Delhi HC Barred Ghadi From Disparaging Surf Excel: Dag Ache Hai Par Defamation Nahi

Introduction

Hindustan Unilever Ltd. (HUL) filed a suit along with an interim Application for injunction before the Hon'ble Delhi High Court against RSPL Ltd., alleging that the Defendant's advertisements disparage and defame its detergent brand, 'Surf Excel'.

In a significant Order, the Hon'ble Court held in favor of the Plaintiff, declaring the impugned advertisements by the Defendant as derogatory and defamatory of the Plaintiff's products, after applying the established "Principles of disparaging advertisement".(read more at:https://ssrana.in/articles/puffery-vs-disparagement-the-bombay-high-court-reiterates-key-principles-of-comparative-advertising/ )

Background of the Dispute

The present suit was filed by HUL seeking injunctive relief against the alleged acts of disparagement, defamation and infringement concerning its popular detergent brand 'Surf Excel'. The Plaintiff, one of the market leaders in the category of detergent, claims an annual turnover of approximately Rs. 11,000 Crore from its 'Surf' branded products. The Plaintiff highlighted that 'Surf Excel' has acquired a distinctive reputation and goodwill in the Indian market.
The Defendant, RSPL Ltd., released a series of four television and digital marketing commercials in first week of June 2025, which HUL alleged, were designed to target and belittle its 'Surf Excel' product, thereby constituting disparagement and infringement of its registered trademarks.
The Plaintiff submitted that the impugned advertisements mimic and allude to its popular advertising campaign 'Daag Achhe Hain' and its prominent blue-colored packaging, both of which are widely associated with 'Surf Excel'.

Alleged Disparaging References:

S. No	Plaintiff's Product Reference	Comments in Defendant's Advertisement
1	Plaintiff prominently uses 'Blue' colour packaging for its Surf Excel products.	Use of light blue and dark blue packaging in the advertisement.
2	Plaintiff's product branded as 'Surf Excel'	Use of the term 'XL Blue'
3	Plaintiff's advertisement campaign under the slogan'Daag Ache Hai'	Use of the expressions like: 1.'Iske Jhaag ache hai, daam ache hai' (product's price is high) 2. 'Na na, ye dhoka hai' (this is a fraud) 3. 'Aapka kare badi badi baatein, dho nhi patey' (your product makes big claims but cannot wash clothes)

Contentions of Plaintiff

The Plaintiff argued that while it sells 'Surf Excel' in various packaging formats, the blue-colored packaging is prominent and visually associated with its product in the minds of consumers.
The Plaintiff claimed that the Defendant's commercials were intended to ridicule and undermine its product by employing similar visual cues and making statements that mock its performance and brand messaging.
The first advertisement was released on June 3, 2025 and the others on June 7, 2025. A cease-and-desist notice was sent by the Plaintiff to the Defendant on June 7, 2025, against which the Defendant refused to comply.

Contentions of Defendant

The Defendant contended that Plaintiff's registration of trademark bearing registration no.1065243 in class 03 itself is a conditional one. It includes a disclaimer that grants no exclusive rights over the word 'Excel', implying that the Plaintiff cannot claim a monopoly over the term.
The blue-colored product packaging is common in washing powders, with brands like Fena, Ariel, Henko, Wheel etc. also using blue colour scheme in product packaging.
The Defendant also pointed that the words 'XL Blue' and 'XL' are registered trademarks of a third party since 2018.

Observations of the Court

After examining the video advertisements in question, and considering the various precedents on the aspect of disparagement, the Court summaries the legal position on this question as under:

A person may advertise its products to promote his own goods so long as same is not deliberately tarnishing or defaming the competitor's products.
Derogatory remarks against any competitor's products are impermissible.
While puffery is allowed, defamation and tarnishing a competitor's product is not.

The Hon'ble Court observed that, when viewed from the perspective of an average consumer, the impugned advertisement clearly made reference to Plaintiff's 'Surf Excel' product. Applying the aforesaid principles to the present case, the Hon'ble Court was prima facie inclined to direct the Defendant to remove the derogatory innuendoes from its advertisement, as an ad-interim measure.

Hence, the Court directed the following statements to be removed from the advertisements by June 24, 2025 and only then would be allowed to telecast these advertisements:

'Aapka kare badi badi baatein par dho nahi paate' [Translation: 'Your product makes tall claims but cannot wash']
'Iske jhaag acche hai, daam acche hai' [Translation: 'Its foam is good, price is good'- Expressions which clearly refers to the Plaintiff's product prima facie and appear to be derived from the 'Daag ache hai' campaign of the Plaintiff]
'Na Na, yeh dhoka hai' [Translation: 'No, No, this is a fraud (product)']

Author's Note

In the present case, even if not mentioning the Plaintiff's brand by name, Defendant's advertisement was found to be clearly suggestive and derogatory, thereby crossing the threshold of permissible comparative advertising. This case emphasized on fine line between legitimate comparative advertising and unlawful disparagement. The Hon'ble Delhi High Court's order reinforces the judicial commitment to preserving commercial ethics and protecting brand reputation in an intensely competitive market.

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