The Food Safety and Standards Authority of India (FSSAI) has issued show-cause notices to BigBasket, Flipkart and cooking oil manufacturer Gemini Edibles & Fats India over allegedly misleading health claims used to promote Freedom Cooking Rice Bran Oil.
The regulator questioned claims that the oil “reduces bad cholesterol and maintains/increases good cholesterol” and contains “10,000+ PPM Natural Oryzanol.” According to FSSAI, the cholesterol and heart-health claims were not permitted under the applicable Food Safety and Standards (Advertising and Claims) Regulations, 2018.
The notices ask the companies to explain why action should not be initiated under the Food Safety and Standards Act, 2006. The notices are regulatory proceedings, not a final determination of liability.
Why Did FSSAI Issue Notices to BigBasket and Flipkart?
FSSAI examined promotional material for Freedom Cooking Rice Bran Oil appearing on digital media and e-commerce platforms.
The product was marketed using statements about cholesterol management and its natural oryzanol content. The regulator said the cholesterol and heart-health claims were not covered by the permitted claims for edible vegetable oils under the applicable regulations.
The notices were issued to three companies:
- Gemini Edibles & Fats India: The manufacturer associated with Freedom Cooking Rice Bran Oil.
- BigBasket: The online grocery platform operated by Innovative Retail Concepts.
- Flipkart India: The e-commerce platform involved in the product’s promotion and sale.
The companies have been asked to explain why enforcement action should not be taken against them.
Read the original report from Inc42 and the coverage by The Economic Times.
What Were the Allegedly Misleading Claims About Freedom Rice Bran Oil?
The controversy centres on two promotional statements highlighted by FSSAI.
1. Claims about cholesterol
The product was promoted with the statement that it reduces bad cholesterol and maintains or increases good cholesterol.
FSSAI said these cholesterol and heart-health claims were not permitted under the applicable regulations for edible vegetable oils.
Health-related statements on food products must comply with the relevant rules. Companies cannot assume that a claim is acceptable simply because it appears in an advertisement, product listing or promotional campaign.
2. The “10,000+ PPM Natural Oryzanol” claim
The product was also promoted with a claim referring to more than 10,000 parts per million (PPM) of natural oryzanol.
Oryzanol is a group of compounds naturally associated with rice bran oil. However, a claim about a product’s composition is different from a claim that the product produces a specific health benefit.
The regulator’s notice focused on the claims used to market the oil and their compliance with applicable food advertising rules.
Why Are Health Claims on Cooking Oil Regulated?
Consumers often use information on food labels and online product pages to decide what to buy. Claims relating to cholesterol, heart health and other health outcomes can influence these decisions.
India’s Food Safety and Standards (Advertising and Claims) Regulations, 2018, establish requirements for claims made when advertising and marketing food products.
The rules are intended to prevent misleading, exaggerated or unsupported representations about food. A company making a health-related claim must ensure that it is permitted under the applicable framework and supported where required.
The FSSAI action highlights why food brands and online retailers need to review product descriptions, advertisements and promotional statements carefully.
For more information about food safety requirements, visit the official FSSAI website.
Why Was Gemini Edibles Asked About Its E-Commerce Licence?
Apart from the disputed health claims, FSSAI said Gemini Edibles & Fats India appeared to be offering and selling food products through its own e-commerce website without a valid Central Licence covering e-commerce activities.
This is a separate regulatory issue from the marketing claims associated with Freedom Cooking Rice Bran Oil.
Food businesses must obtain the licences and authorisations applicable to their activities. The requirements can depend on the nature and scale of the business and the type of operation being conducted.
FSSAI has asked the company to explain the apparent licensing issue as part of the regulatory action.
What Does This Mean for Online Grocery Platforms?
The case brings attention to the responsibility of online marketplaces and grocery platforms when displaying food products.
Product pages may include manufacturer descriptions, health-related statements, ingredient information and promotional claims. If those statements are misleading or not permitted, they can raise regulatory concerns.
E-commerce companies therefore need processes to review product listings and address claims that may violate food safety regulations.
The case also comes amid wider regulatory scrutiny of online grocery and quick-commerce businesses.
According to Inc42’s report, FSSAI has been considering dedicated requirements for e-commerce and quick-commerce platforms, including greater online disclosure of product information and clearer accountability for misleading claims.
Any proposed requirements should be distinguished from rules that have already been formally introduced.
Is This Part of a Wider FSSAI Crackdown?
Yes, the notices come amid broader regulatory action involving online food retail.
Recent reports have described enforcement activity involving several e-commerce and quick-commerce platforms over alleged misleading claims, prohibited products and other food safety concerns.
State-level authorities have also carried out inspections of warehouses and dark stores, with some businesses facing licence suspensions or other enforcement measures for reported non-compliance.
These actions indicate increased regulatory attention to how food products are stored, advertised and sold online. However, each case involves its own facts and regulatory process.
The notices concerning Freedom Cooking Rice Bran Oil specifically address the disputed promotional claims and the separate licensing issue identified by FSSAI.
What Happens After a Show-Cause Notice?
A show-cause notice asks a company to explain why regulatory action should not be taken against it.
The companies can respond to the concerns raised by the regulator. Authorities then consider the applicable law, the evidence and the explanations submitted before deciding what action, if any, is warranted.
Depending on the findings and the relevant legal provisions, consequences can include directions to correct or withdraw claims, penalties or other regulatory measures.
The notices against Gemini Edibles, BigBasket and Flipkart should not be treated as proof that final penalties have already been imposed in this particular case.
FSSAI Notices to BigBasket and Flipkart: Frequently Asked Questions
1. Why did FSSAI issue notices to BigBasket and Flipkart?
FSSAI issued show-cause notices over allegedly misleading health claims used to promote Freedom Cooking Rice Bran Oil on digital platforms and e-commerce storefronts.
2. Which cooking oil is involved in the case?
The product is Freedom Cooking Rice Bran Oil, associated with manufacturer Gemini Edibles & Fats India.
3. What claims did FSSAI question?
The regulator questioned claims that the oil reduces bad cholesterol, maintains or increases good cholesterol, and contains more than 10,000 PPM of natural oryzanol.
4. Has FSSAI imposed a final penalty on BigBasket and Flipkart in this case?
The reported action concerns show-cause notices asking the companies to explain why action should not be taken. A notice is not the same as a final penalty or determination of liability.
5. Why was Gemini Edibles also issued a notice?
In addition to the product claims, FSSAI said the company appeared to be selling food products through its own e-commerce website without a valid Central Licence covering e-commerce activities.
6. What are the Food Safety and Standards (Advertising and Claims) Regulations, 2018?
These regulations govern claims made in food advertising and marketing. They set requirements intended to prevent misleading or unsupported representations about food products.
7. Can consumers still buy Freedom Cooking Rice Bran Oil?
The reported notices concern the claims and licensing issues. The article does not establish a blanket ban on the product. Consumers should check current official updates for any subsequent regulatory directions.
8. Where can I find official food safety updates in India?
Consumers can visit the FSSAI official website for regulatory announcements and food safety information.
Final Takeaway
FSSAI has issued show-cause notices to Gemini Edibles & Fats India, BigBasket and Flipkart over the marketing of Freedom Cooking Rice Bran Oil. The regulator questioned the product’s cholesterol-related health claims and separately raised a licensing concern about Gemini Edibles’ own e-commerce website.
The case highlights the importance of accurate food advertising and proper licensing for businesses selling products online. The next step depends on the companies’ responses and the regulator’s subsequent decisions.
