NEW DELHI, Aug. 12 (UPI) — The Indian government is suing Nestle for $100 million for apparent “unfair trade practices” over misleading consumers through advertisements for its Maggi noodles product.
The Food Safety and Standards Authority of India recently banned Maggi noodles, a popular product in the country, and accused Nestle of failing to comply with food safety laws, stating the instant noodles contain “unsafe and hazardous” amounts of lead.
The company has challenged the ban in India’s Bombay High Court, where a verdict is expected soon, according to BBC News.
The Maggi noodles are also scrutinized in India for its high content of monosodium glutamate, a taste enhancer. Nestle has already destroyed about 400 million tons of Maggi products.
Nestle controls about 80 percent of India’s instant noodles market. The company announced it will not speak of the lawsuit, made by the Indian government on behalf of consumers, directly until it receives an official notice about the complaint from India’s National Consumer Disputes Redressal Commission.
“The noodles made for the export market are produced on the same manufacturing lines as those for the Indian market,” Nestle said in a statement about the ban. “We use the same recipes and raw materials as we use for domestic markets… Food standards authorities in U.S., Canada, U.K., Singapore, Australia and New Zealand have all tested samples of Maggi noodles and confirmed that they are safe to eat.”
Nestle shares fell by nearly 5 percent on Wednesday as the pending lawsuit against the company was announced.
Comment count on this article reflects comments made on Breitbart.com and Facebook. Visit Breitbart's Facebook Page.