CorpConnect Corporate Law News January 2026

January 28, 2026
corp-connect-newsletter january-edition-2026

Is Your “Herbal Tea” Legally “Tea”? Fssai Issues Clarification

FSSAI Clarification

On December 24, 2025, the Food Safety and Standards Authority of India (FSSAI) issued a regulatory advisory (RCD-02004/7/2025) directing food business operators, beverage manufacturers, brand owners, advertisers, and e-commerce platforms to desist from using the term “tea” for beverages that are not derived from the Camellia sinensis plant. This advisory underscores a critical aspect of food labelling compliance, specifically targeting misbranding and misleading descriptions in the fast-expanding wellness beverage market. It has broader implications for consumer protection, regulatory enforcement, and legal risk in India’s food industry.

Shehnaz Gill Secures Hc Relief in Unfair Contract Case

Contract case

The entertainment industry is seen as a world of glamour, fame and opportunity. It is considered as a dream destination for countless aspiring artists. Everyone wants to be a part of it, hoping to make their mark and build a successful career. However, behind the glittering façade lies a hard reality: breaking into the industry is not only competitive but also fought with legal and contractual hurdles.

Many newcomers, eager for a breakthrough, sign agreements without fully understanding their implications. These contracts often contain restrictive clauses, such as exclusivity and long-term obligations, which severely limit creative freedom and earning potential. The imbalance of bargaining power between established labels and emerging talent makes it even harder for artists to assert their rights.

Smartphone Companies Forced to Disclose Source Code? Government Issues Clarification

Smartphone Companies forced to disclose Source Code

On January 12, 2026, Press Information Bureau (hereinafter referred to as ‘PIB’) posted on ‘X’ denying any claims and reports stating that the Indian Government has proposed to force smartphone makers to give source code of their respective operating systems. PIB clarified that, as a regular and routine consultation, the Ministry of Electronics and Information Technology (hereinafter referred to as ‘MeitY’) has started the process of stakeholders’ consultations with the industry to devise an appropriate regulatory framework. However, no final regulations have been frame yet and any future framework will be formulated only after due consultations with the relevant industry stakeholders.

Centre Brings Ai-Based Cancer Detection Tools Under Regulatory Oversight

Centre Brings AI-Based Cancer

Recently, the Central Drugs Standard Control Organisation (CDSCO) announced that software using Artificial Intelligence (AI) tools for cancer detection such as application analyzing CT scans, X-rays and other radiological data will require mandatory regulatory approval prior to  market deployment. Currently, the leading sectors driving AI adoption include industrial and automotive, consumer goods and retail, banking, financial services and insurance, and healthcare. Collectively, these sectors account for approximately 60 percent of the total value generated by AI.

What includes as a Medical Device?

Under Indian regulatory framework, a Medical Devices is any instrument, apparatus, appliance, implant, material or other software (including accessories) intended for use in humans or animals to diagnose, prevent, monitor, support, treat or alleviate diseases, injuries or disabilities; support or modify anatomy or physiological processes; sustain life; disinfect medical devices; or control conception. It does not achieve its primary intended action through pharmacological, immunological or metabolic means though it may assist its function through such means.

Concerns Mount Around Al Guardrails as Grok Goes on an Undressing Spree

AI Guardrails as Grok

On January 2, 2026, the Cyber Laws Division of the Ministry of Electronics and Information Technology (hereinafter referred to as ‘MeitY’) issued a notice to the Chief Compliance Officer of India operations of X Corp. This notice was issued in response to users using Grok to publicly convert real images posted by users into synthetically modified images portraying women and children in sexually explicit manner. The notice directs X Corp to take necessary measures to prevent such non-consensual generation of such indecent and obscene images.

Openai Ceo Sam Altman Flags Ethical and Security Concerns Around Al Systems

Ethical and Security Concerns around AI Systems

Recently, the OpenAI CEO, Sam Altman posted on X seeking recruitment applications for the position of ‘Head of Preparedness’. In the post he acknowledged the rising ethical and security concerns around AI systems. This statement from the CEO of a leading AI Company like OpenAI sparked a conversation for an urgent need to frame regulations to address and mitigate AI related harms.

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