Formula Swiss AG Challenges Swiss Authorities Over CBD Product Classification

Formula Swiss AG, a Swiss family-owned leader in organic CBD and wellness products, has taken legal action against the Office for Consumer Protection of the Canton of Zug (AVS) by filing a lawsuit 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 move comes after years of cooperation with the AVS, during which Formula Swiss adhered to the AVS's guidelines, investing in extensive documentation and compliance measures to ensure their products met regulatory standards.

The dispute arose when the AVS unexpectedly reversed its stance, accusing Formula Swiss of non-compliance, despite the company's efforts to follow the AVS's directives. This accusation has been met with criticism, as other companies in the region selling similar CBD products have not faced the same level of scrutiny. Formula Swiss's products are legally recognized as cosmetics in over 60 countries, including the United Kingdom and the European Union, and have been validated by regulatory bodies in Denmark, Sweden, and Norway for their safety and compliance with EU regulations.

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. These endorsements highlight the broader acceptance of CBD products in the cosmetics industry across Europe. Formula Swiss is seeking CHF 5 million in damages for the economic and reputational harm caused by the AVS's actions, with the hope that a favorable ruling will set a precedent for the Swiss CBD and hemp industries, ensuring fair treatment and legal clarity for all stakeholders involved.