Delhi High Court Stays FSSAI Ban on Energy Drink Labels

The Delhi High Court has stayed a Food Safety and Standards Authority of India (FSSAI) order that prohibited PepsiCo, Monster Beverages, and Reliance Consumer Products Ltd from using the 'Energy Drink' descriptor on their products. The interim relief, granted by Justice Amit Mahajan, permits the sale of existing stock carrying the label but bans the manufacture of new products with the disputed description until the next hearing on November 5.

This dispute centers on FSSAI’s actions regarding the labeling of certain caffeinated beverages. The regulator's June 30 directive ordered manufacturers of high-caffeine beverages sold as 'energy drinks' to stop using that description. A follow-up communication on July 17 instructed food safety commissioners across all states and union territories to enforce the order, which included the seizure of products. Companies challenged these directions, arguing they were issued without a show-cause notice or a fair opportunity for a hearing.

Court Questions Procedural Fairness

During hearings this month, the court sharply questioned FSSAI's procedure. Justice Mahajan noted the directive was issued without prior notice. "It was never too late for the regulator to rectify its mistake," the court observed. For Reliance Consumer Products, which markets Campa Energy Drink, Gold Boost, the legal team argued the abrupt directive caused significant business disruption. State authorities had seized some stock, and e-commerce platforms were instructed to delist the products. The company stated that the directive had exposed a large amount of finished stock and packaging to the risk of becoming unusable.

Senior Advocate Sandeep Sethi, representing PepsiCo, argued the company held a valid licence to manufacture its products, which include Sting Energy and Adrenaline Rush. He submitted that any concession to remove the 'Energy Drink' descriptor was made under protest. Monster Beverages, which sells Monster Energy, was represented by Advocate Sandeep Das in its separate challenge.

Industry Agreement and Ongoing Scrutiny

A new layer of complexity emerged during proceedings. Advocate Suransh Chaudhary, representing FSSAI, informed the court that a meeting with an industry body was held in July after the directions were issued. He said the industry body had agreed to remove the 'Energy Drink' descriptor. This development was not disclosed during earlier court proceedings concerning Reliance's Campa or a separate case involving Red Bull, which has also obtained relief. Justice Mahajan noted that since orders were already passed in those cases, FSSAI could file appropriate applications to seek corrections.

The court's stay suspends both the June 30 direction and the related July 17 enforcement communication for the duration of the proceedings. This action is part of a broader regulatory push for tighter scrutiny of food and beverage labeling. The outcome could set a precedent for the entire industry.

Products and Companies Affected

The interim relief applies specifically to the following companies and their challenged products:

Red Bull has separately obtained court relief permitting it to continue using the 'energy drink' description. The High Court continues to hear similar cases involving other beverage companies. The matter is listed for hearing on November 5, when the Delhi High Court will review the interim relief and consider further submissions on the FSSAI directive’s validity.