New practices with regard to environmental claims in marketing

sustainability

Moll Wendén have been successful, on behalf of their clients, in a Market Court hearing. The Market Court approved Moll Wendén client’s main claim for an injunction which prohibited the other party from using the contested marketing material, on pain of a fine of 1 MSEK.

The counterparty must, by 26 September 2010, have removed the term “locally” on all product packaging relevant to the case.

The ruling is a precedent in terms of how Swedish food operators may use the term “locally produced”. The Market Court confirmed that the expression “locally” is perceived as locally produced. As a consequence, the court found that the term is unreliable in the nationwide promotion of a production that only occurs in one location in Sweden.

Where warranted, the Market Court also stressed that it was not prevented from examining claims that concerned marketing which had occurred over a long period, neither did the fact that a trader had chosen to shape their marketing in the form of questions mean that they couldn’t be tested.

As a result, it also prohibited two marketing claims formulated as rhetorical questions and used since 1994.

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