More than a dozen food companies including Troovy, Storia and Two Brothers Organic Farms, ran into trouble with India’s food safety regulator FSSAI over misleading claims. A MediaNama analysis found that most of these products continue to be sold on leading quick commerce platforms including Blinkit, Zepto and Instamart with misleading claims intact.
Food companies getting away with misleading claims? Most of the products are still being sold on Blinkit, Zepto, Swiggy Instamart, Amazon Fresh, and Flipkart Minutes, with the same claims that the regulator flagged as misleading.
MediaNama has reached out to Zepto, Blinkit, and Instamart for comments on whether they have received any communication from FSSAI regarding the continued sale of products that it flagged as misleading. This story will be updated if we receive a response.
Brands and products flagged: The Food Safety and Standards Authority of India (FSSAI) on Sunday (June 14, 2026) said it had sent notices to 14 D2C food brands for using misleading branding and deceptive health-related claims.
FSSAI has issued notices to several food business operators (FBOs) for violating provisions of the FSS Act, 2006 regarding misleading brand names, trade names, and product claims… (1)2 pic.twitter.com/CgSVspoQxS
— FSSAI (@fssaiindia) June 14, 2026
Other food business operators (FBOs) which received notices from FSSAI include Neuherbs True Vitamin, Emami Healthy & Tasty, Organic Wisdom, Shine Organic, World of Organic, Iota Water, Healthy Choice Healthy Food for Healthy Life Poha, Health Aid.
Issued under Section 32 of the Food Safety and Standards (FSS) Act, 2006, a notice is the first indication that the regulator has found a company’s claims about a product to be in violation of the law. The company is expected to take remedial measures within the specified period; otherwise, it could face penalties and possible suspension of its licence.
A recent Scroll investigation found that, of the 163 products that were flagged by the regulator for making misleading claims, the earliest dating back to 2022, nearly 120 continue to remain in circulation, often with the same packaging with deceptive claims intact. Some of these cases involve FMCG giants, including Dabur, Britannia, Tata 1mg, and Patanjali.
Under existing law, FSSAI can impose a maximum financial penalty of Rs 10 lakh on companies that fail to comply with its directions. That limit has remained unchanged since 2006, when the FSS Act first came into force. However, this amount is only a fraction of what major food companies can earn from selling products with misleading claims.
Why this matters: Last year, Blinkit overhauled its operating model, shifting from a pure marketplace model to inventory ownership model. Of the 15 products flagged by FSSAI, at least 8 continue to sold with the same misleading claims on Blinkit, with either Blinkit or Hyperpure acting as a seller on record (merchant).
The Food Safety and Standards Act, 2006, does not include a standalone definition of a “seller.” However, Section 27 of the Act explicitly states that a seller can be held liable if the food is “misbranded.”
How should accountability be assigned when a platform like Blinkit serves both as a seller and an online marketplace (intermediary)?
The issue becomes more significant as quick-commerce platforms Swiggy Instamart and Zepto are also looking to pivot to an inventory-led model. Notably, Swiggy’s bid to achieve Indian-Owned and Controlled Company (IOCC) status suffered a setback last month after shareholders opposed a key proposal to amend the company’s Articles of Association.
As foreign-owned entities, Swiggy and Zepto cannot legally operate an inventory-based e-commerce business in India.
Under India’s FDI policy, 100% foreign investment is permitted in marketplace e-commerce businesses, where independent sellers transact with consumers through a platform. However, FDI is not permitted in inventory-based e-commerce, where the platform owns inventory and sells directly to consumers.
According to Sachin Taparia, founder and CEO of LocalCircles, online platforms such as Blinkit, Zepto and Flipkart cannot be held liable for misleading claims by D2C brands.
Where India’s regulator is actually “failing,” Taparia told MediaNama, is in the enforcement of food advertising regulations, with quick-commerce platforms still not displaying products’ “best before” dates.
The alarmingly low level of enforcement of food advertising regulations also raises concerns. The issue was documented in the Economic Survey 2026 as well. In a section on “the challenge of ultra-processed foods,” the survey noted that although several regulations exist to prevent misleading food advertisements, enforcement “leaves much to be desired.”
Broader context: FSSAI has intensified its crackdown on e-commerce and quick-commerce platforms over the past two years.
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