Delhi High Court Stays FSSAI Ban on Energy Drink Labels

The Delhi High Court on Tuesday issued stay orders protecting Reliance Consumer Products Ltd, PepsiCo, Inc., and Monster Beverage Corporation from a June 30 directive by the Food Safety and Standards Authority of India (FSSAI). The regulator had banned the use of the term energy drink on high-caffeine beverage labels, claiming such descriptors and claims like boosts energy levels were misleading.

Justice Amit Mahajan ruled that the companies may sell their existing inventory but are prohibited from manufacturing new products bearing the energy drink label. The court also stayed coercive actions against the firms, following a similar September 29 ruling in favor of Red Bull. The court specifically questioned the FSSAI for failing to provide Reliance with a show-cause notice or a fair hearing before issuing the order, noting it was never too late to correct such a procedural error.

Reliance and other beverage giants reported substantial financial losses and business disruption, noting that state authorities had seized stock and ordered e-commerce platforms to delist products. Reliance specifically highlighted the impact on its Campa brand, while Monster Beverage Corporation reported 30 million units of existing stock. The FSSAI's crackdown is part of a broader national food safety initiative involving raids and new warning-label requirements to address health risks. The court is scheduled to hear Reliance's case again on November 5.