Patanjali Faces The Wrath of the Supreme Court: Is The Business In Danger?

Patanjali, and its founders  Baba Ramdev and Acharya Balkrishna, are being held in contempt by the Supreme Court due to their advertisement of objectionable and misleading advertisements for their ayurvedic products. While experts of the advertising industry acknowledged that some level of exaggeration in advertising claims is typical, this strict action by the Supreme Court indicates the seriousness of it.

Patanjali Sued for Misleading Ads

The Indian Medical Association (IMA) has sued Patanjali Ayurved for claiming and advertising medical cures and demeaning modern medicine. Despite a prior undertaking to stop misleading ads, The company violated it this year followed by which it was taken to court again. The Supreme Court then initiated contempt action against Baba Ramdev and Acharya Balkrishna and asked them to publish a public apology through the media. 

False Claims 

During the COVID-19 pandemic, in 2021, It launched Coronil and asserted that Coronil received certification from the Ayush Ministry under the WHO’s certification scheme which Ramdev claimed to be the “first evidence-based medicine for COVID-19”. 

However, the IMA strongly opposed this claim, denouncing it as a blatant lie. Arguments escalated between Patanjali after Ramdev criticized allopathy as a “stupid and bankrupt science.” In response, the IMA issued a legal notice to Ramdev, demanding an apology. Patanjali Yogpeeth responded by stating that Ramdev was simply reading from a forwarded WhatsApp message and holds no hostility toward modern science.

During the proceedings, the Supreme Court emphasized that its concerns extend beyond just Patanjali to include all FMCG and pharmaceutical companies that deceive consumers through their false claims and ads.

Conclusion: Despite repeated warnings and opportunities to rectify their actions, Patanjali’s persistent actions of publishing misleading advertisements led to strong condemnation from the Supreme Court. Although Patanjali mentioned that they had issued an apology in 67 newspapers,  the court rejected the apology on April 10, noting they were sent to the media first instead of the court, emphasizing the seriousness of the matter. Patanjali faces imminent legal consequences for their defiance and failure to comply with court directives. Patanjali’s failure to comply with court directives places the company on the brink of facing significant legal consequences along with impacting its reputation and overall business going ahead.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.