India’s Food Safety and Standards Authority (FSSAI) has identified multiple direct-to-consumer (D2C) food brands for misleading claims, but many of these products continue to be sold with the same claims on quick-commerce apps like Blinkit and Zepto, raising fresh questions about regulatory compliance and platform accountability.

  • Over a dozen food brands flagged for misleading claims by FSSAI still sell products on top quick-commerce apps.
  • Blinkit and Zepto are among platforms where flagged products remain, despite regulatory notices.
  • New inventory-led e-commerce models complicate assigning responsibility under Indian law.

What happened

In June 2026, the Food Safety and Standards Authority of India (FSSAI) sent notices to 14 D2C food companies, including Troovy, Storia, and Two Brothers Organic Farms, for violations involving misleading product claims and branding. These notices were issued under Section 32 of the Food Safety and Standards Act, 2006, which requires companies found in violation to take corrective action or face penalties.

Despite these regulatory actions, many of the flagged products continue to be sold with the same misleading claims on prominent quick-commerce platforms such as Blinkit, Zepto, Swiggy Instamart, Amazon Fresh, and Flipkart Minutes. An analysis revealed that of 163 products flagged since 2022, nearly 120 remain available, often displaying the original packaging with deceptive claims intact.

Why it matters

The continued availability of flagged products deepens concerns about enforcement efficacy within India’s food regulatory framework, which imposes a maximum fine of Rs 10 lakh—a sum seen as insufficient compared to the potential sales revenue of large food companies. This regulatory gap risks undermining consumer trust and public health objectives.

Further complexity arises from the quick-commerce platforms’ evolving business models. Blinkit, for example, has shifted from acting solely as a marketplace to holding inventory directly, making it a seller under Indian law and potentially liable for misbranded products. Zepto and Swiggy Instamart are reportedly moving towards similar inventory-led models, which raises unresolved legal questions given India’s foreign direct investment policies restricting foreign ownership in inventory-based e-commerce.

What to watch next

Key developments to monitor include the response of Blinkit, Zepto, and Instamart to FSSAI’s notices and whether these platforms adjust their product listings to comply with regulatory directives. Their approach to enforcing brand and product claim accuracy will be a critical test of accountability in India’s fast-growing quick-commerce sector.

The evolving regulatory landscape around online food sales and foreign ownership restrictions will also be pivotal. With platforms navigating complex ownership restrictions and legal liabilities linked to misleading claims, future amendments to the Food Safety and Standards Act or FDI policy could reshape how these e-commerce players operate in India.

Source assisted: This briefing began from a discovered source item from MediaNama. Open the original source.
How SignalDesk reports: feeds and outside sources are used for discovery. Public briefings are edited to add context, buyer relevance and attribution before they are published. Read the standards

Related briefings