E-Commerce Companies Restricted from Selling Products under Health and Energy Drink Names

The Food Safety and Standards Authority of India (FSSAI) has issued directives to e-commerce companies, restricting them from selling various juices and beverages under the names of health and energy drinks. According to the new guidelines, e-commerce websites are required to properly segment all food products available for sale.

Government and FSSAI Crack Down on Misleading E-Commerce Drink Sales

The decision comes amidst concerns raised by the government and FSSAI regarding the misleading marketing practices of certain e-commerce platforms. FSSAI has instructed all e-commerce companies to refrain from selling any kind of juice or beverage under the guise of health or energy drinks. This move aims to prevent consumer confusion by ensuring that products are accurately categorized.

Major beverage companies like Coca-Cola, PepsiCo, and others have been found selling their energy drinks at higher rates compared to other brands like Red Bull and Monster. These drinks are readily available at grocery stores, with energy drink sales witnessing a significant increase of approximately 50% annually. The growing consumption of these beverages, particularly among the youth, has raised concerns due to various health risks associated with their excessive consumption.

FSSAI Implements Stricter Rules: E-Commerce Platforms Barred from Mislabeling Health Drinks

FSSAI has expressed serious concern over this issue and emphasized the importance of accurate product segmentation by e-commerce companies. Under the proprietary food license, e-commerce platforms are now prohibited from selling grain-based, dairy-based, or malt-based products under the labels of health or energy drinks. FSSAI clarified that these products must be categorized separately, as they do not fall under the definition of health drinks as per the FSS Act 2006.

This directive aims to ensure consumer safety and prevent misleading marketing practices in the e-commerce sector. By enforcing stricter regulations, FSSAI seeks to promote transparency and accountability among e-commerce platforms, ultimately safeguarding the interests of consumers.