The actual legal basis: not the Green Claims Directive, but the EmpCo and the amendment to the Unfair Commercial Practices Act

The Green Claims Directive, originally proposed by the European Commission as a comprehensive set of rules for substantiating environmental claims, has been shelved. Instead, Directive (EU) 2024/825, officially titled ‘Empowering Consumers for the Green Transition’, or EmpCo for short, has been in force since February 2024. It amends the general Directive on unfair commercial practices (UCPD 2005/29/EC) and adds six new categories of prohibited practices to the EU’s ‘blacklist’.

Germany has transposed the EmpCo Directive within the prescribed timeframe: the Act amending the Unfair Commercial Practices Act (UWG) of 19 February 2026 (Federal Law Gazette 2026 I No. 43) has been in force since June 2026. The key date is 27 September 2026: from then on, the new rules will apply to businesses across the EU, and the supervisory authorities will be authorised to impose fines.

Timeline: Key dates at a glance

By this date, all environmental claims in commercial communications must comply with the new requirements. Anyone still using terms such as ‘climate-neutral’ or ‘environmentally friendly’ today has only a few months left to make the switch.

An overview of the six new categories of offences

The EmpCo Directive adds the following new provisions to Annex I of the UCPD and thus to the Annex to Section 3(3) of the UWG:

No. 4a, General environmental claims without recognised outstanding environmental performance

Terms such as ‘environmentally friendly’, ‘climate-friendly’, ‘green’ or ‘bio-based’ are now only permitted if the product can demonstrate recognised outstanding environmental performance, for example, through the EU Ecolabel, the Blue Angel or energy efficiency class A in accordance with ISO 14024 Type I. Self-created ‘eco-labels’ without external accreditation are not permitted. Important: If the specification of the claim is made ‘on the same medium in a prominent manner’, the claim is not considered to be general.

No. 4b, Misleading scope of environmental claims

Advertising a product as ‘made from recycled material’ when only the packaging is made from recycled material is misleading. The claim must cover the entire scope, or be clearly limited to the specific aspect.

No. 4c, CO₂ offsetting (climate-neutral claims)

The most significant new provision: statements such as ‘climate-neutral’, ‘certified CO₂-neutral’ or ‘climate-offset’ are not permitted if they are based on the offsetting of greenhouse gas emissions outside the product value chain. Only life-cycle-based in-house reductions remain permitted. Investments in climate protection projects may still be communicated, but not as ‘neutrality’.

No. 2a, Prohibited sustainability labels

Sustainability labels are now only permitted if they are based on an ISO 17065-compliant certification system or have been awarded by a government body. Self-certified labels are prohibited.

No. 10a, Statutory standards as a special case

Product characteristics required by law must not be advertised as a special feature. Example: Advertising a product as ‘free from [substance]’ when that substance is already prohibited by law.

No. 23d a–g, Early obsolescence

Seven new prohibitions on planned obsolescence, including: concealing drawbacks caused by software updates, inaccurate claims regarding service life, falsely claiming a product is repairable, and the premature replacement of consumables.

Practical examples: What is changing

Example 1, ‘Climate-neutral’ on product packaging

Previously: “Climate-neutral through offsetting” with a reference to a reforestation project in Peru.

After: Not permitted under No. 4c. Alternative wording: “We are investing in reforestation project X in Peru, details at [link]. The remaining emissions from the production chain amount to 1.2 kg CO₂e per unit (life cycle assessment 2025).“

Example 2, “Environmentally friendly packaging”

Before: “Our packaging is environmentally friendly.”

After: Not permitted under No. 4a (general environmental claim). Alternative: “Our packaging consists of 95% post-consumer recycled material and is certified by the Blue Angel (registration number DE-XXX).”

Example 3, Proprietary ‘Green Pro’ label

Before: “Green Pro” logo designed in-house and used on the product website.

After: Not permitted under No. 2a. Alternative: Initiate external certification (such as the EU Ecolabel, FSC or OEKO-TEX) or label the seal as an in-house label with transparent, publicly available criteria.

Follow-up question: Is your website affected?

The three practical examples illustrate exactly what is changing. Check now whether your own communications meet the new requirements, and what risks are already present.

