New Delhi: The Delhi High Court has delivered a significant ruling directing RSPL Limited to remove derogatory and defamatory phrases from its Ghadi detergent advertisements, emphasizing the importance of fair advertising practices and the protection of competitors from deliberate disparagement.
Justice Prathiba M. Singh, presiding over the vacation bench, made crucial observations on the limits of comparative advertising while hearing the commercial suit filed by Hindustan Unilever Limited (HUL) against RSPL Limited. The suit pertained to four television and digital advertisements launched in June 2025.
The court noted, “The present suit has been filed by the Plaintiff – Hindustan Unilever Ltd. – seeking an injunction against the Defendant – RSPL Ltd. – from disparaging the Plaintiff’s product, i.e., Surf Excel detergent.”
Addressing concerns about the impugned advertisements, the court observed: “The impugned advertisements in the present case are four commercials launched by the Defendant through multiple television and digital platforms for its ‘Ghadi’ detergent powder, which have allegedly targeted, ridiculed, and made unsubstantiated derogatory claims about the Plaintiff’s flagship product, ‘Surf Excel.’”
The court highlighted legal principles governing comparative advertising, stating: “It is permissible for an advertiser to undertake an advertising campaign to promote its own product, so long as the same does not deliberately tarnish or defame a competitor’s product… While puffery is permissible, defamation and tarnishment are not.”
In a specific directive, the court instructed: “The Defendant shall carry out the proper amendments in the impugned advertisements by 24th June 2025 and only thereafter telecast/broadcast the impugned commercials.”
The court emphasized the removal of specific derogatory phrases that clearly target Surf Excel, including expressions such as “Aapka kare badi badi baatein par dho nahi paate” (“Your product makes tall claims but cannot wash”), “Na Na, yeh dhoka hai” (“No, no, this is a fraud”), and “Iske jhaag acche hai, daam acche hai” (“Its foam is good, price is good”).
The court also noted that HUL has a substantial market presence, with the Surf brand generating approximately ₹11,000 crore in annual revenue, and that the Surf Excel brand was launched in 1996.
RSPL’s counsel contended that the company does not have a monopoly on terms like “Excel,” and that blue packaging is commonly used by various detergent brands. However, the court found that the advertisements contained elements that clearly referenced Surf Excel, including the use of light and dark blue packaging, the term “XL Blue,” and expressions derived from HUL’s well-known “Daag Acche Hain” campaign.
The next hearing has been scheduled for July 16, 2025, before the Roster Bench. The court directed the parties to file replies and rejoinders within the stipulated timelines.
Case Title: Hindustan Unilever Limited vs. RSPL Limited