Delhi Commission Orders ₹15 Lakh Fine on Emami for Misleading Ads

Emami Limited has been found guilty of misleading advertising by the District Consumer Disputes Redressal Commission in Delhi’s Central District. The case revolves around the company’s fairness cream, 'Fair and Handsome', which the Commission ruled had made deceptive claims regarding its ability to deliver fairer skin within three weeks. The ruling follows a thorough review of evidence and complaints filed by Nikhil Jain, who alleged that the product failed to deliver the promised results.

The Commission, headed by President Inder Jeet Singh and member Rashmi Bansal, found that Emami’s claims of rapid fairness were unsupported by evidence. The company’s packaging suggested that users would achieve fairer skin within three weeks, but it failed to provide adequate instructions or highlight the necessary conditions for the results, making these claims misleading. The Commission also cited the incomplete instructions and lack of clear guidance as factors that contributed to the deceptive nature of the advertising.

In response to these findings, the Commission ordered Emami to withdraw all misleading ads and packaging related to the product, including any materials featuring the brand's ambassador, and cease using deceptive claims. Additionally, the company was penalized ₹15 lakh, with ₹14.5 lakh directed to the Delhi State Consumer Welfare Fund, and ₹50,000 to the complainant, Nikhil Jain. An additional ₹10,000 was imposed as litigation costs, with all amounts to be settled within 45 days from the ruling.

This decision marks the second hearing of the case, after an earlier ruling in 2015 favored the complainant. However, the State Commission overturned the decision in 2017, leading the case to be remanded back to the District Commission for a more thorough review. Jain had purchased the cream for ₹79 and used it according to the instructions, only to find that the product did not deliver the promised benefits.

Emami, in its defense, denied the allegations, asserting that the product had been scientifically tested and complied with regulatory standards. The company also claimed that the fairness cream was designed for users aged 16–35 and offered benefits like UV protection and skin improvement. However, the Commission rejected these arguments, emphasizing that the deceptive claims regarding quick fairness were misleading.

The punitive fine of ₹15 lakh is intended to act as a deterrent for future violations and to emphasize the importance of transparent marketing practices. Advocate Paras Jain, representing the complainant, celebrated the ruling, which underlined the need for honest advertising and consumer protection.

This ruling sends a strong message to brands about the importance of adhering to truthful advertising and maintaining transparency in all marketing communications.