Consumers are increasingly considering ecological and social criteria in their purchasing decisions. It is therefore becoming more important for companies to position their products and services as environmentally friendly. Consequently, terms such as "climate-neutral," "ecological," or "sustainable" are appearing more frequently in advertising.
However, it is often difficult for consumers to verify whether these claims are actually true. Environmental advertising claims can therefore have significant potential to mislead.
Directive (EU) 2024/825 ("Empowering Consumers for the Green Transition," or EmpCo Directive) is intended to counteract such business practices. The directive aims in particular to empower consumers to make more sustainable purchasing decisions through better information while simultaneously protecting them more effectively against unfair environmental advertising claims. In Germany, the EmpCo Directive was implemented through the Third Act to Amend the Act Against Unfair Competition (UWG).
Key elements of the amendment act include:
For companies, this means that environmental and sustainability claims must be vetted even more carefully in the future and supported by robust evidence. Existing and future advertising campaigns, climate pledges, and internal processes should be reviewed immediately, and any necessary certificates should be obtained. In the following article, we highlight which legal changes must be observed in detail and what concrete measures companies should take.
I. Key New Regulations in the UWG
The amendment to the UWG not only legally defined terms such as "environmental claim," "sustainability label," "certification system," and "recognized excellent environmental performance," but also expanded the catalog of prohibited and misleading business practices to include new environmental-related bans.
Business practices listed in the so-called "Black List" in the annex to Section 3 (3) of the UWG are per se prohibited when directed at consumers. This catalog of business practices classified as misleading has now been expanded to include making unsubstantiated "general" environmental claims, providing false information about the scope of an environmental claim, and making claims about environmental impacts related to the offsetting of greenhouse gas emissions.
A "general" environmental claim is, for example, a blanket assertion in advertising, on product packaging, or in contract documents that one's own products or services are "environmentally friendly" or "green." Such claims are prohibited unless they are demonstrably based on a "recognized excellent environmental performance" of the company. The required proof must be derived directly from a recognized sustainability label, which must be displayed on the same medium as the environmental claim. Sustainability labels must either be established by a government authority of an EU member state or be based on a certification system. Such labels include, for example, the Blue Angel awarded by the German government or the European Union's Ecolabel.
Furthermore, environmental claims are prohibited as a business practice if they are made regarding an entire product or the entire business activity of an entrepreneur, even though the claim only applies to a specific aspect. For example, if only a product's packaging is recycled, it must not create the impression that the entire product is made from recycled material. Or, if a company is described as environmentally friendly because the owner has converted part of the vehicle fleet to electric drive, even though the majority of transport is still carried out by diesel-powered trucks. Whether the impression is created that the claim applies to the entirety of the product or business operation must be determined by interpreting the environmental claim according to the understanding of an average consumer.
The ban on claims based on the offsetting of greenhouse gas emissions that create the impression that a product has neutral, lower, or even positive environmental impacts regarding its greenhouse gas emissions is of particular importance. Offsetting emissions—such as by planting trees or purchasing emission certificates—does not fundamentally change the fact that harmful environmental impacts can still occur during the production of a product. Therefore, a product may not be advertised with terms like "climate-neutral," "CO₂-positive," or "climate-friendly" solely on the basis of such offsetting measures. Such claims were already questionable before the amendments to the UWG came into force; the new regulation has now explicitly clarified the ban.
However, claims stating that the offsetting of greenhouse gas emissions is achieved through measures elsewhere in a product's value chain remain permissible. The purchase of CO₂ certificates may therefore continue to be advertised, provided that it does not simultaneously create the false impression that the product itself is "climate-neutral." In this context, the understanding of an average, reasonably informed and observant consumer is also decisive. Likewise, legally required properties or requirements may not be advertised as special features of the product.
In this process, the sanctions for violating Section 3 (3) of the UWG in conjunction with the Black List have also been tightened in cases of widespread infringement under Section 5c of the UWG.
In addition to the Black List in Section 3 of the UWG, the catalog of misleading business practices in Section 5 of the UWG has been supplemented, which is also explicitly intended to serve the protection of competitors and other market participants.
Under Section 5(2)(1) of the German Act Against Unfair Competition (UWG), a commercial practice is considered misleading if it contains false information or other information capable of deceiving consumers regarding the essential characteristics of a product or service. Following the amendment to the UWG, this now also includes environmental or social characteristics, as well as circularity aspects such as durability, reparability, or recyclability. This list is not exhaustive. Furthermore, it only covers characteristics that are likely to actually influence the recipient's commercial decision.
In addition, Section 5(3)(4) of the UWG establishes new boundaries for future-oriented environmental claims. Commercial practices are considered misleading if they make an environmental claim to consumers regarding future environmental performance without clear, objective, publicly accessible, and verifiable commitments from the company. These commitments must also be set out in a detailed and realistic implementation plan that meets the further requirements of Section 5(3)(4)(a) and (b) of the UWG.
As of September 27, 2026, the new requirements generally apply to products and advertising materials already on the market. However, in its FAQs on the interpretation of the EmpCO Directive, the European Commission notes that the principle of proportionality is of particular importance when enforcing the new rules for existing products. When conducting an assessment, the specific circumstances of each individual case, the compliance measures already taken, and the impact of any subsequent adjustments must be taken into account.
Against this backdrop, shortly before the new regulations came into force on September 24, 2026, the Bundestag passed the introduction of Section 15b of the UWG as a special provision for long-lasting products already placed on the market. This provision is intended to ensure, until September 2028, that the destruction of goods already in circulation is only considered in cases of serious violations and in compliance with the principle of proportionality. This also addresses the concern that the premature destruction of goods can itself cause significant environmental damage.
Despite the relief provided for existing products in certain individual cases, companies should—if they have not already done so—promptly review current and future environmental and sustainability-related claims, as well as product labeling, packaging, websites, and other advertising materials. Claims that do not meet the new requirements should be corrected, removed, or covered up whenever possible.
The legally compliant implementation of these new and often complex requirements demands careful legal review and a forward-looking compliance strategy. The line between permissible green marketing and misleading practices subject to legal action is narrower than ever.
Our team is happy to assist you in reviewing and ensuring the legal compliance of your product design, as well as your current and future advertising campaigns.