HUL to Pull Lakme Sunscreen Ad After Derma Co Dispute, Agrees to Revise Content and Packaging

HUL to Pull Lakme Sunscreen Ad After Derma Co Dispute, Agrees to Revise Content and Packaging

In a significant development in India’s competitive skincare industry, Hindustan Unilever Limited (HUL), the parent company of Lakme, told the Delhi High Court on Thursday that it will withdraw its controversial sunscreen advertisement allegedly disparaging Honasa Consumer Limited’s Derma Co brand.

The Fast-Moving Consumer Goods (FMCG) giant committed to removing the ad’s online versions within 24 hours and physical hoardings within 48 hours. HUL also agreed to change the ad’s visuals—specifically altering the color of the sunscreen bottle from orange to yellow to avoid resemblance to Derma Co’s packaging.

The now-pulled advertisement, which aired on April 12, 2025, featured a segment called the “SPF Lie Detector Test,” accusing an unnamed “online bestseller” of misrepresenting its SPF levels. While the product wasn’t named directly, visuals and cues clearly mimicked Derma Co’s design. Statements in the ad included “Says SPF 50 but gives SPF 20” and “SPF 50, Truth 100,” prompting Derma Co to file a legal complaint, citing reputational harm and misleading consumer messaging.

Legal Clash: Allegations and Defenses

Representing Honasa, Senior Advocates Amit Sibal and Ankit Jain, along with a team from Sim & San, argued that the advertisement not only crossed the line of comparative marketing but also painted Derma Co as deceptive. They stated, “They’re alleging our product could cause pigmentation without credible proof. This isn’t just comparative advertising—this is defamation.”

HUL countered by submitting a two-page executive summary from a clinical test report, claiming Derma Co’s product failed to meet SPF 50 standards. However, Honasa pointed out the lack of a full report and asserted that their own independent lab tests prove SPF compliance.

Justice Amit Bansal, who presided over the hearing, questioned HUL’s intent and the adequacy of its evidence. Following discussions, HUL agreed to rework the ad and requested that Derma Co also take down its counter-campaign—something Honasa said it had already done.

Broader Industry Implications

This case marks a pivotal moment in the Indian skincare market, where digital-first brands like Derma Co are rapidly gaining ground, often disrupting legacy players like HUL. The court’s involvement underlines the need for fair competitive practices, especially as advertising wars escalate in the digital age.

Consumer trust, transparency, and brand ethics are becoming increasingly vital in shaping purchasing decisions, especially in sensitive categories like skincare. The episode also sets a precedent for how brands approach comparative advertising in India going forward.

The next hearing is scheduled for Monday, where the Court will review HUL’s compliance and any further submissions from either side.