Delhi HC asks Ghadi to drop ‘derogatory’ Surf Excel references in ads

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In a recent case that highlights the boundaries of advertising ethics and law, the Delhi High Court issued an interim order on June 20, 2025, directing RSPL Limited, the makers of Ghadi detergent, to remove specific phrases and content from their advertisements that were considered derogatory and targeted against Surf Excel, a detergent brand owned by Hindustan Unilever Limited (HUL). The court found that the manner and tone of the advertisements went beyond permissible advertising and amounted to disparagement of a competitor’s product.

Dispute: Ghadi’s Ads Targeting Surf Excel

Nature of the Advertisements

Ghadi detergent had recently released television and digital advertisements that portrayed a woman entering a shop to purchase a blue-colored detergent. As she was about to select it, actor Ravi Kishan intervened and warned her using phrases like “Na na, yeh dhoka hai” (No, no, this is a fraud) and “Madam, yeh sirf naam mein excel hai” (It only has 'Excel' in the name). Another line in the ads said, “Aapka kare badi badi baatein, dho nahi patey” (It makes big claims but can’t wash properly). The detergent she was about to buy was blue in color, which indirectly referred to Surf Excel, a brand widely recognized for its blue packaging and the word "Excel" in its name.

HUL’s Objections

HUL perceived these references as mockery and ridicule of Surf Excel, especially because the advertisement used phrases that echoed or twisted Surf Excel’s iconic tagline, “Daag Achhe Hain” (Stains are good). According to HUL, the entire advertisement campaign by Ghadi was crafted to influence consumer perception by making Surf Excel appear inferior, overpriced, or ineffective — without directly naming the product, but clearly alluding to it in a way that would be obvious to the average consumer.

Legal Response by HUL

Cease-and-Desist Notice

Before moving to court, HUL first issued a cease-and-desist notice to RSPL Limited, formally asking them to stop airing the ads which, in their view, amounted to unlawful disparagement and a violation of advertising norms. A cease-and-desist notice is a legal tool used by companies to warn others to stop engaging in activities that infringe upon their rights, often to avoid litigation.

Filing of the Lawsuit

When RSPL refused to withdraw or modify the advertisements after receiving the notice, HUL filed a civil lawsuit before the Delhi High Court. In its complaint, HUL claimed that four separate advertisements by Ghadi launched in June 2025 were carefully constructed to ridicule, mock, and cause reputational harm to Surf Excel, amounting to an act of commercial defamation.

Court’s Observations and Interim Order

What the Court Said

Justice Pratibha M. Singh, while delivering the interim order, held that the advertisements appeared to be deliberately structured in a way that indirectly referred to Surf Excel, especially from the point of view of an ordinary layperson. The court emphasized that while comparative advertising is allowed under Indian law, it cannot be used as a tool to tarnish or defame a competitor.

Direction to RSPL

The Court ordered RSPL to remove all such derogatory phrases and references targeting Surf Excel by June 24, failing which they would not be permitted to continue airing those advertisements. This order acts as interim relief  a temporary protective measure granted to HUL until the matter is finally adjudicated. The court has scheduled the next hearing for July 16, 2025.

The Legal and Advertising Concepts

1. Comparative Advertising: Permissible but with Limits

Under Indian law, companies are permitted to use comparative advertising, where one product is compared with a competing product to show superiority in features, price, or performance. However, the comparison must be fair, factual, and objective. It must not mislead consumers or make false or unprovable claims. Most importantly, it must not degrade or mock the competitor.Example of legal comparison: "Our detergent is 20% cheaper than Brand X."Example of illegal disparagement: "Brand X is fake and doesn’t clean well."

2. Product Disparagement

Disparagement occurs when one company defames another’s product through unfair or malicious statements even indirectly. Courts in India recognize this as a form of commercial defamation, and companies can be held legally liable. Even if a product isn’t named directly, if consumers can reasonably identify it, that may be enough to prove disparagement.

3. Cease-and-Desist Notice

A cease-and-desist notice is a formal request made by one company to another, asking them to stop a particular activity that is believed to violate rights such as defamation, copyright infringement, or misleading advertising. It serves as a pre-litigation step and can often resolve disputes without going to court.

