Formula Swiss AG, a Swiss family-owned leader in organic CBD and wellness products, has initiated legal proceedings against the Office for Consumer Protection of the Canton of Zug (AVS) with the Swiss Federal Supreme Court in Lausanne. The lawsuit aims to resolve the legal ambiguity surrounding the classification and marketing of cannabidiol (CBD) products as cosmetics in Switzerland. This legal action underscores the company's commitment to regulatory compliance and its pursuit of justice against what it perceives as inconsistent enforcement of Swiss law.
For years, Formula Swiss has worked closely with the AVS, adhering to its guidelines to register CBD products as cosmetics. The company undertook significant measures, including commissioning external laboratories, consulting toxicologists, and compiling over 12,000 pages of documentation to ensure compliance. Despite these efforts, the AVS reversed its stance, accusing Formula Swiss of non-compliance, a claim the company disputes as unfounded and a breach of trust.
The controversy arises amidst a backdrop of global acceptance of CBD products as cosmetics, with Formula Swiss's products legally sold in over 60 countries and recognized by regulatory bodies in the UK, EU, Denmark, Sweden, and Norway. The European Industrial Hemp Association (EIHA) and IG Hanf Switzerland have publicly supported Formula Swiss, affirming the legality of CBD-based cosmetics and their inclusion in the European Commission's CosIng database.
Formula Swiss seeks CHF 5 million in damages for economic losses and reputational damage, citing discriminatory treatment compared to other companies in Zug selling similar products. The outcome of this case could set a significant legal precedent for Switzerland's CBD and hemp industries, impacting future regulatory practices and the classification of CBD products.
