The government on Tuesday filed a class action suit against Swiss manufacturer of Maggi noodles seeking Rs. 639 crore in damages for alleged unfair trade practices, false labelling and misleading advertisement. The government took a tough stance as the product that allegedly had high lead content and Mono Sodium Glutamate (which was not labelled) was meant for children.
“The advertisements mislead by claiming that the product had taste as well as was healthy for children,’’ sources said.
The “modest’’ figure of Rs. 639 crore includes “damages’’ and “penal damages’’ and takes into account annual profits and sales of the company through its entire range of Maggie products. If the government wins the case, the entire amount will be ascribed to the Consumer Welfare Fund under the Consumer Affairs Department and used for the welfare of consumers, highly placed sources told The Hindu.
For the first time, the Consumer Affairs Department has dragged the Indian arm of a multi-national company—Nestle India -- to the National Consumer Disputes Redressal Commission (NCDRC) under Section 12 (1D) of the Consumer Protection Act. The section says that the government can take a matter before the Commission on behalf of a class of people.
The Department had taken opinion of the Law Ministry and got the matter vetted by legal experts.
| » | In April, the food regulator of Uttar Pradesh, UP FDA had ordered recall of a batch of about 2 lakh packs of the Maggi instant noodles due to higher than permitted levels of lead and food additives. |
| » | No. States conducting tests: 09; No. of States that have banned: 11 |
| » | On May 29, taking a “serious” note of quality issues related to global giant Nestle’s famous noodle brand Maggi, the government asked the Food Safety and Standards Authority of India to look into the matter. The FSSAI has collected more samples of Maggi from different states for testing. |
| » | Meanwhile, Hindi actors Madhuri Dixit, Amitabh Bachchan and Preity Zinta, who endorse Maggi were served legal notice on the claims made in the advertisement. A complaint was filed in the court of the Chief Judicial Magistrate, Barabanki, on May 30, by lawyer Santosh Kumar Singh, saying that by endorsing Maggi the film stars have misled people. The Consumer Affairs Ministry Additional Secretary G Gurucharan says "brand ambassadors would be liable for action if advertisements are found to be misleading.” |
| » | On May 30, Madhuri Dixit tweeted that she met officials of Nestle and the company has reassured that "they adhere to stringent testing for quality and safety and are working with the authorities closely.” |
| » | The same day, the Food Safety and Drug Administration of the U.P. government filed a case against the manufacturing company, Nestle India Ltd., and five others, including the Barabanki store from where samples with excess lead were seized. |
| » | The Uttarakhand Food Safety Department too collected samples of the noodle brand from the company’s plant at Pantnagar in the State. Confirming the presence of MSG, the state banned Maggi. |
| » | Nestle India said it has got tested samples of the noodle brand in an external laboratory as well as in-house and the product has been found “safe to eat” with lead levels within the permissible levels for consumption. The company was, however, silent on presence of the taste enhancer monosodium glutamate (MSG). |
| » | Nestle India's stocks continued to slumpamid growing concerns about safety standards of its popular Maggi noodles. In a BSE filing, the company said it has not received any order from the central or any state FDA authority for recall of its Maggi noodles. |
| » | State-owned retail outlets in Kerala and Delhi have banned the sale of Maggi. Leading retail chain Big Bazaar has also reportedly taken them off from its shelves. |
| » | Army has issued advisory to its personnel asking them not to eat Maggi noodles and directed its canteens not to sell them till further orders. |
| » | Nestle on June 5, said it is withdrawing the product from Indian market due to “unfounded confusions” that has affected the consumer trust, but maintained that its noodles are safe for consumption and has no presence of MSG. |
| » | Singapore and Nepal have ordered local importers to temporarily suspend of the sale of Nestle’s Maggi noodles imported from India. |
| » | Maharashtra Food and Drug Minister Girish Bapat has announced a ban on the sale of Maggi with effect from on Saturday after lab tests proved presence of lead above the permissible level in the samples tested. |
| » | A day after banning Maggi noodles, food safety regulator FSSAI on Saturday said it will test samples of instant noodles across brands to ensure food safety. |
| » | On Sunday, Karnataka government banned the manufacture and sale of maggi noodles and Goa also followed suit by banning the product. |
