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Swiss CBD Company Challenges Zug Authorities in Supreme Court Over Cosmetics Classification

By Advos
Formula Swiss AG has filed a lawsuit against the Office for Consumer Protection in Zug at the Swiss Supreme Court, seeking legal clarity on the classification of CBD products as cosmetics. The company is confident of victory and is claiming CHF 5 million in damages for regulatory mistreatment.

TL;DR

Formula Swiss AG's lawsuit seeks to establish CBD products as cosmetics, potentially gaining a competitive edge in the Swiss market.

Formula Swiss diligently complied with AVS guidance, engaging in thorough testing, documentation, and compliance measures for their CBD products.

A positive legal ruling for Formula Swiss could set a precedent for fair treatment in the CBD industry, benefiting companies and consumers alike.

Formula Swiss's case sheds light on the complexities of regulatory oversight and industry support for CBD products in Switzerland and beyond.

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Swiss CBD Company Challenges Zug Authorities in Supreme Court Over Cosmetics Classification

Formula Swiss AG, a Swiss family-owned wellness products company, has escalated a regulatory dispute by filing a lawsuit with the Swiss Federal Supreme Court. The case challenges the Office for Consumer Protection of the Canton of Zug's stance on CBD cosmetics and seeks a definitive legal ruling on product classification.

The company alleges that despite years of collaborative, transparent engagement and following explicit guidance from authorities, the Zug office reversed its position and accused Formula Swiss of regulatory non-compliance. The lawsuit highlights inconsistent enforcement, noting that other local companies selling similar CBD products have not faced comparable scrutiny.

Formula Swiss has international precedent supporting its position. Its products are already registered as cosmetics in the United Kingdom, European Union, and over 60 countries. Multiple European regulatory bodies, including authorities in Denmark, Sweden, and Norway, have independently validated the safety and legal classification of their CBD cosmetic products.

Industry associations, including the European Industrial Hemp Association and IG Hanf Switzerland, have publicly supported Formula Swiss. They emphasize that cannabidiol is a permitted cosmetic ingredient listed in the European Commission's CosIng database, reinforcing the company's regulatory approach.

The lawsuit seeks CHF 5 million in damages for economic losses and reputational harm. While Formula Swiss voluntarily ceased selling the disputed products two years ago and has complied with all subsequent requests, the company views the legal action as necessary to establish a precedent for Switzerland's emerging CBD and hemp industries.

This case represents a critical test of regulatory interpretation and could significantly impact how CBD products are classified and marketed in Switzerland. The outcome may provide clarity for other companies operating in this evolving sector and establish important legal guidelines for future product development and compliance.

Curated from Newsworthy.ai

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