In a surprising turn of events, Patanjali Ayurved, the Indian consumer goods giant with a reported ₹45,000 crore annual revenue (FY 2022-23), submitted an affidavit to the Supreme Court on March 20th, 2024, expressing regret for its advertising practices. Acharya Balkrishna, the company’s managing director, took full responsibility for the misleading claims about the medicinal benefits of their products showcased in advertisements. This move comes just a day after the Supreme Court issued a contempt notice against Patanjali for failing to respond to previous concerns about these very practices.
Court Action Prompts Damage Control
The Supreme Court bench led by Justices Hima Kohli and Ahsanuddin Amanullah had previously summoned both Ramdev, yoga guru and co-founder of Patanjali, and Balkrishna to appear before the court on April 2nd. This action stemmed from a petition filed by the Indian Medical Association (IMA) alleging a smear campaign by Ramdev against the Covid-19 vaccination drive, which saw a 20% drop in vaccination rates nationally, and modern medicine in general. Additionally, the IMA raised concerns about unsubstantiated claims of curative properties in Patanjali’s advertisements, viewed by an estimated 300 million viewers daily.
Unconditional Apology and Questions Remain
In the affidavit, Balkrishna expressed “unqualified regret” for the misleading advertisements and pledged to ensure “strict adherence to advertising regulations” moving forward. He emphasized Patanjali’s commitment to following the law and highlighted their intention to promote healthy living through genuine product benefits.
However, the court is reportedly seeking more than just an apology. Balkrishna clarified that the company relies on “ancient Ayurvedic texts and research” to promote their products for “lifestyle ailments.” While this might be true, the court has requested evidence of scientific studies conducted according to modern and accepted Ayurvedic principles to substantiate these claims. This shift in approach could have a significant impact on how Patanjali formulates its advertising strategy in the future, potentially impacting their revenue stream.
A Turning Point for Consumer Protection?
This case serves as a significant development in the ongoing debate surrounding advertising practices within the Indian healthcare industry. The Supreme Court’s actions aim to ensure consumers are protected from misleading claims about the efficacy of products, particularly those related to health and well-being. Patanjali’s apology and commitment to compliance, if genuine, could mark a turning point in ensuring ethical advertising within this crucial sector.
While the future remains to be seen, one thing is certain: the Indian consumer can expect a more transparent and evidence-based approach to healthcare product advertising in the times to come.
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