On February 27, the Supreme Court issued a contempt notice to Patanjali Ayurved, the company founded by yoga guru Ramdev, and its managing director Acharya Balakrishna. This notice was in response to the company’s continued dissemination of misleading advertisements claiming to offer permanent cures for various diseases.
The apex court bench consisting of Justices Hima Kohli and Ahsanuddin Amanullah, strongly criticised Patanjali Ayurved for its misleading advertising practices and temporarily banned the company from marketing its products until further notice.
Despite an assurance given to the court in November 2023, wherein the company promised not to release any statements that made unsubstantiated claims about medicinal efficacy or criticise any system of medicine, Patanjali Ayurved persisted in its misleading advertisements. The bench remarked that the entire nation had been deceived by these actions. Furthermore, the apex court also admonished the Union government for failing to take any action against these advertisements despite being aware of them.
What is the case?
The case goes back to the year 2022. In August 2022, the Indian Medical Association (IMA) took legal action in response to a Patanjali advertisement titled “Misconceptions spread by allopathy: Save yourself and the country from the misconceptions spread by pharma and medical industry.”
The petition raised two main concerns: firstly, it accused Patanjali of consistently disseminating misinformation to denigrate allopathy, which it deemed as a deliberate and ongoing campaign. Secondly, it alleged that Patanjali was making exaggerated claims about the efficacy of its drugs, purportedly based on scientific evidence, which contradicted regulations banning such advertisements in the country. According to the IMA, these statements violated both the Drugs and Other Magical Remedies Act, 1954 (DOMA) and the Consumer Protection Act, 2019 (CPA).
In 2017, Patanjali’s Divya Amla Juice, recommended for individuals with diabetes, and Shivlingi Beej were deemed of ‘substandard quality’ by the Ayurveda and Unani Office in Haridwar, as revealed in a Right to Information response.
In December 2022, Nepal’s drug regulator blacklisted Patanjali’s Divya Pharmacy for failing to adhere to WHO’s drug manufacturing standards. Additional reports have also raised concerns regarding Patanjali’s questionable quality control measures and the lack of robust clinical trial evidence.
On November 21, 2023, a Supreme Court bench comprising Justices Ahsanuddin Amanullah and Prashant Kumar Mishra cautioned Patanjali against advertising permanent cures and threatened to levy a penalty of Rs 1 crore for each product making such claims. The court declined to engage in the “Allopathy v. Ayurveda” discourse at that time.
Despite its assurances to the court, pledging no violation of laws, especially regarding product advertising, and refraining from making disparaging remarks about any medical system, Patanjali failed to uphold these commitments. Soon after the hearing, Baba Ramdev praised Patanjali products at a press conference, followed by advertisements appearing in mainstream media in December 2023 and January 2024. These actions contravened the company’s promise to the Supreme Court.
A strong dose
The recent Supreme Court ruling to enforce a ban on Patanjali’s advertisements marks a pivotal step in addressing the ongoing problem of misleading medical advertising.
In a society where many individuals lack sufficient knowledge of medical science and tend to place unwarranted faith in unverified herbal remedies, such advertising practices present a considerable risk. They propagate misinformation and may endorse products that could potentially pose harm to consumers.
Despite efforts such as the collaboration between the Ministry of AYUSH and the Advertising Standards Council of India to tackle misleading advertisements, Patanjali continued to spread misinformation unchecked. The court’s intervention signifies a crucial move towards protecting public health and ensuring accountability in the marketing of healthcare products.
The company persisted even when it was warned by the Supreme Court as early as November 2023 to cease disseminating these assertions or risk substantial fines of up to Rs 1 crore for each product featuring false claims.
Notably, the court reprimanded the government for its apparent negligence, accusing it of turning a blind eye while the nation was deceived. The government could have legally compelled Patanjali to retract its advertisements, which flagrantly contravened Section 4 of the Drugs and Other Magical Remedies Act (DOMA), 1954, as well as the Consumer Protection Act, 2019.
Under the current legal framework, dissemination of misleading advertisements carries penalties. A first offence under the Drug and Magic Remedies (Objectionable Advertisements) Act (DOMA) could lead to imprisonment for six months and/or a fine. For subsequent offences, the punishment may extend to one year.
Conversely, the Consumer Protection Act imposes stricter consequences, with a potential imprisonment term of up to two years and a fine of around Rs 10 lakh for violations. Repeat offences escalate to a five-year imprisonment term and a fine of approximately Rs 50 lakh. The government has committed to investigating allegations and proposing appropriate actions. Strengthening advertising regulations for both Ayurvedic and over-the-counter (OTC) allopathic drugs should be a priority in this regard.
Both operate in grey areas. For instance, DOMA does not recognise a list of drugs for which any advertisement is prohibited. But that still leaves the field dangerously open for all manner of products, including some vaccines. As for advertisements for ayurvedic products, these are more common than their allopathic counterparts because they do not require pre-approval or any stipulation of minimum information for the consumer. Indians who struggle with medical expenses are particularly vulnerable to the growing promotion of an “indigenous” medical system supposedly offering cheaper remedies.
Patanjali’s prosperity and its ability to evade legal scrutiny highlight a troubling issue: the lack of accessible and affordable healthcare. The underprivileged find themselves trapped, facing a choice between enduring delayed treatment from conventional medicine or falling victim to misleading and exploitative advertising, exacerbating their plight.
Deceptive advertisements not only breach legal standards but also endanger public health by disseminating misinformation about evidence-based treatments and targeting vulnerable individuals. Patanjali’s misleading advertising practices are acknowledged as a critical public health concern demanding urgent intervention. The recent Supreme Court ruling represents a positive initial move towards overhauling the regulations overseeing this medical system.
Shivanand Pandit is an autonomous finance and tax adviser. He has 28 years of experience in finance, accounting, taxation laws, cost management, wealth management, audit, corporate and banking laws.