On Thursday, October 22, the Food Safety and Standards Authority of India (FSSAI) announced on social media that it had issued notices to Nestle India and Zydus Wellness Products Ltd for misleading claims and non‑compliant promotions. The notices target two Nestle products – Lactogen Pro 1 Powder and Nan Excella Pro Stage 1 – and one Zydus product – Complan. FSSAI said the companies must provide scientific proof to support the advertisements. The regulator’s post highlighted that the claims in the labels and marketing materials were considered deceptive and in breach of the Food Safety Act, 2006. Both firms were asked to submit evidence within a specified period.

At 10:33 AM on the same day, Nestle India shares fell 2.43 % to ₹1,194.10 on the NSE, while Zydus Wellness shares slipped 1.60 % to ₹484.15. The decline reflected investor concern over the regulatory action and the requirement for scientific substantiation. Market participants noted that the notices could impact future sales and marketing strategies for the affected products. The shares’ movement was part of a broader market reaction to the FSSAI’s announcement, with other stocks also experiencing volatility as investors reassessed compliance risks.

FSSAI’s notice for Lactogen Pro 1 Powder cited a claim that the product contains whey protein, described as a milk protein that is easy to digest. The regulator demanded that Nestle provide scientific substantiation for the digestibility claim. The company was directed to submit the requisite documents and supporting evidence within the stipulated period. In Nan Excella Pro Stage 1, the FSSAI flagged the statement “5 HMOs help support the normal immune system” as implying disease prevention, which is prohibited unless specifically permitted. The claim “contains whey protein” was also observed on the packaging and advertising material, prompting a request for proof.

The notice to Zydus Wellness Products Ltd focused on its Complan product, where the label displays images of two children and claims such as “2 X Faster Growth”, “Supports Concentration and Memory” and “Pro Immunity+ 34 Vital Nutrients”. FSSAI found these statements in violation of the FSS (Advertising and Claims) Regulations, 2018, which prohibit claims relating to disease prevention or cure unless permitted. The regulator also flagged the advertisement claim “growth comes in 4 flavors” as non‑compliant. Zydus was directed to provide scientific justification for all claims and to show cause within the stipulated period as to why action should not be taken against the company.

Nestle India has already submitted a detailed response to FSSAI, according to a spokesperson, reiterating points raised in an earlier post on September 18 regarding product labels. The company has been asked to explain why action should not be initiated under the FSS Act, 2006. Zydus Wellness has also been asked to show cause within the stipulated period, but no further details of its response have been disclosed. The notices underscore the regulator’s emphasis on scientific backing for health‑related claims and the strict enforcement of advertising regulations under the Food Safety Act.