4. Interim Relief

Interim relief is a temporary court order granted before the final decision in a case. It’s used to prevent ongoing harm to a party in this case, damage to HUL’s brand reputation. Interim orders are common in trademark, advertising, and intellectual property matters.

Why This Case is Important

This ruling by the Delhi High Court serves as a crucial reminder to businesses that competitive advertising has ethical and legal boundaries. While businesses are allowed to showcase the benefits of their own products, they must not do so by pulling down or ridiculing their competitors. The use of satire, indirect messaging, or suggestive visuals that point clearly to a rival product can be legally challenged and restrained.

In India’s fiercely competitive FMCG market, brand image and consumer trust are essential assets. This case reaffirms the principle that the law protects these assets, and any attempt to undermine a competitor through misleading or mocking advertisements will face legal scrutiny.

What’s Next?

The court has ordered RSPL to comply by June 24, after which the matter will come up for the next hearing on July 16, 2025. At that stage, the court will examine further arguments, including whether permanent injunctions should be issued and if damages are applicable. Until then, RSPL must ensure that the disputed content is no longer aired.

Conclusion

The Delhi High Court’s interim ruling marks an important checkpoint in the regulation of advertising practices in India. It clearly establishes that while comparative advertising is allowed, it must be conducted in good faith, and any attempt to mock, mislead, or disparage a competitor’s product will be subject to judicial intervention. The case between HUL and RSPL will continue to unfold, but it already offers valuable lessons in advertising ethics, trademark respect, and commercial responsibility.

FAQs on Delhi HC Order Against Ghadi Detergent Ads

Q1. What is the dispute between Ghadi and Surf Excel?

Ans. The dispute arose after Ghadi detergent released ads indirectly mocking Surf Excel by using phrases and visuals that referred to its branding, implying it was ineffective or overpriced. HUL (maker of Surf Excel) claimed these ads defamed their product.

Q2. What did the Delhi High Court say?

Ans. The Delhi High Court issued an interim order directing RSPL (maker of Ghadi) to remove derogatory references aimed at Surf Excel by June 24, 2025. The court found that the ads, from a layperson's perspective, clearly referred to Surf Excel and could be seen as tarnishing its image.

Q3. What phrases in Ghadi's ads were considered problematic?

Ans. Phrases like: 

  • “Na na, yeh dhoka hai”

  • “Madam, yeh sirf naam mein excel hai”

  • “Aapka kare badi badi baatein, dho nahi patey”

    These were seen as mocking Surf Excel’s tagline “Daag Achhe Hain” and misleading consumers. 

Q4. Is comparative advertising allowed in India?

Ans. Yes, comparative advertising is allowed as long as it is: 

  • Truthful

  • Factual

  • Not misleading

  • Does not defame or disparage the competitor’s product 

Q5. What is product disparagement?

Ans. Disparagement refers to making false, misleading, or mocking claims about a competitor’s product that can damage its market reputation. It’s a form of commercial defamation, and it's legally prohibited.

Q6. What is a cease-and-desist notice?

Ans. It’s a formal legal warning sent by one party (here, HUL) to another (RSPL) asking them to stop a specific harmful act in this case, airing defamatory ads before resorting to court action.

Q7. What is an interim relief or interim order?

Ans. An interim relief is a temporary order by a court to prevent immediate harm until the case is fully heard. The Delhi High Court granted interim relief to HUL by directing Ghadi to remove the offensive content temporarily.

Q8. Did Ghadi name Surf Excel directly?

Ans. No, but the court held that the phrasing, visuals, and color scheme (blue detergent) clearly indicated Surf Excel, making the indirect attack obvious and actionable.

Q9. When is the next hearing?

Ans. The case is scheduled to be heard again on July 16, 2025, for further legal arguments and possible final directions. 

Q10. Why is this case important?

Ans. It emphasizes that advertising must be responsible. While brands can highlight their strengths, mocking or misrepresenting competitors crosses a legal line and can lead to court intervention.

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