In-depth: Regulatory scrutiny, activism make it difficult for food brands to twist the truth

New Delhi: The brands in the food category are facing the heat amid the regulatory clampdowns and food activism as concerns rise over misleading advertisements and unhealthy products.  

The Food Safety and Standards Authority of India (FSSAI) is turning up the pressure with tougher rules on packaging, labelling, and health claims. And if that wasn't enough, the new mandatory self-declaration certificate for food and health advertisers is adding an extra dose of accountability. 

However, experts suggest the need for a balanced approach to curbing the misleading advertising menace. 

Santosh Desai, CEO of Futurebrands India, said, “While stricter regulations are essential, it's crucial to avoid stifling innovation. The focus should be on creating a level playing field that promotes healthier options without burdening the industry with excessive bureaucracy.” The act of imposing mandates or rules “will make you think twice as to whether you are doing something right or not. Yeah, that's the only bit because there is no focus on the penalties?”

Anirban Mozumdar, a brand consultant and former CSO at Havas Creative Network, believes that brands need to strike a balance between creativity and compliance. This is a course correction, not a setback.  

He said, “Most of the (large-scale) brands have very robust legal departments. Now, it is time to ensure that those adherences are listened to rather than circumvented.”  

In the case of small-scale brands, there wasn’t a lot at stake in terms of advertising when it came to the general competitive landscape. This gives them an opportunity now to seamlessly integrate the current requirements to avoid consequences from ad violations, he said.  

Even Desai expressed his thoughts on the same lines, saying, “I don’t see much about why these changes should have any major impact on smaller advertisers,” given how invested they are in advertising. “In the initial stages, there will be some effect. But people will figure out.”

“If we adopt an era of information responsibility, it will benefit brands because consumers now also have too much information and don't know where to navigate. Compliances within such short notice might be difficult, but it is still the largest opportunity,” commented Mazumdar. 

The festive season, typically marked by a surge in food and beverage advertising, will be subject to higher stringency this time. Nisha Sampath of Bright Angles Consulting LLP highlighted that “festivals are a time for gifting and indulgence and categories like sweets, chocolates, etc. will come to the forefront.” 

However, she also said, “Healthy food brands will see an opportunity to build a franchise through sugar-free or low-calorie alternatives. Such brands will advertise responsibly as they address the emerging audience of ‘mindful’ buyers who want to make better food choices. I expect to see greater voluntary and upfront ingredient transparency.” 

Ramesh Narayan, Founder of Canco Advertising, said, “A higher focus on preparedness before peak festive season hits could save brands and advertisers from possible consequences.”  

A spokesperson for a popular chip brand, speaking on the condition of anonymity, remarked, "One fish can spoil the whole pond. Similarly, Patanjali's misleading claims in ads have made life difficult for other advertisers in the food and health category."

He continued, "It was only after this that the Supreme Court stepped in, mandating SDCs for food and health brands."

Even before this Supreme Court mandate, the FSSAI had intensified its efforts to curb malpractices in the food sector. For instance, the food regulator recently approved changes in nutritional information labelling on packaged food items, requiring total salt, sugar, and saturated fat to be displayed in bold letters and larger font sizes.

Additionally, the FSSAI has ordered food business operators to immediately remove claims of 100% fruit juice in advertisements and on labels. Following a study that found many products in stores, gyms, and e-commerce platforms had questionable health claims and inaccurate nutritional information, the FSSAI plans to introduce even stricter regulations.

A new report by the Nutrition Advocacy in Public Interest (NAPi) titled '50 Shades of Food Advertising' has further intensified the focus on aggressive advertising of unhealthy food and beverages. 

As per NAPi, a multi-pronged approach is necessary to address the issue of misleading food advertising. This includes:

• Strengthening regulations: Implementing clear and enforceable guidelines for food and beverage advertising, including stricter penalties for violations.
• Enhancing consumer awareness: Educating consumers about healthy eating habits and critical media literacy through campaigns and educational initiatives.
• Promoting industry self-regulation: Encouraging industry bodies to develop and enforce ethical codes of conduct.
• Collaboration between stakeholders: Fostering partnerships between the government, industry, and civil society to create a healthier food environment. 

