Decisions of the European Court of Justice – Case Nos. C-438/23 and C-240/23
Can a steak, schnitzel, or sausage also be vegetarian or vegan, and may a plant-based product be referred to as such at all? This question occupied the European Court of Justice. In its ruling on October 4, 2024 (Case No: C-438/23), the ECJ clarified that purely plant-based foods may bear the designation of animal products, provided there is no legally required designation for these products. A blanket national ban on labeling vegetarian or vegan products as steak, for example, is not permissible, according to the judges in Luxembourg.
The labeling of foods is a frequent point of contention in competition law. In principle, they must not be advertised in such a way that the consumer could be misled. A vegan steak can be a contradiction, but whether the consumer is misled by it is another question, according to the law firm MTR Legal Rechtsanwälte, which advises, among other things, on competition law.
French ban ends up before the ECJ
The starting point for the proceedings before the ECJ was a French decree that prohibited the use of terms like “sausage”, “steak”, or “schnitzel” for plant-based products. The ban applied even if the products were clearly labeled as “vegan” or “vegetarian” on the packaging.
Several organizations and companies objected to this decree. They felt restricted in their entrepreneurial freedom and competitive opportunities by the ban. They therefore demanded that the decree be declared void. The French State Council then referred the matter to the ECJ. The central question was whether it is compatible with EU law – in particular with Regulation (EU) No. 1169/2011 – for a member state to reserve the use of certain terms exclusively for products of animal origin, even if the designation is supplemented by a clarifying indication such as “plant-based” or “vegan”.
General prohibition inadmissible
The ECJ decided that a general, blanket prohibition of the use of meat terms for plant-based products violates Union law, provided that no specific, Union-legally prescribed designations exist. A national regulation that categorically reserves certain terms exclusively for meat products of animal origin is not permissible. Furthermore, it can be presumed that the information provided according to the regulation is sufficient to ensure consumer protection, according to the judges in Luxembourg.
If an EU member state has not introduced a legally prescribed designation, the manufacturer of vegan or vegetarian foods must not be prevented by a general prohibition from using common designations, the ECJ further explained.
Use of the EU organic logo
In another case, the ECJ also decided, with a judgment on October 4, 2024, regarding the use of the EU organic logo (Case No: C-240/23). The proceedings concerned a beverage that, in addition to organic ingredients, also contained added vitamins and minerals. The German authorities prohibited the manufacturer from using the EU organic logo on this product because such additives are only allowed under the EU Regulation 2018/848 if legally prescribed. However, that was not the case here.
The manufacturer opposed this, since, in its view, there was unequal treatment compared to a comparable product imported from the USA. The background is that the USA is considered a third country whose production and control regulations are regarded as equivalent to those of the EU. This means that products that meet the USA’s regulations for organic products may also be marketed within the EU.
Anti-competitive disadvantage
The ECJ largely agreed with the German manufacturer and identified an anti-competitive disadvantage. It clarified that the EU organic logo may only be used on imported food if it fully complies with the EU’s production regulations for certification with the EU organic logo. Mere recognition of third-country standards as equivalent is not sufficient. Otherwise, there is a risk of misleading consumers and distorting competition in the internal market.
However, the ECJ limited this to the use of the EU organic logo. If a third country has its own certification for organic products, this can also be used in the EU, provided it does not create the impression that the product complies with EU regulations.
The ECJ’s rulings show that companies should continue to carefully design their product labels and transparently inform about ingredients and manufacturing methods.
MTR Legal Rechtsanwälte advises on industrial property protection and in competition law.
