The Delhi High Court has restrained Kwick Living, which sells products under the Beco brand, from continuing its 'War on What’s Hidden' advertising campaign targeting Hindustan Unilever's Surf Excel and Vim products.

The Court has directed it to forthwith pull down, remove, and recall all advertisements in its campaign against HUL's brands Surf Excel and Vim, in any form, format or medium, according to media reports.

Beco’s campaign claimed that laboratory testing detected Benzisothiazolinone (BIT) and Linear Alkylbenzene Sulfonate (LAS) in HUL’s Surf Excel, while LAS was detected in Vim, and linked the ingredients to potential skin irritation and allergic reactions, further claiming its own versions of these products don’t contain these ingredients.

The judgment restrains Beco from publishing or disseminating disparaging advertisements concerning the above named brands. Injunctioning the ad campaign, the Court observed that Beco failed to establish the truthfulness of the allegations made in its campaign.

“An average consumer, or for that matter any non-expert, would neither bother nor have the expertise to analyse or deconstruct the narrative contained in the impugned campaign, nor would they reason with themselves or undertake a critical, scientific analysis of whether the statements contained in the impugned campaign are true,” stated the HC order, as per media reports.

The court further said the campaign was not merely comparative advertising aimed at praising Beco’s products, but denigrated HUL’s products while being presented scientifically verified.

“The impugned campaign further cites complex chemical names, proportions, and percentages of the harmful ingredients to give the viewer a sense of certitude that the plaintiff’s products are risky to use. In the opinion of this court, in doing so, the defendant prima facie crosses the permissible contours of comparative advertising,” the order read.

HUL had told the court that while companies are free to advertise their own merchandise, claiming that a competitor’s goods are physically harmful crosses into unlawful defamation.

Welcoming the Delhi High Court judgment, HUL released a statement: “At HUL, we believe that consumer trust is built on responsible advertising. Fair competition must be rooted in truthful communication and respect for intellectual property and the reputation of competing brands.” 

It stated that the judgment “reaffirms the trust and confidence that millions of Indian consumers” have in its products, including the brands Surf Excel and Vim. It further added that it remains committed to ensuring that all its products are “formulated, manufactured and safety-assessed in accordance with applicable regulatory requirements and rigorous global safety standards.”

Beco co-founder, Aditya Ruia, has meanwhile responded to the court’s observation that this specific campaign ‘crossed the contours of permissible comparative advertising’.

In a post on LinkedIn, Ruia stated that they respect the court’s finding and are complying with the order  that the advertisements in question be taken down “in full.” 

He noted that for the legal and marketing fraternity, the Court's order is limited to this campaign. “It does not bar Beco from carrying out comparative advertising in relation to the products in question going forward, and it does not close the question we raised. We intend to keep asking it, within the guardrails the Court has laid down.”

Comparative advertising has a legitimate place in a competitive market, so does a consumer's right to information, he further observed. “Those are principles Beco has stood for from the beginning, and we will keep standing for them. More than either of the two sides in court, it is the consumer who gains most from this conversation. Then the category. And in a small way, Beco.”

“Ingredient transparency is not a campaign tactic. It is the standard all products should aspire to,” he declared, adding that the brand is committed to keep building for it. He further thanked the brand’s partners who planned and executed this campaign over the past four weeks “for standing tall” with Beco.

HUL had moved the Delhi High Court last month against home-care brand Beco over an advertising campaign claiming that HUl's Surf Excel and Vim contain chemicals capable of causing skin irritation and allergic reactions. HUL's suit had been filed against Beco’s parent company, Kwick Living (I), alleging commercial disparagement and trademark infringement.

Founded by Aditya Ruia, Akshay Varma, and Anuj Ruia in 2019, Beco makes ‘eco-friendly’ consumer products in the home care and personal care segments.