Patanjali Ayurved, one of India’s most prominent FMCG brands, and its founder Baba Ramdev are currently navigating multiple legal and regulatory challenges. These issues highlight concerns about product safety, advertising ethics, and health claims. Here is an in-depth look at the major cases and controversies surrounding the brand and its key figures.
FSSAI orders product recall of red chilli powder
The Food Safety and Standards Authority of India (FSSAI) has ordered the recall of a specific batch of Patanjali’s red chilli powder. The batch in question, identified as AJD2400012, was found to be non-compliant with the Food Safety and Standards (Contaminants, Toxins, and Residues) Regulations, 2011. This directive came after the product reportedly failed to meet safety and quality standards.
Product recalls are significant because they impact consumer trust and bring attention to the safety protocols of the company. In such cases, companies are required to remove the entire batch from retail and provide clarification to the regulatory body. While Patanjali has not yet issued a public statement addressing the recall, the incident has raised questions about the company’s quality control measures. As per media reports, this development could impact investor sentiment and lead to volatility in the company’s stock performance.
Misleading health claims and legal troubles
Baba Ramdev, Acharya Balkrishna, and Divya Pharmacy, Patanjali’s marketing arm, are under scrutiny for allegedly making misleading health claims. Advertisements for Patanjali products have claimed to cure various health conditions, including diabetes, high blood pressure, obesity, and even Covid-19. These claims have been accused of violating the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954.
In October 2024, a case was registered in Kerala against Baba Ramdev and others for these allegations. On January 16, 2025, the Judicial First Class Magistrate in Palakkad issued a bailable arrest warrant when the accused failed to appear in court. The next hearing is scheduled for February 1, 2025. Legal experts suggest that the outcome of this case could set a precedent for how unverified health claims are treated in India.
This is not the first time Patanjali has faced criticism for its advertisements. In the past, similar claims about curing Covid-19 with Patanjali’s Coronil product stirred controversy and attracted regulatory action. Despite the backlash, Patanjali’s aggressive marketing strategies have continued to draw attention, both positive and negative.
The Dabur India lawsuit
Patanjali’s advertising practices have also led to a legal confrontation with Dabur India, another leading FMCG company. The issue stems from an advertisement for Patanjali’s chyawanprash, in which it claimed to use 51 herbs compared to Dabur’s 40 herbs. Additionally, the advertisement suggested that Dabur’s chyawanprash contained mercury and was unsafe for children.
Dabur India has accused Patanjali of crossing ethical boundaries and tarnishing its brand reputation. The claims made in the advertisement are alleged to be false and misleading, prompting Dabur to take legal action. The lawsuit underscores the competitive tensions in India’s FMCG market, where brands frequently engage in comparative advertising. However, experts caution that such practices must remain within the bounds of fair competition and avoid disparaging competitors.
A pattern of misleading advertisements
Patanjali has been flagged multiple times for making unverified claims in its advertisements. This pattern raises broader concerns about the company’s adherence to advertising and regulatory guidelines. The brand’s marketing approach often relies on traditional and Ayurvedic claims, which resonate with its target audience but frequently come under regulatory scrutiny.
For instance, during the Covid-19 pandemic, Patanjali launched its Coronil product, claiming it to be a cure for the virus. The claims were widely criticised by medical professionals and regulatory bodies, leading to significant controversy. Although the company eventually clarified its stance and marketed Coronil as an immunity booster, the episode highlighted the risks associated with making unverified claims.
Implications for Patanjali and the FMCG Market
The ongoing legal and regulatory challenges faced by Patanjali could have significant implications for its brand image and market performance. Product recalls and lawsuits not only affect consumer trust but also draw attention to gaps in compliance and quality control.
The FMCG market in India is highly competitive, with brands like Dabur, Himalaya, and Baidyanath offering similar Ayurvedic and herbal products. Regulatory compliance and advertising ethics are critical in maintaining a competitive edge and ensuring long-term success. Experts believe that Patanjali’s ability to address these challenges transparently and effectively will determine its future trajectory.
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