HUL to withdraw Lakmé ad, change product colour amid legal dispute with Derma Co
Hindustan Unilever Limited (HUL), the parent company of Lakmé, informed the Delhi High Court on Thursday that it will withdraw and revise its advertisements after allegations that they disparage Honasa Consumer Limited’s brand, The Derma Co.
According to reports, the company told Justice Amit Bansal that it will remove online posts within 24 hours and withdraw hoardings within 48 hours. HUL also stated that it will change the colour of the product bottle shown in the advertisement from orange to yellow, to avoid any perceived association with The Derma Co’s packaging.
The case is scheduled for further hearing on Monday.
The advertisement in question, titled 'SPF Lie Detector Test', was first aired on 12 April. It includes claims such as 'Says SPF 50 but gives SPF 20' and 'SPF 50, Truth 100', while referencing an 'online bestseller' without naming the brand. Honasa contended that the packaging and colour scheme used in the advertisement closely resembled its own, and that the campaign falsely implied its sunscreen was ineffective.
Senior Advocate Amit Sibal, appearing for Honasa along with Advocate Ankit Jain and a team from law firm Sim & San, argued that the campaign amounted to a 'classic hit and run'. He said the advertisement implied that use of The Derma Co’s sunscreen could lead to skin pigmentation, without any substantial evidence being placed before the Court.
HUL, represented by Senior Advocates Sandeep Sethi and Jayant Mehta, along with Advocate Ajay Bhargava from Khaitan & Co, submitted that it had clinical proof suggesting The Derma Co’s product did not meet SPF 50 standards. HUL also submitted a two-page executive summary of a test report dated 27 February 2025.
Honasa, however, questioned the credibility of the test summary, arguing that it lacked details such as which product was tested. The company presented full reports from two laboratories, including Clinical Research Private Limited, certifying that its sunscreen complies with SPF 50 standards.
Honasa acknowledged that comparative advertising is permissible but argued that HUL had crossed legal limits by suggesting that The Derma Co’s product was not just inferior, but also unsafe and unreliable.
In response, the Court sought clarity from HUL on its willingness to take down the campaign, following which the company agreed to do so. HUL also requested that Honasa remove its counter-advertisements, to which Honasa responded that it had already taken down online posts related to HUL.
The matter will be reviewed again on Monday for further proceedings.
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