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The company, through its counsel, submitted that the product brand was its registered trademark and hence there was no misleading labelling. (AI-generated image)
The Central Consumer Protection Authority (CCPA) has fined a biscuit company Rs 1 lakh for allegedly mislabelling its biscuits as “whole wheat” in a “prominent” manner when they contained only 19.5 per cent whole wheat and 52 per cent refined flour.
Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra stated that “the assessment of whether a representation is misleading is understood having regard to the overall impression created by the product packaging and the manner in which the representation is prominently presented to the consumer, and not merely on the basis of a qualifying statement appended thereto”.
“The CCPA further observes that a consumer cannot reasonably be expected to neglect the plain and prominent representation on the front of the package merely on account of a disclaimer in hardly noticeable font size directing that the expression does not represent the ‘true nature’ of the product. Such an approach would effectively permit a manufacturer or marketer to make a potentially misleading representation as part of its branding and subsequently seek immunity by characterising the same as a trademark,” the August 28 order read.
According to the CCPA, a news report referred to a video of a social media influencer about the alarm raised over food items claiming to be “healthy”, “natural” and “organic”. The article, as noted by CCPA, highlighted misleading product labels that were different than the ingredient list of the product — for instance, whole wheat biscuits may contain more refined flour than whole wheat, and these products might also be getting consumed in rural areas where the reach of such social media is likely limited.
After watching the video, the CCPA also noticed that multiple products, including the whole wheat Marie biscuits, were highlighted in the video, where the printed labels “prominently” contain representations such as “whole wheat” but the actual composition and ingredients declared on the said products were different. On the basis of the article, the CCPA took suo moto cognisance of the case and started a primary inquiry.
The inquiry stated that biscuit company was marketing and selling its product under the brand name “whole wheat Marie Biscuits”. However, the “whole wheat” that appeared on the label of the product was different from the composition of the product that was given in the list of ingredients printed on the packaging. As per the ingredient list, the product contained only 19.5 per cent of whole wheat, whereas 52 per cent of the product consisted of maida (refined wheat flour). Considering it to be a case of misleading advertisement and violation of consumer rights, the CCPA, on May 7, 2025, issued a notice to the biscuit company.
The company, through its counsel, submitted that the product brand was its registered trademark and hence there was no misleading labelling. They further contended that an ingredient emphasised in the branding in no way meant that the biscuits were entirely made of that ingredient and that they had also given a disclaimer on the front of the pack.
The counsel argued that the term “whole wheat” has been used as part of branding to suggest to consumers that the biscuits were made of whole wheat flour as a key ingredient besides refined wheat flour and to differentiate the biscuit from regular Marie biscuits, which were made up of refined wheat flour only. The counsel urged that the brand had been coined to mean that whole wheat was a key ingredient of “whole wheat Marie” biscuits.
According to the investigation ordered by the CCPA, “the combined effect of the prominent use of the expression ‘wholewheat,’ the visual depiction of wheat on the principal display panel, and the inconspicuous disclaimer materially influence consumer perception. Such packaging amounts to interface interference and constitutes a dark pattern by impairing informed consumer decision-making and influencing consumers‘ transactional choices”.
The CCPA also noted that in common language and regulatory scrutiny, the expression “whole wheat” meant total composition and “not selective exclusivity of a single category of ingredient”. The CCPA was of the view that the test was not the intention of the manufacturer, but the understanding of an average consumer, who would reasonably understand “whole wheat marie biscuit” meant that the product was completely made of atta.
The CCPA observed that the disclaimer that was given on the pack by the biscuit company was “printed in a disproportionately small white font against a blue background, positioned at the extreme corner of the packaging, and arranged vertically from bottom to top, making it inherently difficult for a consumer of normal eyesight to locate, read, and associate with the label of product at the point of purchase”, which was contrary to the word “whole wheat” that was displayed “boldly, in a substantially larger and capitalized font, horizontally and prominently, thereby attracting the consumer’s immediate attention” and creating a clear impression that the product had the qualities ordinarily expected from a product represented as “whole wheat.”
The CCPA held the biscuit company liable for misleading advertisement and unfair trade practice and ordered it to pay a penalty of Rs 1 lakh. The company was further directed to “discontinue false and misleading advertisements with immediate effect from all print/ electronic media, including social media”.