"SCC Times\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/scc.online\/\" \/>\n<meta property=\"article:published_time\" content=\"2026-07-23T03:30:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/07\/FSSAI-food-labelling-compliance-India-analysis.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"886\" \/>\n\t<meta property=\"og:image:height\" content=\"590\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Editor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Label to Liability: How India's Food Giants are Slipping into FSSAI Penalty Zones\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Editor\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/post\\\/2026\\\/07\\\/23\\\/fssai-food-labelling-misbranding-compliance-analysis\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/post\\\/2026\\\/07\\\/23\\\/fssai-food-labelling-misbranding-compliance-analysis\\\/\"},\"author\":{\"name\":\"Editor\",\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/#\\\/schema\\\/person\\\/84e42bab48238baf12c7e33b3d9761fe\"},\"headline\":\"Label to Liability: How India’s Food Giants are Slipping into FSSAI Penalty Zones\",\"datePublished\":\"2026-07-23T03:30:13+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/post\\\/2026\\\/07\\\/23\\\/fssai-food-labelling-misbranding-compliance-analysis\\\/\"},\"wordCount\":2082,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/post\\\/2026\\\/07\\\/23\\\/fssai-food-labelling-misbranding-compliance-analysis\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/FSSAI-food-labelling-compliance-India-analysis.webp\",\"keywords\":[\"FMCG food label compliance FSSAI\",\"food labelling regulations 2020 legal analysis\",\"food misbranding liability India\",\"Food Safety and Standards Act misbranding penalties\",\"FSSAI food labelling compliance India analysis\",\"FSSAI misleading health claims compliance\"],\"articleSection\":[\"Op Eds\",\"OP. 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