Delhi HC sets aside FSSAI order directing Red Bull India to drop ‘energy’ from drinks

The Delhi High Court has overturned an order by the Food Safety and Standards Authority of India (FSSAI) that required Red Bull India to remove the term "energy" from its drinks. Justice Amit Mahajan allowed Red Bull India's petition, primarily on the basis that the natural justice principle was violated. However, the court gave FSSAI permission to reconsider its decision after issuing a show-cause notice to the company and offering it a chance to present its case.

The court also made clear that FSSAI would be able to issue a new order following proper legal procedures. Red Bull had appealed to the High Court, arguing that FSSAI had not provided a show-cause notice or allowed them to be heard before the regulator issued the order. The issue arose from FSSAI's July 1 directive to Red Bull, Sting, Adrenaline Rush, Campa Gold Boost, Hell Energy, and Monster to stop using the word "energy" on their labels, marketing, and advertisements within 90 days.

The regulator claimed it did not recognize "energy drink" as a category, citing the lack of defined standards. It also worried that statements like "vitalises body and mind" could mislead consumers. At a meeting with beverage companies on July 24, FSSAI proposed labeling the products as "caffeinated beverages" instead. Some industry representatives opposed this suggestion, arguing that it was too broad and could include a wide range of products, potentially confusing consumers.

The industry also pointed to FSSAI's April 2024 communication, which allowed the term "energy drinks" for products licensed as "caffeinated beverages." FSSAI had previously set caffeine limits for such drinks and required specific label disclosures. The Indian Beverage Association, which includes Red Bull, PepsiCo, and Reliance among its members, has called for a "consultative and risk-based approach" before enforcing any changes, stating that companies should have the opportunity to present their technical and legal arguments before enforcement actions are taken.