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In 1997, a subsidiary of Danone, a.s., the world´s largest producer of diary products, introduced the "BIO - bifidus aktiv" yogurt on the Czech market. In the Czech Republic, as well as in other EU countries, the BIO label is intended for the marking of the products on bio-agriculture. By using the BIO mark on its yogurts, Danone took advantage of the reputation of products that come from the bio-agriculture system. In doing so, it obviously injured the producers of bio foods, since thanks its abuse of the BIO label, they lost customers who, in the belief that such yogurts have the qualities one attaches to bio foods, used their buying potential to buy products that in reality had nothing at all to do with bio-agriculture. The act in question deceived consumers.


To promote its new product, Danone, a.s. launched a massive advertisement campaign. Soon other competitors on the diary market started using the "BIO" label on their product, too. As a consequence, the "BIO" label has been degraded. It is obvious that Danone, a.s., has behaved in a way which has not promoted bio agriculture, nor enhanced the state of the environment in the Czech Republic. Therefore ELS has called upon this company to stop using the "BIO" label for its new products. Danone, a.s., has not complied with this demand which has forced ELS to turn to the court.