FSSAI Issues Show-Cause Notices to Nestle India and HUL Over Misleading Health Claims and Labelling Violations — October 18, 2026

In an aggressive nationwide regulatory sweep, the Food Safety and Standards Authority of India (FSSAI) has issued show-cause notices to fast-moving consumer goods (FMCG) market leaders Nestle India Limited and Hindustan Unilever Limited (HUL). The statutory food safety regulator flagged multiple popular health and nutritional products for deceptive advertising, non-compliant functional health claims, and missing mandatory package disclosures across retail and e-commerce channels.

The enforcement action comes amid heightened regulatory vigilance over packaged foods, infant nutrition, and dietary supplements, forcing consumer goods companies to defend scientific justifications for their health-oriented marketing campaigns.

Allegations Against Hindustan Unilever

The regulator singled out major offerings within HUL’s Horlicks portfolio, demanding explanations regarding promotional statements made on packaging and digital marketplaces:

• Horlicks Mother's Plus Kesar: The regulator cited potential violations of the Food Safety and Standards (Advertising and Claims) Regulations, 2018. Promotional claims such as "Healthy Birth Weight" on the box and "For baby's healthy birth weight" in advertisements were deemed misleading for implying direct physiological health guarantees without necessary clearances.
• Horlicks Women's Plus Chocolate Nutrition Drink: FSSAI flagged several bold assertions, including "Nutrition for Strong Bones", "Clinically Proven to Help Improve Bone Strength in 6 Months", and "Improves Bone Health". The regulator noted that the phrase "healthy Muscles" breached regulations governing the specific use of the term "healthy".
• Deceptive "No Added Sugar" Label: The packaging claimed "No Added Sugar", which the regulator found potentially misleading given the presence of maltodextrin in the formulation. In addition, claims touting "100 per cent RDA of Calcium, Vitamin D & K2" failed to meet statutory guidelines.

HUL rejected the allegations, stating that its formulations adhere strictly to applicable food safety standards and that the company will submit necessary scientific and regulatory documentation to substantiate its claims within the stipulated time frame.

Violations Flagged at Nestle India

Nestle India was served notices regarding specialised medical and beverage offerings:

• Nestle Resource Renal Vanilla Flavour Powder: Formulated for the dietary management of individuals with chronic kidney disease, this product falls under the Food Safety and Standards (Health Supplements, Nutraceuticals, Food for Special Dietary Use, Food for Special Medical Purpose, and Prebiotic and Probiotic Food) Regulations, 2022. The regulator pointed out that Nestle marketed the product without securing mandatory prior authorization. The product label also omitted the statutory vegetarian or non-vegetarian logo, violating packaging norms.
• Nescafé Ready-to-Drink Lineup: Discrepancies were noted on e-commerce listings for Nescafé Intense Café Cappuccino, Nescafé Choco Mocha, and Nescafé Chilled Latte. The products were improperly classified as "Proprietary Food" despite falling under the standardised "Flavoured Milk" category, contravening the Labelling and Display Regulations, 2020.

Broader Enforcement Across the FMCG Sector

The notices against Nestle India and HUL represent part of an industry-wide crackdown by food safety authorities. Beyond the multinational consumer giants, FSSAI has initiated penal measures against several domestic manufacturers:

• The regulator initiated prosecution proceedings against Surya Food & Agro Ltd, the maker of Priyagold biscuits, after an audit revealed the alleged use of cattle-feed bran as a fibre source in food intended for human consumption.
• Operating manufacturing licences were revoked or suspended for local firms, including M/s Sukhdarshan Pharma and M/s Bala Ji Food Products, over severe hygiene and manufacturing violations.
• Legal scrutiny and inspection notices were also issued to regional dairy and food processors, including Dodla Dairy and Ueir Organic Foods.

Implications for Indian Markets and FMCG Portfolios

For equity investors tracking the Nifty FMCG index, the clampdown signals an era of elevated compliance scrutiny. Over the past few years, packaged food firms have relied heavily on premium "health", "immunity", and "functional nutrition" branding to extract higher gross margins and outpace volume slowdowns in conventional consumer staples.

If regulators enforce stricter curbs on labelling, packaged food majors could face mandatory packaging redesigns, formula adjustments, or temporary product pullbacks from quick-commerce and e-commerce shelves, increasing operational overheads. Failure to satisfactorily respond to FSSAI show-cause notices could lead to penalties, license cancellations, and heightened reputational risks.

Tags: Nestle India Hindustan Unilever FSSAI FMCG Sector Nifty FMCG