Product labels: what they reveal — and what they don’t

Product labels are the first point of contact between consumers and the products they purchase. They play a critical role in the consumer’s decision-making process. Labels are much more than just decorative packaging. Labels are essential for brand recognition and advertising. A well-designed label can be a powerful marketing tool and facilitates to make an informed choice and empowers the consumers to differentiate between genuine and sub-standards products and services.

Labels are designed to inform, but more often than not, they are carefully crafted to reveal just enough and hide the rest. Labels can often be misleading, deceptive, omitting crucial information or presenting data in a way that can deceive consumers. In most cases labels don’t reveal but conceal information about a product’s safety, quality, and efficacy. There is a saying that – if labels told the whole truth, 80-90% Marketing Managers might be out of their job.

Role of Product Labels

Product labels carry the brand’s identity, such as its logo, colour, or style and play a vital role in building consumer loyalty and recall value. Today’s consumers are more informed and demand transparency and accountability. Labels are supposed to provide the following information:

• Name of the product and its manufacturer
• Ingredients   
• Nutritional content
• Instructions for Use
• Expiry date or shelf life
• Health & Safety Warnings
• QR Codes on the product label can provide more information to consumers about the product, its manufacturing process, health benefits, and customer reviews.
• RFID Tags. Some products these days are equipped with Radio Frequency Identification (RFID) tags, which provide real-time data on product movement and stock levels.
• Translation of information in multiple languages, especially food and pharmaceuticals to ensure that consumers understand the product details regardless of their language.
• Batch or Lot Numbers – to trace the product’s production history and source. This can help a company trace and quickly recall a potentially harmful or defective product from the market in the event of a consumer complaint.
• Helpline number for sharing feedback on product quality and consumer complaints.

Do terms like “natural,” “organic,” “sugar-free,” or “clinically proven” mean anything?

A beauty label can be more illusion than information — promising glow while hiding the ingredients that don’t.

Manufacturers often advertise the USPs of the product, such as “eco-friendly,” “organic,” “cruelty-free”, “sugar-free,” gluten-free” or “clinically tested on the product label. For instance, a cosmetic company may mention on the label that its products are “cruelty-free” – this shows its commitment not to test the product on animals.

Manufacturers often use terms like “natural,” “organic,” “sugar-free,” and “clinically proven” on product labels, but their meanings can vary depending on the context and the regulations in place. While they may sound reassuring, they don’t always mean what consumers expect or imply. Let’s see what do some of these terms mean:

Natural – it means that the product is made from ingredients found in nature. However, there is no standard definition of “natural” in many countries, including the U.S. and India. People often believe that “natural” means healthy or free from chemicals, but this is not always true. In many cases, products have been branded or labelled as “natural” even when they contain artificial additives or preservatives.  

Example: A drink containing artificial sweeteners, flavours, or colorants – can be labelled and sold as “natural”. 

Organic – it means agricultural products grown without synthetic fertilizers, pesticides, or genetically modified organisms (GMOs). Organic is considered healthy, eco-friendly, and better for the environment. To use this label, products must meet strict criteria defined by certification bodies like the U.S. (USDA Organic) and India (India Organic certification). This includes ensuring that farmers follow organic practices and the product contains a minimum percentage of organic ingredients (usually 95% or more).

Sugar-Free – it means that the product doesn’t contain any added sugars (sucrose, glucose, etc). Many consumers think that sugar-free products are healthy and won’t raise blood sugar levels. However, this does not necessarily mean that the product has no sugar at all, the same product may still have an adverse effect on the consumer’s health because of the artificial sweeteners. In many countries, products labelled as “sugar-free” must contain less than 0.5 grams of sugar per serving, but they may still contain sugar alcohols or artificial sweeteners (e.g., aspartame, stevia).

Example: A sugar-free soda might use artificial sweeteners like aspartame or sucralose, which contain little to no calories but can still affect the taste and metabolism.

Clinically Proven – it is a marketing term that suggests the product has been tested in clinical studies or scientific trials. Terms like clinically proven give the impression that the product is scientifically validated or endorsed by medical professionals, but the actual clinical evidence backing this claim can vary. There is no uniform definition or requirement for products labelled as clinically proven. Some companies may conduct small-scale, biased studies or use dubious data to support their claim.

