No but if you drink water on a regular basis, it will prevent you from being deshydrated

Wow, and I didn't know companies made water either...

It's bloody good here, I'm learining every day.

Next I'll learn to spell.

They didn't. It was a test case brought be a couple of scientists to test and demonstrate the ludicrous nature of the proposed labelling system.

"German professors Dr. Andreas Hagn and Dr. Moritz Hagenmeyer who advise food manufacturers on promotional and advertising angles as it relates to product efficacy, made the request to the European Commission in what was essentially a test request to assess the legality of claims intended for more controversial products such as those that they aim to get labeled as “reducing the risk of certain diseases.” The bottled water request was submitted as stating that “regular consumption of significant amounts of water can reduce the risk of development of dehydration.”"

What's ludicrous about making sure companies can't claim their products do things they can't? The test case seems less about demonstrating how ludicrous whatever law this is, and more about whether it is effective and whether the EU will do anything about companies that falsely label products. The EU isn't making a labelling system, the bottling companies do the labelling, they're the ones who came up with the claim, and they were testing the limits of the law.