Significant Update

The Food Safety and Standards Authority of India (FSSAI) has barred food companies from using terms such as “100%”, “100% Pure”, and similar absolute claims on food labels, packaging, and promotional materials. The move aims to prevent misleading marketing practices and improve transparency for consumers. While the change may appear minor, industry experts say it could trigger significant compliance costs for food businesses.

More Than a Label Change

According to Rishi Agrawal, CEO and Co-Founder of TeamLease RegTech, companies must do much more than redesign packaging when new labelling rules take effect. Businesses may need to obtain approvals, update artwork, replace printing plates, and print fresh packaging materials across hundreds of product variants. Many companies also hold large stocks of pre-printed packaging and finished products already moving through the supply chain. As a result, they may need to relabel products, clear existing inventory, or write off unused packaging materials before compliance deadlines.

Experts say these changes can cost companies crores of rupees, particularly when inventory losses, operational disruptions, and additional working capital requirements are taken into account.

Industry Welcomes Predictable Timelines

Industry stakeholders have welcomed FSSAI’s efforts to make compliance timelines more predictable. In January 2025, the regulator fixed July 1 as the annual enforcement date for amendments under the Food Safety and Standards (Labelling and Display) Regulations, 2020, while also providing a minimum transition period of 180 days. Experts say fixed implementation schedules help businesses plan packaging updates and reduce financial losses.

Balancing Transparency and Compliance

Despite concerns over costs, industry leaders broadly support FSSAI’s objective of curbing misleading claims. They say consumers deserve claims that are measurable, verifiable, and backed by evidence, while also calling for clear standards and reasonable timelines to help businesses comply smoothly.

Source: NDTV