Patanjali Foods on Supreme Court ad ban: 'SC observations won’t affect business operations'
"The entire country is being taken for a ride" and the government is "sitting with its eyes closed", said Justice Ahsanuddin Amanullah, as the Supreme Court issued a show-cause notice to Patanjali Ayurved for going back on its promise to not make misleading claims in its medicine ads.
Baba Ramdev’s Patanjali Ayurved and managing director Acharya Balkrishna have been held in contempt by the Supreme Court and the company has been barred from advertising its medicines. The SC has issued notice for violating its previously passed order against misleading advertising that talks about being able to cure serious diseases or makes claims against allopathy, etc.
Following the SC order, Patanjali Group-owned Patanjali Foods said the company’s business operations and financial performance will not be impacted because of the Supreme Court’s observation on ads related to ayurvedic medicines sold by a promoter group firm, PTI reported. Patanjali Group has nearly 74 per cent stake in Patanjali Foods.
In a regulatory filing, Patanjali Foods said the “observations of Supreme Court of India do not relate to Patanjali Foods Ltd (PFL) which is an independent listed entity and operates in the space of edible oil and food FMCG products only.” “The observations do not have any beating on the regular business operations or the financial performance of Patanjali Foods,” the company said.
Supreme Court slams Patanjali for misleading ads and flouting orders
"The entire country is being taken for a ride" and the government is "sitting with its eyes closed," said a division bench chaired by Justice Ahsanuddin Amanullah. The Supreme Court issued a show-cause notice to Patanjali Ayurved for going back on its promise to not make misleading claims in its medicine ads.
Apart from issuing notice, the SC has temporarily restricted Patanjali Ayurved from advertising anything that claims to cure diseases and illnesses such as blood pressure, diabetes, fevers, epilepsy and lupus, specified in the Drugs and Magic Remedies (Objectionable Advertisements) Act 1954.
“Respondents are restrained from advertising and branding of their marketed medicinal products specified as treating diseases/ailments as in the rules, until further orders. They are cautioned from making any statements adverse to any medicine system in any form in print or other media,” said Justice Ahsanuddin Amanullah.
“Today, I am going to pass a really strict order. You flout this order! You had the courage and guts to come up with this advertisement after the order of this Court! And then you come up with this advertisement. Permanent relief, what do you mean by permanent relief? Is it a cure?...we are going to pass a very, very strict order. You are tempting the Court,” the Justice added, as per a Moneycontrol report.
In November last year, the Supreme Court issued a warning to Patanjali Ayurved, for publishing misleading claims and ads against modern systems of medicine. The court said it could impose fines of up to Rs. 1 crore on each product if a false claim is made regarding its ability to 'cure' a specific disease, responding to a petition from the Indian Medical Association (IMA) challenging deceptive advertising practices.
Justice Amanullah had remarked, "All false and misleading advertisements by Patanjali Ayurved have to stop immediately. This Court will take such infractions very seriously and will consider imposing costs of up to Rs 1 crore on every product for which a false claim is made that it can cure a particular disease."
A day after the Supreme Court issued a stern warning to Patanjali Ayurved, the company said it was not making any "false advertisements or propaganda" regarding its products.
The company went on to say that it would not object if the Supreme Court were to impose a fine or "even give us a death sentence" if found making misleading claims.
Patanjali Ayurved claimed it has a "database" of over one crore people, "with real world evidence, preclinical and clinical evidence". Adding that it has "made thousands of people free from several diseases like BP, sugar, thyroid, asthma, arthritis, obesity, liver and kidney failure, and cancer."
As per reports, the Baba Ramdev-led company said, "We humbly respect the Supreme Court of India and if we make false advertisements or propaganda, we would not have any objections if honourable court imposes a fine of crores or even give us a death sentence."
