Editorial     

‘Cure all’ quacks need stiff action

It was indeed a historic judgment of far- reaching consequences when a Supreme Court bench of Justices Hima Kohli and Ahsanuddin Amanullah flayed self-styled yoga guru Baba Ramdev, Patanjali Ayurved and its Managing Director Acharya Balkrishna for releasing misleading advertisements, and refused to accept a second round of apologies from them in a contempt case. The apex court judges flagged widespread concerns about fast moving consumer goods (FMCG) companies playing with the health of a gullible public even as the government fails to crack the regulatory whip. They pointed out that the victims of such false/misleading advertisements are always members of the public.

“We are concerned with all those FMCG companies who are taking their consumers and clients up and down the garden path, showing them very rosy pictures about what their products can do them. People who pay good money for these products finally end up suffering at the cost of their health. That is absolutely unacceptable,” the judges noted.

The court also took Baba Ramdev and Acharya Balkrishna to task, pointing out that objectionable and misleading advertisements by Patanjali Ayurved claiming to cure everything from diabetes and obesity to liver dysfunction — and even Covid-19 during the period of the pandemic — were deliberate and willful violations of the Drugs and Magic Remedies (Objectionable Advertisements) Act of 1954 and its rules.

The apex court had initiated contempt proceedings against Patanjali Ayurved and Acharya Balkrishna earlier for violating an undertaking given to it earlier (in November 2023) that they would refrain from advertising ‘cures’ in violation of the 1954 Act. On November 2022, the apex court had directed the company to not make any casual statements to the print or electronic media about the efficacy of its medicinal products or indulge in any disparaging statements about other disciplines of medicine, including allopathy.

With a sizeable political patronage, Baba Ramdev goes on making tall claims about Patanjali products and ridiculing allopathy. Taking note of the authorities turning a blind eye to these claims, the apex court fired the Uttarakhand government and directed the officials of the licensing department to file affidavits explaining their inaction against Patanjali for the last six years.

The court also rightly observed that the Ayush Ministry of the central government should have been proactive in clarifying its stance that ayurvedic products are supplementary to other medicines and that users should not discontinue allopathic treatment.

Misleading advertisements and tall claims by people and companies are a major cause for concern. Misleading advertisements, which can range from exaggerated claims to outright falsehoods, pose a serious challenge to consumer trust and the integrity of the advertising industry itself.

It’s worth noting that stiff action is taken against misleading advertisements in developed countries. For instance, renowned German auto maker Volkswagen faced significant legal challenges owing to its misleading advertising practices. The company’s ‘clean diesel’ campaign, which falsely advertised some of its vehicles as environmentally friendly and compliant with emissions standards, led to a storm of criticism. The US Federal Trade Commission (FTC) revealed that Volkswagen’s claims were based on the use of a ‘defeat’ device. This deceptive practice led to a massive false advertising case, resulting in Volkswagen having to pay a huge amount by way of compensation.

The question thus arises: Should Patanjali be let off with only providing an apology?

written by

Deven Malkan

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February 15, 2025 - First Issue

Industry Review

VOL XVI - 10
February 01-15, 2025

Formerly Fortune India Managing Editor Deven Malkan Assistant Editor A.K. Batha President Bhupendra Shah Circulation Executive Warren Sequeira Art Director Prakash S. Acharekar Graphic Designer Madhukar Thakur Investment Analysis CI Research Bureau Anvicon Research DD Research Bureau Manager (Special Projects) Bhagwan Bhosale Editorial Associates New Delhi Ranjana Arora Bureau Chief Kolkata Anirbahn Chawdhory Gujarat Pranav Brahmbhatt Bureau Cheif Mobile: 098251-49108 Bangalore Jaya Padmanabhan Bureau Chief Chennai S Gururajan Bureau Chief (Tamil Nadu) Ludhiana Ajitkumar Vijh Bhubaneshwar Braja Bandhu Behera

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