Example: A skin cream that claims to be “clinically proven to reduce wrinkles” may have been tested on a small sample group, but the results may not be as conclusive as consumers assume.

What Should You Look For?

• Look for official logo of a certification body (e.g., USDA Organic, EU Organic).

• Don’t just trust buzzwords—read the ingredient list and look for third-party testing or clinical study  

Terms like “natural”, “organic”, “sugar-free”, and “clinically proven” often sound good but aren’t always harmless as they pretend to be. Always read the fine print and be aware of any third-party certifications that can help clarify what those labels truly represent.

Examples of Misleading Labels in India

There have been many instances in India where product labels have concealed critical information or presented misleading claims.

Patanjali’s ‘Putrajeevak Beej’

Patanjali Ayurved’s claimed to have launched a natural herbal product called ‘Putrajeevak Beej,’ which could treat infertility. The implication that it could ensure the birth of a male child led to public outcry and legal scrutiny. The controversy led a growing demand that provide truthful information on the product label.

Nestlé’s Maggi Noodles controversy

Maggi faced a major controversy in India In 2015, when the Food Safety and Standards Authority of India (FSSAI) alleged that it contained excessive levels of lead and monosodium glutamate (MSG), despite the label claiming “No added MSG.” This led to nationwide recalls and a significant loss of consumer trust.

Bournvita’s Health Claims

Cadbury faced intense criticism when it was publically exposed that its product for children called Bournvita which claimed to have many health benefits, actually contained high sugar content and artificial colorants. The incident raised questions about the ethics of marketing products to children and the need for regulatory oversight in India.

A2 Milk and Ghee Labels

Many ‘A2’ products in market were being sold at premium prices without any clear evidence of their benefits as compared to normal milk or ghee. As a result the FSSAI had to step in and banned the labelling of dairy products as ‘A2’ unless scientifically proven. The idea was to protect consumers from unscientific marketing practices.

Global Examples of Misleading Labels

Misleading labelling is not confined to India. Around the world, consumers have been misled by deceptive product labels.

Barilla’s ‘Made in Italy’ Pasta

Barilla, a leading pasta manufacturer, faced a lawsuit in California for labelling its products as “Italy’s #1 Brand of Pasta,” implying that the pasta was made in Italy. In reality, most of Barilla’s pasta sold in the U.S. was made in U.S. and Canada.

Greenwashing in the Fashion Industry

There have been many instances where companies have tried greenwashing, or marketing their products as environmentally friendly without substantial evidence. For instance, H&M’s was accused of misleading consumers when reports exposed that the company was using conventional cotton – not organic cotton as it claimed.  

‘Low-Fat’ Foods with High Sugar Content

Many ‘low-fat’ foods contain high levels of sugar to compensate for the loss of flavour. Nutrition experts warn that these products can be misleading, as they may still contribute to health issues like obesity and diabetes, despite their ‘low-fat’ labelling.

The Case of ‘Frozen Dessert’ vs. ‘Ice Cream’

A notable example of misleading labelling is the distinction between ‘frozen dessert’ and ‘ice cream.’ In many countries, including India, ‘ice cream’ is defined by specific standards, such as a minimum milk fat content. Products labelled as ‘frozen dessert’ often contain vegetable oils and other non-dairy ingredients, making them cheaper to produce but potentially less healthy. The use of the term ‘frozen dessert’ allows manufacturers to bypass the stricter regulations associated with ‘ice cream,’ leading to consumer confusion.

Conclusion

Product labels are a vital tool for consumers, providing essential information about the products they purchase. However, as demonstrated by various examples from India and around the world, labels can also be a source of deception. It is crucial for consumers to be vigilant, for manufacturers to adhere to ethical marketing practices, and for regulatory bodies to enforce strict labelling standards to ensure consumer safety and trust. In a recent order pronounced by the Hon’ble Supreme Court of India, all the States in India are mandated to establish an advertising monitoring cell to curb the menace of misleading and deceptive advertisement, which should also look at labels as tools of advertisements.