European Court of Justice strictly protects dairy names

Ruling by the European Court of Justice

Selling soy milk or tofu butter? Not allowed, ruled the European Court of Justice on Wednesday. At least, not under those names. The European Union applies strict rules on names such as milk, cream, butter, cheese or yoghurt. These may only be used for products of animal origin. There are exceptions, however, such as peanut butter, cocoa butter and coconut milk. The range of products from the German company TofuTown was at the origin of the ruling. The company markets and distributes purely plant based products under names such as 'Soyatoo Tofubutter', 'Pflanzenkäse' and 'Veggie-Cheese'. The list of exceptions to the European ban does not include any such soy or tofu based products.

TofuTown

According to TofuTown, consumers now understand perfectly well that these are not genuine dairy products. Moreover, the plant based origin is always clearly stated in the product name, the company argued. The European judges in Luxembourg were not convinced, however. They emphasise that the rules are very clear, with exceptions explicitly listed in every language. Products based on soy or tofu do not appear on that list, but the product traditionally called 'crème de riz' in French, for example, does. The fact that the plant based origin appears in the name of the products marketed by TofuTown has no bearing on the ban either.
The judges explain that the ban does not conflict with the principle of proportionality. There remains a risk of consumer confusion, even where clarifying or descriptive additions are included. Nor can the defendant claim unequal treatment by arguing that vegetarian meat or fish substitutes are not subject to a similar ban. These are, after all, different products subject to different rules.

Previous rulings

A German association that combats unfair competition had brought the matter before the court of first instance in Trier. The German court referred the question to the European Court of Justice to clarify the EU legislation concerned. In Germany, the dispute must now be settled in accordance with the Court's decision. This ruling is also binding on other courts across the EU faced with a similar issue.
In 2015, the Brussels Court of Appeal reached a decision in a similar case that is consistent with the new ruling of the European Court of Justice. The trade federation of the Belgian dairy industry (BCZ), together with a number of its members, argued that Alpro could no longer use the term 'yoghurt' for its soy products. At first instance, the court had ruled that 'plant based variation on yoghurt' was clear enough for consumers. The Court of Appeal took a different view and ruled that only dairy products based on milk may carry the name 'yoghurt'.
Responding to the European Court's ruling, which confirms this once again, BCZ expressed great satisfaction. "The Court states that dairy names may only be used for genuine dairy products. There are clearly significant nutritional differences between milk on one hand and certain plant based drinks on the other. Many consumers are not aware, or not sufficiently aware, of this distinction, sometimes with significant consequences. It is therefore a good thing that a clear distinction is made through these names."
 

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