Prohibition to Market Skin Care Products as Medicines

On 12 February 2008, the Swedish Market Court (the “Court”) gave its ruling in a case regarding marketing by the Nordic manufacturer of skin care products and pharmaceuticals, ACO, of a 2005 collection of skin care products such as soft soap, shower gel, body lotion and shampoo, called the “medical collection”. In addition to the name of the collection, ACO also used the designation “Medical” on the products. Further, ACO had in some magazines used the wordings “Diagnosis” and “Ordination” in connection with the designation “Medical”.
The Court noted that an average customer would either recognize the word “Medical” or at least associate said word as an expression for something related to medicine. The Court further stated that the designation “Medical” implies that products are pharmaceuticals or possess pharmaceutical effects. However, it was clear that the skin care products in this case were not pharmaceuticals and did not possess such effects. The Court found it inappropriate and misleading to market the skin care products under the designation “Medical”.

Also, given that the wordings diagnosis and ordination were used in connection with the designation “Medical” and since the wordings are commonly used in medical matters, the Court was further of the opinion that they expressed that the skin care products would possess pharmaceutical effects.

On the above grounds, the Court prohibited ACO to use the designation “Medical”, or other designations that may imply that the products are pharmaceuticals or possess such effects; as well as the wordings “Diagnosis” and “Ordination” in connection with the designation “Medical” when marketing their skin care products. The prohibition was enforced by a default fine of SEK 750 000.

Roschier, Attorneys Ltd. - Sweden


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