While Hamsini Shivakumar, a semiotician and founder of Leapfrog Strategy Consulting, anticipates an explosion in food activism, she suggested that “Given that NAPi is an activist body, they don't have enforcement power, which lies with the government. So, it remains to be seen how much the government will respond.” 

Shivakumar added, “The activists will try to enlist influencers and celebrities on their side to exert pressure on global and Indian corporations.” She expects the movement to raise public consciousness around preventive health; being mindful of excess sugar and salt consumption can only be a good thing. 

“My expectation revolves around nutrition, food, and health, especially for products aimed at children, which will become a bigger battleground in the next five years between activists and industry,” Shivakumar stated. 

One striking example of food activism is the emergence of de-influencers who double as food influencers.

Himatsingka, aka, FoodPharmer, has become a leading de-influencer in the food industry, wielding humour and sharp analysis to expose the not-so-healthy truths lurking behind popular packaged foods.

He gained national popularity after its quest against Bournvita and getting it de-listed as a health drink. After one of his videos went viral about the palm oil content in chips, Lay’s announced that it would cut palm oil in its products! 

Most recently, he has taken a significant step in the battle against adulteration in packaged foods with the launch of his latest initiative, "Label Padhega India.”

Supporting FoodPharmer in his mission, there are influential personalities, including Dinesh Karthik, Abhinav Bindra, Flying Beast, Archana Puran Singh, Terence Lewis, Ankita Bainyanpuria, Ankur Warikoo, Tech Burner, Thugesh, Saurav Joshi, Abhi and Niyu, Luke Coutinho, and many more. 

A digital marketer from one of India’s top 5 FMCG brands told BestMediaInfo.com, “Some content creators are exploiting the de-influencing trend to gain attention, often misleading consumers with factual errors and incomplete information. This is detrimental to food brands.” 

Brands are now under pressure to re-evaluate their messaging and product offerings. Innovation in healthy snacking options and transparent labelling could gain traction. However, brands with a history of manipulative tactics will need to invest in building trust. 

Rahul Gupta, Founder and Chief Creative Officer of By Design (formerly IBD), highlighted, “The impact on advertisers of the latest NAPi report, FSSAI crackdown, and SDC implementation means building a whole new team.”  

This team would be responsible for looking at the intensity and suitability of advertisements so that the brands can ensure maximum safeguard against penalisation or violations. Thus, adding to the costs of the final product for advertisers, added Gupta. 

The ad agencies will need to develop compliant campaigns that promote healthy options while engaging consumers. Media platforms may need to implement stricter vetting processes for food advertisements.

Small businesses, particularly those operating in the unorganised sector, face significant hurdles in adapting to the new regulatory landscape.  

Even celebrity endorsements and influencer marketing, once powerful tools, are facing growing scepticism. Consumers are demanding greater transparency and authenticity.

Desai reflected on the industry’s, especially small companies’ adaptability to emerging changes in policies and regulations; he said, “There was a time when any form of digital engagement was difficult for people. Today, people are digitally engaging all the time. If you're a business, you're dealing with GST, which is a far more cumbersome process, just like you got used to GST. Initially, it was a pain but everyone got used to it.”
 
In its ‘50 Shades of Food Advertising’ report, NAPi stated that celebrities, including Alia Bhatt, Rahul Dravid, Katrina Kaif, MS Dhoni, Sidharth Malhotra, Kiara Advani, and Kareena Kapoor, endorse unhealthy food products. 

Therefore, it urged these celebrities to refer to the government’s Dietary Guidelines for Indians to ensure the information they promote is accurate.

Global trends in food advertising regulation

India is not alone in its efforts to regulate food advertising. Many countries have implemented stricter measures to protect consumers from misleading claims and unhealthy food promotions. 

Australia: The Australian Competition and Consumer Commission (ACCC) has been at the forefront of tackling misleading advertising, including in the food and beverage sector. 

United Kingdom: The UK government has introduced restrictions on junk food advertising to children, including bans on television advertising during peak viewing times. 

European Union: The EU has implemented comprehensive regulations, such as the Nutri-Score labelling system, to help consumers make healthier choices. 

The need for collaboration between the government, industry, and civil society becomes evident in developing effective regulatory frameworks and promoting responsible advertising practices.