In brief
The European Union has adopted Directive (EU) 2024/825, the so-called Empowering Consumers for the Green Transition Directive (“EmpCo Directive”), introducing significant changes to EU consumer protection law aimed at combating greenwashing and enhancing the reliability of environmental claims. By amending the Unfair Commercial Practices Directive (2005/29/EC), the new rules impose stricter requirements on the use of sustainability labels and environmental marketing claims and are expected to have far-reaching implications for businesses operating in consumer markets. Companies should review their marketing materials, product labelling, sustainability communications and brand portfolios to ensure compliance with the new framework, which will apply from 27 September 2026 and may give rise to increased enforcement and litigation risks under both unfair competition and trademark law.
In more detail
The European Union has taken a significant step in its efforts to combat greenwashing and strengthen consumer protection. Directive (EU) 2024/825, commonly referred to as the EmpCo Directive, introduces new rules governing environmental claims and sustainability labels in business-to-consumer communications.
By amending the Unfair Commercial Practices Directive (2005/29/EC) (“UCP Directive”), the legislation seeks to ensure that consumers can make informed purchasing decisions based on accurate and substantiated environmental information. The new requirements will be implemented into national law across the EU and are expected to have a significant impact on companies' marketing, branding and product labelling strategies.
Businesses that use sustainability-related messaging should therefore assess their current practices and prepare for heightened regulatory scrutiny.
New restrictions on environmental marketing claims
The EmpCo Directive introduces a number of practices that will be deemed unfair and therefore prohibited under EU consumer protection law.
Most notably, businesses will no longer be permitted to use sustainability labels that are not based on an established certification scheme or issued by a public authority. The aim is to address the growing number of private environmental labels that may create confusion for consumers.
The Directive also targets generic environmental claims, such as "environmentally friendly", "green" or "sustainable", unless such claims can be substantiated by recognised and verifiable environmental performance. Broad statements that lack adequate evidentiary support are likely to face increased scrutiny.
In addition, environmental claims relating to an entire product will be prohibited where the claimed benefit concerns only a specific aspect or characteristic of that product. The new rules therefore require businesses to ensure that the scope of any environmental representation accurately reflects the underlying evidence.
The average consumer standard remains central
As under the existing framework of EU and national unfair competition law, the assessment of whether a commercial practice is misleading continues to be based on the perspective of the reasonably well-informed, observant and circumspect average consumer.
Against the backdrop of increasing consumer awareness of sustainability issues, businesses should expect higher expectations regarding the transparency and substantiation of environmental claims. Claims that may previously have been regarded as acceptable marketing language could be challenged if consumers are likely to interpret them more broadly than intended.
Implications beyond advertising: trademark and brand considerations
The implications of the EmpCo Directive extend beyond advertising campaigns and product packaging. Companies should also consider the impact on their brand portfolios and trademark strategies.
Trademark protection does not shield businesses from compliance with unfair competition law. Where a trademark, logo or other brand identifier conveys a sustainability-related message, its use may be challenged if the underlying environmental claim is vague, exaggerated or insufficiently substantiated.
This is particularly relevant for brands that incorporate terms or imagery suggesting environmental performance or sustainability benefits. In addition to creating potential enforcement risks, unsupported environmental associations may undermine consumer trust and weaken the distinctiveness and credibility of the brand itself.
Key steps for businesses
With the full application of the new rules approaching, companies should consider taking the following steps:
- Review environmental claims across all marketing channels, product packaging and customer communications to ensure that claims are specific, accurate and supported by evidence.
- Assess sustainability labels and certifications to confirm that they are based on recognised certification schemes or issued by competent public authorities.
- Strengthen substantiation procedures by maintaining robust documentation supporting any environmental representations, including scientific evidence, certifications and sustainability assessments.
- Evaluate trademark portfolios and branding strategies to identify signs or brand elements that may be perceived as environmental claims and assess whether additional substantiation may be required.
- Prepare for increased enforcement activity, including challenges by competitors, consumer organisations and regulatory authorities.
Outlook
While certain provisions of the EmpCo Directive have already entered into force, the Directive will apply in its entirety from 27 September 2026.
The new framework reflects a broader regulatory trend towards greater accountability in sustainability-related communications. Businesses operating in the EU should use the remaining transition period to review marketing practices, product labelling and brand strategies to ensure compliance with the evolving legal landscape.
Download the German version of European Union: Final Call — The EU EmpCo Directive.