CCPA fines Storia and Mrs. Bectors ₹1 Lakh each over misleading "100%" claims and orders their removal
Storia's "100%" product and health claims were found misleading due to reconstituted ingredients and lack of evidence
The development comes days after the FSSAI pulled up Storia and other companies for allegedly misleading product branding
The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹1 Lakh on beverages brand Storia Foods
for allegedly misleading consumers through the use of “100%” claims on their products.
The consumer protection body also slapped a similar fine on Mrs. Bectors Food Specialities (English Oven) for the same claims. The CCPA directed both brands to immediately withdraw the disputed claims from product packaging, websites and all digital platforms.
The action was taken under the Consumer Protection Act, 2019, and the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.
The CCPA said that the expression “100%” is an absolute numerical claim that must accurately reflect a product’s actual composition and cannot be used loosely or merely as a marketing slogan.
The authority took suo motu cognisance of Storia’s advertisements for “100% Tender Coconut Water”, “100% Natural Tender Coconut Water” and “100% Juice” variants, including pomegranate, mixed fruit, mango and guava chilli.
These claims appeared on the brand’s website, product packaging and ecommerce platforms such as Amazon, Flipkart, BigBasket, Blinkit, JioMart and Zepto.
The development comes days after the FSSAI pulled up Storia and other companies for allegedly misleading product branding.
In Storia’s case, the regulator said its pomegranate juice product could create the impression that it is primarily made from pomegranate juice, even though it contains only 4% pomegranate juice concentrate.
At the heart of the regulator’s case was Storia’s use of the term “100%” across its coconut water and fruit juice portfolio.
The CCPA held that these claims created a misleading impression about the nature and composition of the products, leading consumers to believe they consisted entirely of the ingredients highlighted on the packaging.
The authority found that Storia’s products marketed as “100% Tender Coconut Water” and “100% Natural Tender Coconut Water” were labelled as containing “Water and Coconut Water Concentrate (9.6%) (Equivalent to 100% Coconut Water) (Reconstituted)”.
According to the regulator, an ordinary consumer would interpret “100% Tender Coconut Water” as a product consisting entirely of natural coconut water, whereas the product was made by reconstituting coconut water concentrate with water.
The CCPA observed that the qualifier “(Reconstituted)” appeared only in the ingredient declaration and not alongside the principal claim. It also noted that the product contained Class II preservative INS 202, rendering the accompanying “100% Natural” claim untenable.
The regulator raised similar concerns about Storia’s “100% Juice” range, noting that the products contained water along with fruit pulp or concentrate ranging from 4% to 16%, while the remaining composition largely comprised apple juice concentrate and water.
In some variants, including pomegranate and mixed fruit, apple juice concentrate was present in equal or greater quantities than the fruit highlighted on the packaging.
For instance, the pomegranate variant contained 4% pomegranate juice concentrate and 12% apple juice concentrate, while the mango variant contained 16% mango pulp and 12.5% apple juice concentrate.
The authority held that the product names and packaging conveyed that the products derived their identity and character from the named fruit, despite the significant presence of apple juice concentrate.
Beyond composition-related claims, the CCPA also questioned health assertions such as “Combats Viruses”, “Improves Metabolism”, “Kills Fatigue” and “Rehydrates the Body Faster Than Water”.
It said the brand failed to provide product-specific studies, trials or tests to substantiate these claims, relying instead on general literature relating to coconut water.
The authority further noted that the claim “Combats Viruses” continued to appear on Storia’s official website in September 2024 despite its submission that it had already been removed. The startup failed to explain this discrepancy during the proceedings.
Accordingly, the CCPA held that Storia violated Sections 2(9), 2(28) and 2(47) of the Consumer Protection Act, 2019 relating to consumers’ right to information, misleading advertisements and unfair trade practices. It found that the startup’s claims falsely described and created a misleading impression about the composition, quality and nature of its products.
Reiterating its stance, the regulator said “100%” is an absolute numerical claim that must accurately reflect a product’s actual composition and cannot be used loosely, approximately or merely as a marketing slogan.
It added that claims relating to composition, quality, nutrition or health benefits must be truthful, verifiable and non-deceptive.
Founded in 2016 by Vishal Shah, Sixth Sense Ventures-backed Storia is a health-focused beverage brand that sells packaged coconut water, fruit juices, shakes and other ready-to-drink beverages through its own website, ecommerce marketplaces and quick commerce platforms such as Blinkit, Zepto and Swiggy Instamart.
Source: Inc42 - Startups
