FSSAI issues show-cause notices to BigBasket, Flipkart over product claims

The Food Safety and Standards Authority of India (FSSAI) has issued show-cause notices to e-commerce platforms BigBasket and Flipkart over allegedly misleading product claims. Inc42 reported the development, citing violations of food safety regulations.

The notices follow routine inspections and could lead to penalties or corrective actions if the companies fail to respond adequately. Neither BigBasket nor Flipkart has publicly commented on the specifics of the allegations. FSSAI’s move aligns with its broader push to enforce labeling and advertising standards across digital marketplaces, a focus in recent months.

For Flipkart, the timing is notable. The company is preparing for its flagship Big Billion Days sale, which we reported earlier this week will feature 150 million products from a larger seller base than last year. A regulatory issue could create challenges as it works to attract sellers and maintain consumer confidence ahead of the event. Flipkart has also been addressing internal matters, including former executives seeking an ESOP buyback amid delays in its public listing plans.

BigBasket, now under a major conglomerate’s ownership, has faced regulatory scrutiny before, though not at this level. The notices arrive as quick-commerce platforms grow their presence in groceries and perishables, where compliance risks are elevated. Both companies are likely to contest the allegations or negotiate resolutions, but the process will increase their operational burdens.

The broader question is whether FSSAI’s action marks the start of stricter oversight for e-commerce platforms. If so, smaller players may find it harder to meet the same compliance demands, potentially altering the sector’s dynamics. Observers will watch for updates in the coming weeks, the typical period for responses to such notices.

Sources: inc42.com