BIG WIN for Dabur! Delhi High Court SHUTS DOWN Patanjali's 'Fraud' Chyawanprash Ad – What You MUST Know!

The Delhi High Court has ordered a significant interim restriction on Patanjali Ayurved Limited, mandating the immediate removal of its latest chyawanprash advertisement. This ruling comes after Dabur India Limited filed a lawsuit alleging that Patanjali's commercial falsely termed competing chyawanprash products as 'dhoka' (fraud or deception). Justice Tejas Karia's order directs all electronic media, including national television, Over The Top (OTT) platforms, streaming systems, and online platforms, to cease broadcasting the advertisement within three days.

Dabur India argued that the advertisement, featuring Baba Ramdev, unfairly maligns its flagship Dabur Chyawanprash, a market leader since 1949. The company contended that Patanjali's ad created "generic disparagement" of the entire chyawanprash category, potentially eroding consumer trust in Ayurveda-based supplements. The Court agreed, stating that the advertisement, endorsed by a prominent figure like Baba Ramdev, is likely to create a strong impression on viewers that only Patanjali's product is genuine, leading them to disregard other brands.

While Patanjali's ad did not specifically name Dabur, the court noted that referring to every other chyawanprash as 'dhoka' would adversely affect market leaders like Dabur. A prima facie case for an injunction was established, as a false advertisement campaign could cause irreparable loss to Dabur, while stopping the broadcast would not significantly harm Patanjali, which can still advertise its product without disparaging competitors.

Impact This court order directly impacts Patanjali Ayurved's marketing strategy and potentially its sales for the advertised product. For Dabur India, it protects its brand reputation and market share from disparaging claims. The ruling also sets a precedent for fair advertising practices in the FMCG sector. The impact on the stock market could be a positive sentiment boost for Dabur and potentially a negative one for Patanjali Foods, though the extent depends on the ad's actual reach and sales impact. Rating: 6/10

Difficult terms explained: Interim order: A temporary court order made as a matter of urgency before the final hearing of a case. Disparagement: The act of belittling or speaking badly of a product, service, or company, often in advertising, which can harm its reputation. Prima facie case: A case that has enough evidence to proceed to trial; it appears to be true or valid on its first look. Injunction: A judicial order that restrains a person or entity from performing a specific act.