Patanjali ayurved is a multinational conglomerate company which produces food
products , cosmetics, ayurvedic medications, and personal care items, with the
vision of expanding the country with the advancement of Ayurveda, serving as a
model for the rest of the globe. In 2024 , Patanjali Ayurved , founded by Baba
Ramdev founded themselves under the accusations of deceptive marketing tactics,
false claims, and misleading advertisements finding themselves in centre of
ethical and legal disputes.
This research paper will primarily focus on brief
overview of the case including the background of the case and the allegations
involved in the case. The research paper will also focus on the important key
legal issues of the case including the contempt of court notice faced by the Patanjali Ayurvedic . The paper will end with the analysis of the verdict drawn
upon by the court regarding the case.
Brief Introduction To The Case:
Utilizing the knowledge of Ayurveda, Patanjali Ayurveda Limited is founded by
very popular Indian gurus , Baba Ramdev and Acharya Balkrishna. The company
Patanjali Ayurveda is a prominent producer and exporter of Herber and Ayurvedic
Products , including medications , processed meals , drinks, personal care,
household care items etc. for the service of the people in the society. However
because of the accusations of deceptive marketing tactics, false claims, and
misleading advertisement , the corporation found itself in the centre of legal
as well as legal ethical dispute.
The Indian Medical Association commonly known as the IMA filed the lawsuit in
response to the publication of a contentious commercial called ' Misconceptions
spread by Allopathy' , which basically criticized the modern medicine and
allopathic practices in our country .
The co-founder of the company Patanjali Ayurveda Limited, Baba Ramdev further
escalated the dispute by calling allopathy a 'bankrupt science' in reference to
the remarks he made. False information was allegedly disseminated by the
advertisements , especially on COVID – 19 treatments.
The main contention of the case was that some domestic goods, cosmetics, and
health supplements had been promoted with inflated health advantages , which
basically raised questions about the accuracy of the claims and their compliance
with consumer protection regulations.
By prohibiting Patanjali, from running these commercials and tying its brand to
goods that make unproven medical claims like to cure illnesses, the Hon'ble
Supreme Court of India took decisive action against them. As despite numerous
warnings by the Hon'ble Supreme Court of India , Patanjali continued its method
and attempted civil contempt of court.
The Contempt of Court Act, 1971 was enacted to define and limit the powers of
certain courts in punishing contempt of courts. Therefore, the Courts have to be
judicious while exercising the powers conferred by the Act.
Civil Contempt as defined under Section 2 (b) of Contempt of Court Act 1971 as
wilful disobedience to any judgement , decree, order , direction, writ or other
processes of a court or wilful breach of an undertaking given a court. In this
particular case, Patanjali found itself committing a civil contempt against the
hon'ble Supreme Court of India .
Background of the case
The legal dispute of the case began when Patanjali started advertising it's
goods , especially in the light when the world was facing a severe pandemic in
2020 , implying that their alternative ayurvedic remedies might either cure or
prevent illness like COVID-19 . This also featured the co-founder of the
company, Baba Ramdev branding allopathy a 'bankrupt' science.
In August 2022, the Indian Medical Association, commonly known as the IMA filed
a petition against Patanjali for calling allopathy as a 'bankrupt science'. The
IMA also filed a petition against Patanjali alleging that the company
disseminated false material and undermined public confidence in allopathic
medicine , especially related to the vaccines, diabetes, asthma and other
diseases.
In November 2023 , Supreme Court had already issued an order forbidding
Patanjali from making deceptive promises in advertisement . The court served a
contempt notice against Patanjali and its leaders , Baba Ramdev and Acharya
Balkrishna, as a result of the company's continuous dissemination of these
advertisements in defiance of the court's ruling.
This notification was sent in response to Patanjali's publication of
advertisement making repeated claims of curing chronic illness and holding a
news conference to support these claims.
Disregarding the authority of the court or interfering with administration of
justice is referred to as contempt of court. In this instance, contempt of court
proceedings were initiated due to Patanjali's disregard for earlier court
orders, which had mandated that they stop their deceptive advertising. The court
stressed that such actions demonstrated the disrespect for the court's orders in
addition to misleading the public at large.
In this case, contempt of court was a major factor . Contempt proceedings were
instituted after it was discovered that Patanjali has broken its prior promises
to the court. The company apologised , but the court rejected its early attempts
, stating that the statements were not made in a way that made them seem genuine
. The contempt charges were eventually dropped in August 2024 after Patanjali
eventually apologised appropriately and tried to follow the court's
instructions. The court emphasized the need of accountability and moral
advertising practices , emphasising that any apologies in contempt instances
must be unconditional and genuine.
Even though the Hon'ble Supreme Court strongly objected to Patanjali's conduct
by the beginning of 2024. The Hon'ble Supreme Court threatened more severe
penalties for Patanjali's ongoing non-compliance in addition to prohibiting the
company's ads for illnesses covered under Drugs and Magic Remedies Act. The
contempt of court aspect further intensified the legal consequences , which
demonstrated the judiciary's strict adherence to its decisions, public
confidence in legal system and healthcare advertising standards .
Key legal issues of the case:
Multiple legal issues were involved in this specific case misleading
advertisement and contempt of court including the following:
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Untrue statements: During the pandemic, Patanjali's products were promoted as a means of efficiently preventing or curing COVID-19, a serious worry. It was determined that these statements violated multiple legal prohibitions because they were unsupported and deceptive.
