The Delhi High Court set aside FSSAI’s June 30 order directing Red Bull to discontinue the “energy drink” label, citing a violation of principles of natural justice.
The court said FSSAI can reconsider the matter after issuing a proper show-cause notice and giving Red Bull an opportunity to respond.
Red Bull argued that it had used the “energy drink” descriptor in India since 2002, while the wider regulatory action also affected other major high-caffeine beverage brands.
Delhi HC Sets Aside FSSAI Order Directing Red Bull To Drop ‘Energy Drink’ Label
The Delhi High Court has set aside an FSSAI order directing Red Bull to stop using the term “energy drink”, ruling that the company was not given an adequate opportunity to respond before the regulator acted
Summary
The Delhi High Court on Tuesday set aside an order of the Food Safety Standards Authority of India (FSSAI) directing Red Bull to stop using words ‘energy drink’ on its product.
Justice Amit Mahajan passed the order while noting that the FSSAI passed the order without giving any opportunity to the company to file a reply or give any explanation.
Why Did FSSAI Act Against Red Bull?
“The petition is allowed. The impugned order (of FSSAI) is set aside. The respondent is at liberty to pass a fresh order after according a hearing to the petitioner,” the court said while dictating the order and noted that principles of natural justice have been violated.
The court added that it remained undisputed that the June 30 order of FSSAI directing petitioner Red Bull to not use the term ‘energy drink’ in its product was passed without giving any opportunity to it to file any reply.
It further said that FSSAI is free to take a fresh decision in the matter after following due process by issuing a show cause notice to Red Bull and granting it an opportunity of hearing.
The court was informed by FSSAI that no separate show cause notice was given and that the June 30 letter itself was a notice and that the concern was only with the use of the words ‘energy drink’, and not with the product itself.
The court did not examine the merits of whether Red Bull's product violates the FSSAI Act or applicable regulations. Its ruling was limited to the procedure followed by the regulator, allowing FSSAI to reconsider the matter after giving the company an opportunity to respond.
Advertisement
What Did The Delhi High Court Rule?
The court passed the order on a plea by Red Bull challenging a June 30 order of FSSAI directing the company to discontinue using term ‘energy drink’ on its beverage products.
The court, therefore, allowed Red Bull’s petition challenging the FSSAI's June 30 order, on the limited ground that natural justice principles had been violated.
The petitioner company submitted that it had been using the ‘energy drink’ descriptor for its beverage products in India since 2002 and that FSSAI had itself previously recognised its use for the relevant category of caffeinated beverages. Red Bull's India unit had argued that the abrupt prohibition, without any change to the underlying product standard, created substantial regulatory uncertainty and adversely affected its existing and planned commercial investments.
The June order was part of a wider FSSAI action against the use of the term “energy drink” for high-caffeine beverages. The move affected major brands including Pepsi, Monster Beverage, Red Bull and Reliance, which argued that removing the descriptor could affect products whose branding had been built around energy-related claims.
Advertisement
The dispute comes as India's energy-drink market continues to expand, with the sector expected to be worth about $1.6 billion by 2028, according to Reuters. Energy drinks have also faced increased scrutiny from regulators in several countries over their caffeine, sugar and taurine content.
Published At: