The government's appeal against Nestle India over unfair practices connected to the sale of Maggi noodles has been denied by the National Consumer Dispute Redressal Commission (NCDRC), the company stated on Thursday.
In 2015, the NCDRC received a complaint from the Department of Consumer Affairs, alleging that Nestle engaged in unfair trade practices by producing and marketing dangerous products to the general public.
The appeal was denied by the NCDRC on April 2, 2024, ruling in favor of Nestle India. Prior to this, the government had asked for punitive penalties totaling Rs 355.41 crore and compensation totaling Rs 285 crore.
In a 47-page lawsuit submitted to consumer court, the government stated that millions of customers' health and welfare had been jeopardized by Nestle's attempt to boost profits.
The Food Safety and Standards Authority of India (FSSAI) initiated action against Maggi in 2015 because to elevated lead levels in some samples and improper labelling of monosodium glutamate (MSG), also known as ajinomoto. This prompted the government to file a complaint.
Subsequent testing conducted in India and beyond proved that Maggi noodles were safe, despite the initial prohibitions and Nestle's estimated Rs 450 crore in damages. The government complained to the NCDRC as a result of this.
This was the first time the Consumer Affairs Ministry had brought a corporation before the NCDRC by using a section of the almost four-decade-old Consumer Protection Act. Although the government is permitted by law to register complaints, the NCDRC often responds to complaints from consumers.
The Food Safety and Standards Authority of India (FSSAI) initiated action against Maggi in 2015 because to elevated lead levels in some samples and improper labelling of monosodium glutamate (MSG), also known as ajinomoto. This prompted the government to file a complaint.
Subsequent testing conducted in India and beyond proved that Maggi noodles were safe, despite the initial prohibitions and Nestle's estimated Rs 450 crore in damages. The government complained to the
NCDRC as a result of this. This was the first time the Consumer Affairs Ministry had brought a corporation before the NCDRC by using a section of the almost four-decade-old Consumer Protection Act. Although the government is permitted by law to register complaints, the NCDRC often responds to complaints from consumers.
