CDSCO Cancels Registration of FatX Over Misleading Product Claims

The Central Drugs Standard Control Organisation has cancelled the registration certificate of FatX. The action follows discrepancies found between the approved product label and marketing claims made on the company's official website.

The Central Drugs Standard Control Organisation (CDSCO) has officially cancelled the registration of FatX following discrepancies identified between its approved product label and the claims made by the company on its official website.

According to the regulatory order, the company was marketing the product as a treatment capable of dissolving fat cells and reducing their size. The regulator noted that these descriptions amount to drug claims and do not fall under the legal definition of cosmetics.

The CDSCO order highlighted clause (aaa) of Section 3 of the Drugs and Cosmetics Act, 1940. This section defines cosmetics as articles intended to be applied to the human body specifically for cleansing, beautifying, promoting attractiveness, or altering appearance. Furthermore, the regulator cited Rule 36 of the Cosmetics Rules, 2020, which strictly prohibits false or misleading claims by cosmetic products.

The regulatory authority had previously issued a show-cause notice to the firm on August 10, 2026, citing violations of the Drugs and Cosmetics Act and the Cosmetics Rules. The firm submitted its response on September 1, 2026, which the Licensing Authority evaluated and found to be inconclusive and unsatisfactory. During the proceedings, the company also requested the acceptance of a voluntary surrender of its registration certificate.

Exercising its powers under Rule 16 of the Cosmetics Rules, 2020, the Central Licensing Authority proceeded to cancel the registration certificate bearing number RC/COS-003300. The certificate, originally dated July 15, 2022, was valid until July 14, 2027, but has been revoked from the date of the issuance of the order.

"Regulatory compliance is non-negotiable for businesses operating in health, wellness, and consumer sectors. This action by the CDSCO highlights the critical importance of ensuring that online marketing claims strictly match approved product labels and statutory definitions. Startups and established companies alike must align their promotional messaging with their official regulatory approvals to avoid severe penalties, including the cancellation of business licenses." — Dr. Shishir Gupta, Founder & CEO, StartupLanes