FSSAI Issues Notices to Major Companies Over Misleading Labels on Ready-to-Drink Dairy Beverages

India's Food Safety and Standards Authority of India (FSSAI) has issued notices to major manufacturers over alleged misleading labelling and advertising of ready-to-drink dairy beverages, raising fresh questions about product classification, packaging transparency and consumer information in the dairy industry.

According to a report by News On AIR published on October 18, the regulator identified discrepancies between product packaging and online advertisements, particularly involving coffee-flavoured milk drinks. The products reportedly carried the description “Flavoured Milk” on the front of the pack but were classified as “Proprietary Food” on the back.

FSSAI has stated that the products fall under the standardised “Flavoured Milk” category and flagged potential violations of applicable food labelling and advertising regulations.

What Triggered FSSAI's Action?

The regulatory action centres on inconsistencies in how ready-to-drink dairy beverages are described and classified across product packaging and online sales channels.

For consumers, the information displayed on a product label helps explain what they are purchasing. When packaging and online descriptions use inconsistent classifications, consumers may find it difficult to understand the product's regulatory category and characteristics.

FSSAI has asked the manufacturers to explain why action should not be initiated under the Food Safety and Standards Act, 2006.

The notices represent a regulatory step seeking explanations from the companies; they should not be interpreted as final findings of liability.

Why Product Classification Matters in Dairy Beverages

Ready-to-drink dairy beverages have become an important category for dairy processors and food companies seeking to serve consumers looking for convenient, flavoured products.

Coffee-flavoured milk drinks combine dairy ingredients with flavouring and other ingredients, making accurate product descriptions and appropriate classification important aspects of regulatory compliance.

For manufacturers, the classification declared on packaging must be consistent with the applicable food standards and labelling requirements.

Clear and consistent information across physical packaging, e-commerce listings and digital advertisements also helps consumers make informed purchasing decisions.

Online Advertising Under Greater Scrutiny

The case highlights a growing compliance challenge for food companies: ensuring that product information remains consistent across every consumer-facing channel.

A product's packaging may be reviewed and approved internally, but online marketplace listings, promotional banners and digital advertisements can introduce discrepancies if they are not updated alongside packaging changes.

Dairy and beverage manufacturers should therefore review:

• Product classification: Verify that declared food categories comply with the applicable standards.
• Packaging consistency: Ensure front-of-pack and back-of-pack information is accurate and consistent.
• E-commerce listings: Match online product descriptions with approved product information and packaging.
• Advertising claims: Check that promotional language complies with applicable food safety and advertising regulations.
• Internal compliance systems: Coordinate regulatory, quality assurance, marketing and e-commerce teams to prevent inconsistent product information.

What Further Action Could Follow?

FSSAI has indicated that further action could include stopping non-compliant advertisements and requiring corrective advertising.

The regulator's intervention underscores the importance of compliance not only in manufacturing and food safety but also in how products are represented to consumers.

Companies selling ready-to-drink dairy beverages may need to strengthen their label review processes and digital content audits to identify and correct discrepancies before they result in regulatory notices.

What This Means for India's Dairy Industry

As dairy companies expand into value-added beverages, product differentiation and brand communication are becoming increasingly important. However, marketing strategies must remain aligned with regulatory standards.

Accurate labelling supports consumer confidence, while consistent product information helps businesses reduce compliance risks across retail and digital channels.

For the wider dairy industry, the case is a reminder that food safety compliance extends beyond the production facility to the information consumers see on shelves and online.

Source: Dairynews7x7 19 Oct, 2026 Read full story here

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