A novel quantum Smoluchowski dynamics in an external, nonlinear potential has been derived recently. In its original form, this overdamped quantum dynamics is not compatible with the second law of thermodynamics if applied to periodic, but asymmetric ratchet potentials. An improved version of the quantum Smoluchowski equation with a modified diffusion function has been put forward in L. Machura et al. (Phys. Rev. E 70 (2004) 031107) and applied to study quantum Brownian motors in overdamped, arbitrarily shaped ratchet potentials. With this work we prove that the proposed diffusion function, which is assumed to depend (in the limit of strong friction) on the second-order derivative of the potential, is uniquely determined from the validity of the second law of thermodynamics in thermal, undriven equilibrium. Put differently, no approximation-induced quantum Maxwell demon is operating in thermal equilibrium. Furthermore, the leading quantum corrections correctly render the dissipative quantum equilibrium state, which distinctly differs from the corresponding Gibbs state that characterizes the weak (vanishing) coupling limit. r