Delhi HC sets aside FSSAI order directing Red Bull to drop ‘Energy Drink’ label

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New Delhi: The Delhi High Court on Tuesday set aside a Food Safety and Standards Authority of India (FSSAI) order directing Red Bull to stop using the term “Energy Drink” for its products, holding that the company was not given an opportunity to explain its position before the direction was issued.

Justice Amit Mahajan allowed Red Bull’s petition on the limited ground that the principles of natural justice were not followed by the food regulator.

The Court noted that the June 30, 2026 order directing Red Bull not to use the term “Energy Drink” was passed without giving the company an opportunity to file a reply or provide an explanation.

The Court consequently set aside the order, while making it clear that FSSAI can reconsider the matter and take a fresh decision after following the due process of law.

FSSAI has been permitted to issue a show-cause notice to Red Bull and give the company an opportunity of hearing before passing any fresh order.

The High Court did not decide the larger question of whether Red Bull can legally use the “Energy Drink” descriptor on its products.

Red Bull had challenged the June 30 order issued by an Assistant Director of FSSAI, which directed the company to discontinue the use of the descriptor for its range of caffeinated beverages.

The company had also challenged a July 17 communication issued by FSSAI asking food safety authorities across States and Union Territories to take action against allegedly non-compliant products.

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According to Red Bull’s petition, the company has been selling its products in India since 2002 using the “Energy Drink” descriptor. It alleged that the FSSAI direction was issued without a show-cause notice or an opportunity to respond.

Red Bull had further claimed that the July communication resulted in enforcement action, including seizure of its products at several locations across the country.

The company had also questioned what it described as a change in FSSAI’s earlier position on the use of the term. It relied on a March 2024 FSSAI advisory, which, according to the petition, permitted the expression “Energy Drink” for products covered by the relevant food categories applicable to caffeinated beverages.

Red Bull also referred to an April 2024 Union Health Ministry press release, as well as licences, import clearances and no-objection certificates issued over the years for its products carrying the same descriptor.

The company had argued that there was no disclosed change in law, regulations or scientific circumstances to explain the subsequent direction.

It also challenged the FSSAI action on grounds including violation of natural justice, arguing that the regulator should have first heard the company before taking a decision affecting its products.

The High Court’s order leaves it open to FSSAI to examine the issue afresh after issuing notice to Red Bull and considering its response.

(Source: ANI)

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