Moving on to the possible sanctions:

Fines: Up to 4 per cent of EU-wide annual turnover

The EmpCo Directive obliges Member States to provide for ‘effective, proportionate and dissuasive sanctions’ (Art. 13). The maximum fine under the German Unfair Competition Act (UWG) is:

• Up to 4 per cent of EU-wide annual turnover for companies with an annual turnover of more than 1.25 million euros (Section 19(3) UWG, as amended)
• Up to 50,000 euros for smaller undertakings (Section 19(2) of the UWG, as amended)
• If there is no basis for estimation, the maximum amount is 2 million euros

Other EU Member States are even stricter: France provides for up to 10 per cent of global annual turnover, whilst the Netherlands provides for up to 900,000 euros or 1 per cent of turnover.

Who is affected?

The new regulations apply to all businesses that make environmental claims in their commercial dealings with consumers (B2C). There is no distinction between large corporations and SMEs. The following are particularly affected:

• FMCG / consumer goods: packaging claims, product labelling
• Fashion / textiles: ‘sustainable’ collections, origin of materials
• Energy / Mobility: climate neutrality pledges, green electricity advertising
• Financial services: ESG fund marketing, ‘green’ investment
• E-commerce: product descriptions, filter labels

B2B communication is also partly covered by the new regulations, for example, where it is visible to end consumers or affects competitors (Section 3 of the Unfair Commercial Practices Act (UWG) covers misleading commercial practices across all sectors).

Competent authorities in Germany

Enforcement takes place at two levels:

• Central authority: The Central Office for Combating Unfair Competition in Frankfurt am Main is the point of contact for cross-state cases and particularly serious violations.
• State authorities: Consumer protection centres and Higher Regional Courts handle local cases.
• Class actions: Competition organisations and consumer advice centres may bring legal proceedings, without there needing to be any specific evidence of consumer harm.

Checklist: Preparing for 27 September 2026

1. Stock-take: Record all environmental claims in marketing, product descriptions, packaging and advertising, including alt text, seals and imagery.
2. Claim categorisation: Check each claim against the new ‘blacklist’ criteria: Is it a general environmental claim (4a)? Does it contain a reference to CO₂ offsetting (4c)? Is it a proprietary label (2a)?
3. Specification: Replace general claims with specific, verifiable statements. Instead of ‘environmentally friendly’: ‘95% recycled PET, GRS-certified.’
4. Review CO₂ claims: Verify or remove climate neutrality claims based on the life cycle, not on offsetting —.
5. Seal certification: Replace in-house sustainability seals with accredited certification schemes, or at the very least initiate the certification process.
6. Audit visual language: Use natural landscapes and green icons only where there is concrete substance behind them. Otherwise: replace them.
7. Establish a process: Ongoing monitoring of all new communication content prior to publication, not just a one-off exercise.
8. Documentation: Store evidence for every claim centrally and keep it up to date (30-day deadline for providing information to authorities).

Distinction: When does the EmpCo apply, and when does the national Unfair Commercial Practices Act (UWG) apply?

EmpCo is an EU directive and applies directly only between Member States. What is relevant for businesses is the national implementation:

• In Germany: The amendment to the UWG (Federal Law Gazette 2026 I No. 43) transposes EmpCo into German law. The new offences are set out as an annex to Section 3(3) of the UWG and are directly applicable by German courts.
• In other EU Member States: The respective national transpositions apply there, with country-specific penalties and time limits.
• Outside the EU: EmpCo does not formally apply. However, anyone reaching EU consumers (for example, via .com domains offering delivery to the EU) must comply with the rules as soon as commercial activities involving EU consumers take place.

What remains unchanged: Existing rules remain in force

The amendment to the Unfair Commercial Practices Act supplements existing competition law without replacing it. The following remain in force:

• Section 5 of the UWG (Misleading commercial practices): General provision on misleading practices, even without a specific reference to greenwashing.
• Section 5a of the UWG (Misleading conduct by omission): Withholding material information is prohibited.
• Price Indication Regulation (PAngV): Transparency in the labelling of environmental and energy costs.
• Packaging Act (VerpackG): Obligation to register and label packaging.

This is how the GreenClaims Manager helps

Our algorithmic tool analyses all your communications, from product pages to social media campaigns, for potential greenwashing risks in line with the new provisions of the Unfair Commercial Practices Act (UWG). You will receive a structured compliance report with specific recommendations for action for each identified finding. The analysis is based on the legal provisions set out in the Federal Law Gazette (BGBl.) 2026 I No. 43 and the EmpCo Directive (EU) 2024/825. Try it for free now.

Legal notice: This article is for general information purposes only and does not constitute legal advice. For a binding assessment of your specific situation, please consult a specialist lawyer in competition law.

As at: July 2026 | Sources: EmpCo Directive (EU) 2024/825, UWG Amendment BGBl. 2026 I No. 43, BT-Drs. 21/1855.