Ghazal Alagh's The Derma Co vs Lakme: Court orders for ads to be modified, social media posts removed

Honasa Consumer and Hindustan Unilever filed defamation lawsuits against each other. The Delhi High Court ordered the removal of HUL's Lakme ad.

Honasa Consumer Ltd-- the owner of the FMCG brand MamaEarth-- and Hindustan Unilever Limited--Lakme's parent company--filed defamation lawsuits against each other this week. Today, the Delhi High Court heard the case and directed the Lakme ads to be pulled off.

The Delhi High Court intervened in a legal dispute between Honasa Consumer and Hindustan Unilever over sunscreen advertising.

HUL (Hindustan Unilever Limited) undertook that they will remove their ongoing sunscreen ad campaign and modify it. The modification will include but not limited to removing the term “online bestseller” and the current packaging colour shown is changed.

HUL shared their official statement with HT after the order, “Hi Soumya, we spoke.

*The Final Statement: Attributed to Hindustan Unilever Limited*

"The Honourable Delhi High Court has permitted to continue with the campaign with some modifications. There is no injunction against the Lakme campaign. In return, Honasa has also agreed to take down their social media posts on all platforms.”

“We respect the outcome to continue with our Sun Superiority Campaign with some modifications. This demonstrates the pivotal need for raising awareness around SPF efficacy, transparency, and accountability in the sun care category, keeping consumer interest and safety at the core. Lakmē has been conducting SPF efficacy and safety tests for over a decade, grounded in globally accepted scientific protocols. We have always believed in the power of science to inform product innovation and protect consumer interests. This campaign is part of Lakme’s broader commitment to set a new benchmark for sun protection standards in India. Unfortunately, there are some sellers, who have been falsely claiming SPF 50. In the interest of consumers, upon independent testing by accredited labs, they fall far short of stated claims; misleading consumers on sunscreen, which has skin implications like pigmentation, skin ageing and spots. At Lakme, we will continue to reaffirm our unflinching commitment to integrity, consumer safety, and scientific excellence, and be a leading voice to advocate for transparency and higher standards in skincare, by developing products backed by sound science, research and innovation."

What was the issue between the brands?

HCL has alleged that a recent Lakme sunscreen campaign titled 'SPF Lie Detector Test' unfairly undermines competing products, including one that closely resembles a sunscreen from The Derma Co, another brand from HCL.

HCL moved the Delhi High Court, contending the claims made by HUL as disparaging and misleading. Responding to that, HUL has also filed a separate lawsuit before the Bombay High Court against Honasa Consumer.

Ghazal Alagh's post

The entire controversy started after HCL co-founder Ghazal Alagh, in a LinkedIn post, alleged that the fast-moving consumer goods industry has "lacked good competition" for a long time, leading to large traditional brands becoming complacent.

She was referring to a recent ad campaign from HUL for its beauty brand Lakme's sunscreen, where the market leader has challenged the claims of rival sunscreen brands.

In the campaign for Lakme's SPF 50 sunscreen, launched recently, HUL asserts that certain "online bestseller sunscreens" claiming SPF 50 actually offer far lower protection, closer to SPF 20.

Though HUL, in its campaign, doesn't name any brand, the image and video contrast several yellow bottles with Lakme's packaging and cites in-vivo SPF testing from the last 10 years.

In a statement on social media platforms, Lakme said, "Some brands, currently on the online best sellers list, are claiming to be in-vivo tested; however, their in-market sunscreen product sample delivers SPF 20 against a claim of SPF 50.

In vivo is a clinical method of testing, which means "within the living" and refers to biological processes or experiments conducted within a whole, living organism, such as a human, animal, or plant.

According to German data gathering platform Statista, the Indian sunscreen market is estimated to be around USD 832.32 million. The market will experience an annual growth rate of 6 per cent for the next five years till 2030.

Sun protection is a booming market in India, driven by the high demand for sunscreen products due to the country's hot and tropical climate.

Apart from HUL, other companies include L’Oreal, Nykaa, and Honasa in this segment.