HUL and Mamaearth Locked in Legal Tussle Over Advertising Claims

The fast consumer goods (FMCG) industry is seeing a fierce legal tug-of-war between Honasa Consumer, the group company of Mamaearth, and industry giant Hindustan Unilever Limited (HUL) engaging in a battle of claims in advertising for sunscreens. Both the companies have taken legal action, alleging misleading and disparaging ads regarding the efficacy of sunscreen products.

Lakme’s ‘SPF Lie Detector Test’ Ad Sparks Outrage

The controversy is over a recent ad campaign by HUL for its Lakme Sun Expert SPF 50 sun lotion. Lakme, in its campaign, claims that some "online bestseller sunscreens" that declare SPF 50 protection really deliver much less, equivalent to around SPF 20. Though HUL avoided the mention of brands in its ads, the pictorial aspects, such as showing yellow bottles standing out from the packaging of Lakme, have angered Honasa Consumer.

Honasa Consumer Files Delhi HC Suit Over Disparagement

Honasa Consumer initiated the first legal action by filing a suit in the Delhi High Court. The company alleges that the Lakme campaign, titled 'SPF Lie Detector Test', is disparaging and derogatory of rival products, particularly one which closely resembles a sunscreen from The Derma Co, a skincare brand owned by Honasa. Senior lawyer Amit Sibal, who argued on behalf of Honasa Consumer, contended in the Delhi High Court that the campaign is targeting digital-first sunscreen brands and not directly naming them. Honasa Consumer demanded the deletion or alteration of the controversial advertisement as well as an interim injunction for its stoppage on different mediums, although the latter was refused.

HUL’s Bombay HC Counter‑Suit Underscores Fierce Market Rivalry

In reply to Honasa Consumer's legal challenge, HUL has also initiated an independent lawsuit against Honasa Consumer in the Bombay High Court. This mutual legal move reflects the ferocity of the competition in the growing Indian sunscreen market, valued at USD 832.32 million with a planned annual growth rate of 6 per cent up to 2030. Industry majors in this segment comprise HUL, L'Oreal, Nykaa, and Honasa Consumer.

Delhi High Court Issues Notice, Sets April 17, 2025 Hearing

The Delhi High Court, following an initial hearing, served a notice to HUL and has set the next hearing for Thursday, April 17, 2025. A single-judge bench of Justice Amit Bansal noted that "on the face of it" the ads issued by Hindustan Unilever seemed to be derogatory in nature, but allowed HUL to argue its case at the next hearing.

LinkedIn Post by Honasa Co‑founder and Lakme’s In‑Vivo Testing Defense

The origin of this legal dispute can be traced to a LinkedIn post by Honasa Consumer Co-founder Ghazal Alagh, which hinted at a deficiency of strong competition in the FMCG space and hence complacency among established players. This was posted in response to HUL's recent Lakme sunscreen campaign. Lakme, in defence, has confirmed that it complies with in-vivo SPF testing, an internationally accepted measure of testing for sunscreen efficacy, and has done so since 2015. In-vivo testing is experimentation or biological process carried out in a living body, e.g., humans.

Precedents and Implications for Comparative Advertising in FMCG

In the course of the early arguments, Honasa Consumer had referred to legal precedents to the effect that although firms may indulge in puffery in reference to their own products, criticizing competing products through advertisements is not allowed. The result of such legal tussles in both the Delhi and Bombay High Courts will carry huge implications for advertisement strategies in the FMCG segment, specifically related to comparative advertisement and claims about product effectiveness. The market will be watching closely as the 'sunscreen wars' rage in the courts.

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