CCPA Penalizes Storia for Misleading Advertising
The Central Consumer Protection Authority (CCPA) has levied a fine of ₹1 lakh on Storia Foods and Beverages, citing misleading advertisements and unfair trade practices. The penalty, announced on June 18 by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, targets the company’s claims of ‘100% Tender Coconut Water’, ‘100% Natural Tender Coconut Water’, and ‘100% Juice’ across several of its product offerings.
Ingredients in Question
An investigation into Storia’s coconut water product revealed that it was marketed as ‘100% Tender Coconut Water’ and ‘100% Natural Tender Coconut Water’, despite the ingredients list showing it contained water and only 9.6% coconut water concentrate, which equals reconstituted 100% coconut water. The inquiry also scrutinized Storia’s Pomegranate, Mixed Fruit, Mango, and Guava Chilli juice variants. These were advertised as ‘100% Juice’, yet the ingredient panels indicated they were primarily composed of water, with fruit pulp or concentrate ranging between 4% and 16%, supplemented by apple juice concentrate.
Consumer Expectations and Misleading Claims
The CCPA clarified that the term ‘100% Juice’ is commonly understood by consumers to mean a product entirely derived from fruit, without any added water, sugar, or other substances. The authority also criticized the branding of juices such as Pomegranate and Mixed Fruit, where apple juice concentrate was present in amounts equal to or greater than the featured fruit ingredients.
Inadequate Disclaimers and Unsubstantiated Health Claims
Regarding the coconut water labeling, the CCPA dismissed Storia’s argument that back-label disclosures were sufficient to inform consumers about the reconstituted nature of the product. ‘A disclaimer that seeks to undo what the principal claim has already communicated to the consumer is not a cure,’ the authority stated. Furthermore, Storia faced reprimands for making health claims such as ‘Combats Virus’, ‘Improves Metabolism’, ‘Kills Fatigue’, and ‘Rehydrates the Body Faster than Water’. These claims lacked sufficient product-specific scientific evidence.
Directive for Immediate Action
The CCPA instructed Storia to immediately cease using the claims ‘100% Tender Coconut Water’ and ‘100% Natural Tender Coconut Water’ on its website, product packaging, and e-commerce listings. Similarly, the ‘100% Juice’ claim for the Pomegranate, Mixed Fruit, Mango, and Guava Chilli variants must be removed. In addition, the authority ordered the company to stop making any health or therapeutic claims in future advertisements without robust, product-specific scientific backing.
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Storia was represented in the proceedings by their Legal Counsel, Harsh Hiroo Gursahani.