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Criticism of Allopathy: The commercials featured disparaging remarks about allopathic medicine, which confused the public and increased their suspicion of conventional medical procedures. Co-founder Baba Ramdev referred to allopathy as a "bankrupt" science, which was interpreted as damaging misinformation.
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Regulatory Violations: The Drugs and Magic Remedies (Objectionable Advertisements) Act of 1954 and the Consumer Protection Act of 2019 were both broken by Patanjali's commercials. The propagation of false information about medications and their effectiveness is forbidden by these regulations. Penalties for making such false statements are outlined in the Act and include fines and jail time.
The element of contempt of court arises from Patanjali's disobedience of earlier
court directives and warnings.
Regarding their deceptive advertising, Patanjali had already received warnings
from the Supreme Court. Patanjali disregarded the court's authority by carrying
with the advertisements in spite of these warnings.
In Indian law, contempt of court refers to any action that shows disrespect for
the authority of the court or obstructs the administration of justice.
Contempt of court is divided into two categories mainly, which includes being
disrespectful to the legal authorities in the courtroom and wilfully
disregarding a court's order. When a court determines that an activity qualifies
as contempt of court, it has the right to issue an order, known as "found" or
"held," declaring that an individual or group has disregarded or disregarded the
court's authority during a trial or hearing. This is the judge's most powerful
authority to punish behaviour that interferes with the court's regular business.
Contempt proceedings are especially used to enforce equitable remedies, such as
injunctions.
In this specific case, it was considered disrespectful for deceptive advertising
to continue running in spite of warnings by the hon'ble court .
When found in contempt, Patanjali could face severe consequences, including
hefty fines and imprisonment. The participation of the Court draws attention to
how grave the offences are and how important it is to follow court orders.
Because it makes it clear that persistent disobedience of court orders won't be
accepted, the Supreme Court's intervention is crucial. Other corporations can
use this as a precedent, which strengthens the legal requirement that they abide
by court decisions
Recent verdict of the case:
The Court noted the order dated 23 April 2024, in which it was observed that the
apologies tendered by the contemnors were in a small box with fine print so
small that reading the apologies without a magnifying glass was impossible. This
observation was made after reading newspaper cuttings of the public apology.
After that, the apology was printed in bold type with a readable font size.
The Bench went on to discuss the difference between a qualified and an
unconditional apology, ruling that any apology made by a party involved in a
contempt case had to be both unconditional and unqualified. Such an apology must
also demonstrate that it has been given with a genuinely fide intention and not
just to wriggle out of a tight situation. Apologising with qualification is like
throwing darts. It could either have a positive consequence or a negative
result. The contemnor should be prepared to deal with the fallout from an open
rejection if he offers a conditional apologies and hopes that fortune will
decide how the apology turns out.
The Court stated on November 21, 2023, that it received an assurance that no
trite remarks about the medicinal benefits of Patanjali products or against any
medical system would be made public in any way. The Court stated that the fact
that the contemnors acknowledged that this Court had rendered an order on
November 21, 2023, at the press conference, shows that they were aware of the
undertaking given.
Despite this, they made derogatory remarks about doctors in practice, claiming
that they were disseminating the myth that 'diseases like B.P., thyroid, sugar,
asthma, arthritis, kidney and liver failure' and hence had no solution. The
Court stated that "even though the contemnors' initial behaviour before they
formally apologised to the Court demonstrated that they had broken the
agreements they had made with this Court, they have since made efforts to make
amends," after they formally apologised to the Court.
The Court noted that, while the wisdom of submitting an unconditional apology
dawned belatedly on the defendants after the Court rejected their first attempt
to provide a qualified apology, their subsequent conduct suggests that they have
taken genuine attempts to purify themselves. Thus, the Court accepted the
contemnors' apology and closed the case.
The Court also advised them to strictly adhere to the conditions of their
agreements. The Court stressed that any subsequent stubbornness on the part of
the contemnors, whether by act, action, or speech that could be seen as a
violation of the Court's orders or a breach of the conditions of the
undertakings, will be severely scrutinised, with serious repercussions.
Thus, the Court closed the present proceedings and discharged the show cause
notice issued to the contemnors.
Conclusion:
The Patanjali fake advertisement case of 2024 raises serious legal concerns
about misleading advertising techniques and the consequences of contempt of
court. Patanjali's case emphasises the necessity of ethical advertising
standards and compliance with legal frameworks established to protect consumers
and maintain the integrity of the healthcare system. The convergence of consumer
protection statutes and contempt of court demonstrates the judiciary's
dedication to preserving public trust in medical advertising and practices.
Patanjali's contempt of court charges emphasised the company's disregard for
judicial instructions, prompting tougher legal ramifications. The case
emphasised the judiciary's role in establishing corporate accountability and
protecting the public from deceptive advertising. The outcome of this lawsuit
represents a key milestone in making businesses accountable for their legal
conduct.
The contempt of court accusation was essential in emphasising the gravity of the
circumstances. By bringing up the possibility of disciplinary measures against
Patanjali's leadership, the Court displayed its commitment to upholding the
judicial process.
This case sets a precedent for future corporate accountability in advertising
strategies, as well as the penalty of contempt of court.
Bibliography:
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https://www.scconline.com/blog/post/2024/08/13/patanjali-misleading-adscase-supreme-court-drops-contempt-of-court-charges-against-baba-ramdev-acharya-balkrishna
- https://patanjaliayurved.org/vision mission.html
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