The Food Safety and Standards Authority of India (FSSAI) has initiated legal proceedings against FMCG giant Nestle India, citing alleged non-compliance in the promotion and formulation of several of its infant nutrition products. The regulatory body’s investigation uncovered promotional claims on product labels and advertising materials that failed to meet prescribed labeling norms for infant foods.
Key Violations Identified by FSSAI
The FSSAI's scrutiny focused on specific marketing assertions made by Nestle India. Regulators highlighted claims related to "5 HMOs" (Human Milk Oligosaccharides) and "easy-to-digest whey" proteins prominently featured on products such as NAN Excella Pro Stage 1 and Lactogen Pro 1. These promotional tactics were deemed to violate Regulation 4(2) of the FSS (Foods for Infant Nutrition) Regulations, 2020, which restricts promotional material designed to boost the saleability of infant foods.
Furthermore, the investigation found that Nestle's marketing practices for these products also contravened Section 3 of the Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992. This act imposes strict prohibitions on the advertisement and promotion of infant milk substitutes and infant foods.
Formulation Issues and Biotin Content
Beyond promotional claims, the FSSAI's dragnet expanded to include structural formulation issues. Laboratory testing of a sample of Nestle India’s Follow-up Formula revealed sub-standard Biotin content. A subsequent re-analysis by a Referral Laboratory confirmed that the sample did not conform to the prescribed Biotin standards mandated under the 2020 Infant Nutrition Regulations. This indicates a breach of broader formulation parameters across select batches of the company's infant product lineup.
Legal Action and Market Impact
In response to these findings and the series of contraventions, the FSSAI has formally launched three separate adjudication cases against Nestle India Limited, covering all three flagged products. Following the news of the regulatory action, shares of Nestle India experienced a nearly 2% drop during trading, as investors reacted to potential brand erosion, legal liabilities, and increased regulatory scrutiny facing the company's core nutrition vertical.