법무법인(유한) 율촌 | Yulchon LLC

Yulchon successfully represented liquor manufacturer Brewguru and obtained a favorable court decision that revoked a manufacturing suspension order imposed by the Seoul Regional Food and Drug Administration (the “Seoul Regional FDA”) for alleged violations of the Food Labeling and Advertising Act.

The dispute arose when Brewguru marketed its beer and highball products with the label “BEURRE,” a brand created by a famous celebrity and associated with a pending trademark application.  The Seoul Regional FDA deemed the use of “BEURRE” and the advertisement of the products as “Butter Beer” misleading, asserting that it constituted "false or exaggerated labeling," as butter was not an ingredient in the products.

Yulchon argued that the suspension order posed a risk of being cited as an aggravating factor in future administrative actions, giving Brewguru a legal interest in seeking its annulment. Yulchon further contended that the use of “BEURRE” was solely a brand name and trademark, distinct from any nickname or advertisement such as “Butter Beer.” Crucially, the firm demonstrated that the label itself did not mislead consumers regarding the product's ingredients, as the term “BEURRE” in isolation would not cause an average consumer to believe butter was used in the products.

The court found the disposition illegal based, accepting Yulchon’s arguments noting that (i) the advertising expression “Butter Beer” is distinguished from the act of attaching the “BEURRE” label to the products and there was no indication on the product that butter was used as an ingredient and (ii) considering the limited use and general understanding of the French language in Korea, it would not be reasonable to assume that consumers would interpret “BEURRE” as ‘butter’.

This case marks a pivotal precedent as the first to address the application of foreign-language labels under the Food Labeling and Advertising Act. It establishes critical legal standards for evaluating the legality of foreign-language labels, offering significant guidance for future cases involving similar issues.