The Food Safety and Standards Authority of India (FSSAI) has sent show-cause notices to the quick commerce firm Zepto and three other food companies, according to Inc42. The regulator is continuing its review of how goods are described and sold on digital marketplaces. These companies must now provide detailed responses to avoid potential fines or temporary license suspensions.
Zepto received its notice after a customer posted on social media about receiving expired packets of besan, a type of gram flour. Inc42 reported that the authority asked the platform to share order records, seller information, and warehouse tracking data. The regulator also requested evidence showing how the company withdrew the stock and refunded affected customers. This new scrutiny adds to other legal matters Zepto has disclosed in its draft prospectus filed with the markets regulator, including consumer protection cases and a review of its ownership structure.
Three other firms were also targeted for specific marketing issues. Bakelite Food Processing, which owns Malpani Foods, was criticized for calling its Puneri Cream Roll creamy even though it uses vegetable fat and margarine instead of dairy. BMS Lifescience was cited for selling cranberry capsules under an expired registration and making health claims about kidney and urinary tract issues without full approval. HealthyHey Foods faced notices for ingredient lists that differed between its own website and Flipkart, along with the use of the phrase "100% Natural" without complete regulatory clearance.
The FSSAI has recently increased its oversight of e-commerce platforms, having previously addressed BigBasket and Flipkart over promotional errors. Inc42 noted that the authority also began adjudication proceedings against beverage brand Storia for its pomegranate juice. The product contained only 4% pomegranate concentrate despite branding that suggested a higher fruit content. Storia also received a fine from the Central Consumer Protection Authority for using the term "100%" in its labelling without sufficient evidence.
These latest actions fit into a broader pattern of the FSSAI identifying labelling practices in the digital food market. The regulator has previously penalised multiple platforms, including Amazon, Swiggy Instamart, and Zepto, for misbranding and displaying prohibited food articles. For Zepto, this fresh scrutiny occurs as the company pauses its initial public offering until May 2027 to resolve investor valuations and pursue a pre-IPO placement.