Regulatory digitisation of product labelling in India

Product labelling is not a mere legal obligation; it is a vital link between consumers and businesses. By providing essential information, labels ensure transparency and enable consumers to make informed choices. Traditional physical labels serve the purpose, but India is leading a digital revolution. QR codes and e-labelling provide the same product information but in a clearer form. Consumers can confirm the claims of labelling online, allowing them to make better choices.

The Legal Metrology (Packaged Commodity) Rules, 2011 (LMPC rules), regulate the labelling of packaged products. These require pre-packaged commodities to display prescribed mandatory declarations.

In 2022, the Department of Consumer Affairs (DCA) introduced an interim amendment to the LMPC rules allowing specific mandatory declarations to be provided through QR codes as an alternative to physical labelling. Recognising the benefits of using QR codes, the DCA institutionalised this change by amending the LMPC rules in 2023 and extending the timeline permanently.

The DCA’s “digital approach” to mandatory declarations is keeping up with the fast-evolving regulatory landscape across various sectors such as telecommunication, electronics and pharmaceuticals. For example, the Bureau of Indian Standards Regulations allow electronic information, or e-labelling, for devices with screens. Similarly, the procedure for mandatory testing and certification of telecom equipment permits e-labelling of telecom and related information and communication technology equipment with integrated displays.

The Drugs Rules, 1945, were significantly updated in 2022 to allow crucial information such as generic names, manufacturing dates, expiry dates and brand names for 300 drug brands to be accessed digitally through QR codes. The Drugs Technical Advisory Board has recently proposed allowing QR code labelling to include declarations for anti-cancer drugs, improving the transparency of and accessibility to vital health information.

QR code labelling reduces regulatory burdens without sacrificing consumer protection. The Directorate General of Foreign Trade recently withdrew the track and trace system of barcoding at different packaging levels for pharmaceutical exports. One reason was the implementation of QR code and barcode requirements under the Drugs Rules. This shows increasing regulatory trust in digital declarations.

These efforts are commendable and head in the right direction. However, operational business issues need to be addressed. A major constraint is following the LMPC rules, which require more than 10 mandatory declarations to be shown on the product’s principal display panel. Although some non-core information can be accessed through QR codes, many declarations are still required to be displayed physically. This information is important for consumer transparency, but businesses often cannot find space for all the required information without compromising aesthetics, readability and other details. This is particularly relevant for smaller items such as electronic products, cosmetics and accessories.

Providing so many declarations on the product label leads to information overload, overwhelming consumers. This hinders comprehension and prevents purchasers from making informed choices. Many cross-sectoral regulations require providing a multiplicity of information on the product label. To avoid overlapping product labelling, a forum of regulators should be established on the pattern of the Financial Stability and Development Council. Frequent changes to regulations require frequent labelling amendments. This disrupts businesses’ supply chains. So, amendments, if required, should be made every six months or annually, with adequate consultation.

Overly prescriptive labelling regulations allow pettifogging regulators and inspectors to target businesses for minor infractions such as the height and width of letters and numerals in declarations, etc. Such infringements have no significant impact on consumer interest but force entrepreneurs to incur exorbitant costs. India has provided regulatory ease and efforts towards implementation of uniform labelling regulations should be made. But in a technology-first world, industry and regulators should collaborate to develop practical and balanced solutions to new challenges.

Ameet Datta, is managing counsel, Jasman Dhanoa and Rishikaa are senior associates at ADP Law Offices