Honasa sues HUL over Lakmé ad smearing Derma Co.

New Delhi: In a dramatic escalation of the ongoing "sunscreen skirmish" in India’s booming beauty market, Honasa Consumer Ltd., the parent company of Mamaearth and The Derma Co., has filed a lawsuit against Hindustan Unilever Ltd. (HUL) in the Delhi High Court. 

The case centers on a Lakmé advertising campaign that Honasa alleges disparages its Derma Co. sunscreen products. Justice Amit Bansal, presiding over the initial hearing, remarked, “This advertisement, on the face of it, is disparaging.”

The dispute erupted following Lakmé’s recent high-profile campaign for its Sun Expert SPF 50 sunscreen, which claimed that many digital-first brands, including top online sellers, falsely advertise SPF 50 protection while delivering as low as SPF 20. 

The ad emphasized Lakmé’s use of in-vivo testing—a globally recognized method involving human trials—as the gold standard for sunscreen efficacy. Honasa, led by co-founder Ghazal Alagh, took issue with the campaign, arguing it unfairly targets The Derma Co., which has long championed in-vivo testing for its SPF 50 sunscreens.

In a LinkedIn post that sparked widespread attention, Alagh welcomed Lakmé to the “SPF 50 club” while accusing HUL of complacency in the fast-moving consumer goods (FMCG) sector. She further alleged that Lakmé’s 9 to5 Sun Expert sunscreen copied The Derma Co. 's formulations and packaging, though a subsequent post making these claims was deleted.

 Honasa also placed a provocative billboard next to a Lakmé ad, reading, “Hey Lakmé, congratulations on finally getting SPF 50 in-vivo tested. Welcome to The Derma Co. standard.”

Honasa’s legal action, filed on April 16, seeks the removal or modification of HUL’s ad campaign, claiming it damages The Derma Co.’s reputation and misleads consumers. 

Justice Bansal’s preliminary observation that the ad appears disparaging has intensified the spotlight on the case, which could set a precedent for competitive advertising in India’s FMCG sector. 

Past Delhi High Court rulings, such as the 2013 case restraining HUL from airing a Vim dishwash ad that disparaged Reckitt Benckiser’s Dettol, suggest a judiciary wary of ads that unfairly target rivals.

As the legal battle unfolds, the sunscreen market—critical for HUL’s premium beauty portfolio, which accounts for 21% of its sales and a third of its profits—remains a high-stakes battleground.