Formula Swiss AG Sues Zug Authorities in Swiss Supreme Court Over CBD Cosmetics – Seeks CHF 5 Million in Damages

Formula Swiss AG, a Swiss family-owned pioneer in organic CBD and wellness products, has filed a lawsuit against the Office for Consumer Protection of the Canton of Zug (AVS) with the Swiss Federal Supreme Court in Lausanne. The case seeks a definitive legal ruling on whether cannabidiol (CBD) products can be lawfully classified and marketed as cosmetics in Switzerland.

Formula Swiss has cooperated extensively with the AVS for years, acting in full transparency and following their explicit guidance to register its CBD products as cosmetics. Under the AVS’s own direction and oversight, the company commissioned external laboratories, engaged qualified toxicologists, revised packaging and labeling, and developed over 12,000 pages of documentation to ensure regulatory compliance. These actions were taken in good faith—and with full documentation of AVS involvement.

Despite this close collaboration, the AVS reversed its position and accused Formula Swiss of regulatory non-compliance. These claims are not only unfounded but represent a serious breach of trust and a grossly unequal application of Swiss law. Other companies in Zug selling nearly identical CBD products have faced no such scrutiny or sanctions.

Global Compliance, Local Injustice

Formula Swiss products are registered as cosmetics in the United Kingdom and the European Union and are legally sold in over 60 countries. Regulatory bodies across Europe—including Denmark, Sweden, and Norway—have independently reviewed and confirmed the safety and legal classification of these products as cosmetics. A Danish Food Authority inspection report specifically validated the company’s marketing and labeling practices, confirming full compliance with EU regulations.

Backed by the Industry’s Leading Voices

Leading industry associations have also issued formal statements of support. The European Industrial Hemp Association (EIHA) and IG Hanf Switzerland, both of which count Formula Swiss as a long-standing and active member, strongly back the company’s position. These organizations confirm that CBD-based cosmetics are not only legal, but also widely sold throughout Europe and Switzerland.

Both associations have emphasized that cannabidiol (CBD), whether in isolate or extract form, is recognized as a permitted cosmetic ingredient and is officially listed in the European Commission’s CosIng database. Their endorsements underscore the regulatory validity of Formula Swiss’s product classification and highlight the growing international consensus around CBD cosmetics.

Seeking Justice and Compensation

Formula Swiss voluntarily ceased sales of the disputed products more than two years ago and has since fully complied with every request made by the AVS. However, the company now seeks CHF 5 million in damages for unjustified enforcement actions, economic losses, and reputational harm caused by the inconsistent and discriminatory behavior of the Zug authorities.

With strong legal documentation, third-party validations, and industry-wide backing, the company is confident of a positive outcome in this landmark case. A victory would not only deliver long-overdue justice but also establish a vital legal precedent for Switzerland’s growing CBD and hemp industries.