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IP, IT and Data Protection, Europe

Implementation of the EmpCo Directive Is Coming. Is Your Advertising Ready?

Environmental protection is of great importance. For that reason, environmental claims are frequently used in advertising. Environmental and climate-related attributes have a positive effect on sales promotion and are also capable of enhancing a company's public image.

The courts assess environmental claims very strictly. Accordingly, caution is already advisable when using such claims in order to avoid crossing the line into unlawful "greenwashing" and becoming vulnerable to legal challenges.

From September, 27 2026 onwards, the statutory rules governing environmental advertising will become significantly more stringent. On that date, the latest amendment to the German Unfair Competition Act (UWG) will enter into force, implementing the European EmpCo Directive. For the first time, there will be express statutory provisions directly regulating advertising that contains environmental or climate-related claims.

For example, general environmental claims such as "green", "biodegradable" or "environmentally friendly" will be prohibited unless they can be substantiated by recognised environmental performance, contain clear specifications, and are accompanied by explanatory information in the immediate context of the claim. Future-oriented claims, such as "climate-neutral by 2050", will require a measurable and realistic implementation plan that is subject to regular review by independent experts.

Sustainability labels will also be subject to strict regulation. Under the amendment to the UWG, their lawful use will require either a transparent and credible certification system or the label must be issued by a public authority. Self-created labels will therefore no longer be permissible.

If environmental advertising fails to comply with the new rules, it will be open to challenge. In particular, associations entitled to enforce competition law may issue cease-and-desist warnings. If the matter cannot be resolved out of court, applications for preliminary injunctions or court proceedings may follow. Such proceedings will primarily concern claims for injunctive relief. In certain circumstances, however, claims for damages or even administrative fine proceedings may also be conceivable. In addition, reputational damage may arise, as it can be expected that associations will publicise their enforcement activities and the successes achieved.

Companies are therefore well advised to familiarise themselves with the requirements applicable to lawful environmental and climate-related advertising at an early stage. They should also carefully assess now whether their current advertising activities present any risks in light of the UWG amendment. Otherwise, from September, 27 2026 onwards, they may face competition-law warning letters requiring a response, potentially under considerable time pressure.

Henrik Steffen Becker
Attorney-at-Law, Partner and certified Specialist Lawyer for Intellectual Property Law
RITTERSHAUS, Frankfurt am Main