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How can Nestle jump Maggi ban? Compromise is only solution

The real problem of food safety lies not in our laws, but in our inability to create enough testing systems with adequate manpower to do the job consistently and fairly.

August 13, 2015 / 11:38 IST
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R JagannathanFirstpost.com

The Union consumer affairs ministry’s decision to launch a class action suit against Nestle, makers of Maggi noodles, in the National Consumer Disputes Redressal Commission (NCDRC) will be an important test case for such actions in the future.
However, it is in the best interests of the regulators, Nestle and consumers to come to a compromise solution rather than litigate endlessly.

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Nestle was forced to withdraw its Maggi stocks from all over the country in June this year following the discovery of lead above acceptable levels in some samples, and a label that said “No added MSG”. While tests of Maggi noodles sent outside the country to Singapore, Canada and the US appear to have passed their more stringent food safety tests, Nestle’s real battleground is India, where it is contesting the Food Safety and Standards Authority of India’s (FSSAI’s) order and claims that Maggi can be hazardous to health.

The class action suit, which seeks Rs 640 crore in damages from Nestle on behalf of consumers, has two dimensions – one positive, and the other negative. The positive one is the message it sends out about stronger government action on food safety standards. But this will be credible only if the government follows up the action against Nestle with similar actions involving other food products. Also, class action suits have not had a track-record in India; the suit by the ministry may thus be a shot in the dark.