The Central Consumer Protection Authority (CCPA) has imposed a financial penalty of ₹1 lakh on United Biscuits Private Limited, previously known as Pladis India Private Limited. This enforcement action is due to the company’s misleading marketing of McVitie’s Marie Biscuits as ‘Wholewheat,’ despite the product containing only 19.5% whole wheat flour.
The CCPA determined that the prominent display of ‘Wholewheat’ on the packaging had the potential to mislead consumers about the actual composition of the biscuits. Analysis revealed that the biscuits were predominantly made with 52% refined wheat flour, known as maida, while whole wheat flour constituted a mere 19.5% of the product.
The order was made public on August 28 and was signed by CCPA Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra. In addition to the monetary penalty, the CCPA has mandated that United Biscuits immediately cease the use of the misleading advertisement across all media platforms, including print, electronic, and social media. Furthermore, the company must alter all new packaging to remove the misleading ‘Wholewheat’ claim.
This case emerged after the CCPA initiated a suo motu proceeding, triggered by an online article that critiqued the marketing strategy of McVitie’s Wholewheat Marie Biscuits. A preliminary investigation revealed that the packaging prominently labeled the biscuits as ‘Whole Wheat,’ while the ingredient list disclosed that whole wheat flour made up only 19.5% of the product.
Subsequent investigation by the CCPA’s investigative wing confirmed that the term ‘Wholewheat,’ alongside images of wheat on the main display panel, could mislead consumers into believing that the biscuits were primarily made from whole wheat flour.
In defense, United Biscuits claimed that ‘McVitie’s Wholewheat Marie’ is a registered trademark and that the term ‘Wholewheat’ was not meant to indicate the actual composition of the biscuits. The company also pointed out a disclaimer on the packaging, stating that the trademark did not reflect the true nature of the product.
The CCPA dismissed this defense, stating that a disclaimer does not counteract the misleading impression created by the prominently displayed ‘Wholewheat’ label. The authority emphasized that consumers are unlikely to overlook the primary representation on the packaging in favor of less conspicuous text.
During the proceedings, United Biscuits expressed a willingness to revise the packaging by removing the word ‘Wholewheat’ from the registered trademark. However, they requested a nine-month period to phase out existing packaging materials. The CCPA, however, ordered that all new packaging must be altered immediately following the order.
In addition to the financial penalty for misleading advertising and unfair trade practices, the CCPA has directed United Biscuits to submit a compliance report within 15 days of the order.
