Supreme Court Imposes Complete Ban on Misleading Ads by Patanjali Ayurveda, Issues Contempt Notice to the Company and its MD

Supreme Court's Firm Stance on Misleading Advertisements by Baba Ramdev's Patanjali Ayurveda.

A Stern Warning and Legal Actions

In a significant move, a Bench of the Supreme Court of India, comprising Justice Hima Kohli and Justice Ahsanuddin Amanullah, today issued a stern warning to Patanjali Ayurved Ltd., emphasizing the gravity of its misleading public advertisements concerning medicinal claims. The Apex Court's intervention on February 27 underscores a critical step towards safeguarding the health of the patients, the consumer rights and upholding the integrity of medical claims in advertising.

Breach of Trust and Legal Undertakings

Patanjali Ayurveda found itself under the judicial scanner for allegedly continuing to publish advertisements that claimed medicinal cures, directly contravening their previous assurance to the Court. "The entire country is taken for a ride! You wait for two years when the Act says this (misleading advertisements) is prohibited," Justice Ahsanuddin Amanullah remarked, highlighting the seriousness with which the Court viewed the breach of its earlier order. This prompted the Court to issue a contempt notice to the company and its Managing Director, Acharya Balakrishna, demanding an explanation for the blatant and wilful disobedience of their undertaking.

Immediate Restrictions and Judicial Oversight

Further accentuating its disapproval, the Supreme Court imposed an immediate and complete embargo on Patanjali from advertising its products as cures for diseases listed under the Drugs and Magic Remedies (Objectionable Advertisements) Act 1954. The Justices also advised caution against making any statements that could potentially disparage other systems of medicine, aiming to maintain a respectful discourse among different medical practices.

The Controversy Surrounding Misleading Claims

The Bench was particularly critical of Patanjali's audacity in flouting the Supreme Court's directives. Justice Amanullah's ire was palpable when he said, "Today, I am going to pass a really strict order. You flout this order!” and “You had the courage and guts to come up with this advertisement after the order of this Court!" These remarks were in response to allegations that Patanjali continued to make misleading claims about having permanent cures for various diseases, a matter of grave concern given the potential implications on public health and trust.

Seeking Accountability and Regulatory Action

The case, initiated by the Indian Medical Association, calls for a comprehensive review of the advertising standards concerning medical claims, seeking not only to address the immediate concerns with Patanjali but also to set a precedent for future regulatory actions. The Court's query about the Union Government's role and the steps taken under the relevant statutes reflects a broader concern for systemic oversight and enforcement.

About Patanjali Ayurveda

Patanjali Ayurveda Limited is an Indian multinational consumer packaged goods company based in Haridwar, India. It was founded by Baba Ramdev and Acharya Balkrishna in 2006. The company has positioned itself strongly in the Indian FMCG market by promoting its products as natural and Ayurvedic, which has resonated well with a significant section of the Indian population seeking alternatives to the products offered by multinational companies.

Leadership and Management

Acharya Balkrishna serves as the Managing Director (MD) of Patanjali Ayurveda. He is a close associate of Baba Ramdev, who is a well-known yoga guru and the public face of the brand. Balkrishna holds a significant stake in the company and has been instrumental in its growth, leveraging his expertise in Ayurveda to develop and promote a wide range of products.

Products and Scale of Operation

Patanjali offers a vast array of products, including food items, beverages, cleaning agents, personal care products, Ayurvedic medicine, and health supplements. Its product range is extensive, aiming to cover various aspects of daily life with an Ayurvedic touch. The company has rapidly expanded its footprint across India with a wide distribution network that includes thousands of retail counters, Patanjali mega stores, and Arogya Kendras. It also exports products to several countries, marking its presence on the international stage.

Controversies

Patanjali Ayurved has faced its share of controversies, including questions over the quality and efficacy of its products. There have been instances where the company was criticized for making unfounded claims about the benefits of its products without sufficient scientific evidence. For example, during the COVID-19 pandemic, Patanjali launched a product called Coronil, claiming it to be a cure for the virus, which led to a backlash from the medical community and regulatory bodies seeking more concrete evidence.

Relationship with Baba Ramdev

Baba Ramdev, co-founder of Patanjali, is not just a spiritual leader but also a brand ambassador for the company. His vast following and credibility in the realm of yoga and Ayurveda have been pivotal in establishing Patanjali's brand. While Baba Ramdev does not hold an official position within the company, his influence is undeniable, and he often appears in advertisements and public events promoting Patanjali products. His relationship with the company is symbiotic, where his endorsement has significantly contributed to the brand's popularity and trust among consumers.

Looking Towards a Balanced and Informed Future

As the Supreme Court navigates this complex issue, its actions resonate with a clear message: the health and wellness of the populace are paramount, and compliance with legal standards is non-negotiable. This case is not merely about Patanjali or Ayurveda versus allopathy; it's about establishing a framework where medical claims, regardless of their origin, are scrutinized, verified, and held to the highest standards of truthfulness and public safety.

The Court's deliberations are poised to shape not just the future of advertising in the Ayurvedic sector but also the broader landscape of medical advertising in India. By emphasizing the need for honesty, transparency, and respect for legal and ethical standards, the Supreme Court aims to protect consumers from potentially harmful misinformation, ensuring that public health remains a priority in the discourse around medical treatments and remedies.

Supreme Court’s Verdict shall have far-reaching implications

As the matter progresses, it is hoped that the outcome will reflect a balanced consideration of all perspectives, underpinned by a commitment to the well-being of the Indian populace and the integrity of medical advertising. The Supreme Court's decisive stance in this case is a testament to the judiciary's effective and pro-active role in upholding public interest and legal compliance, setting a precedent for responsible advertising in the healthcare sector.