Greenwashing poses one of the most significant challenges to the consumer protection framework in the European Union. As customers become increasingly environmentally conscious, brands are ever more inclined to leverage this interest by invoking the language of environmental protection, sustainable development and climate neutrality. Yet these claims do not always reflect the actual characteristics of their products or services. The EU has sought to bring systemic order to this area by clarifying the information obligations of traders and broadening the list of practices deemed unfair.[1] We consider what these changes mean for businesses in practice.
Will we finally see a definition of greenwashing?
Although the concept of greenwashing is widely used, both in everyday language and in legal practice, neither EU nor national law provides a precise definition of the term.
The Directive identifies specific practices which, by their very nature, are likely to mislead consumers as to the environmental impact of their products or services. This is because EU legislators have linked greenwashing to the regime governing unfair commercial practices.
One of the key changes is the expansion of the list of the main characteristics of a product. This category now encompasses information on environmental and social characteristics, as well as circularity aspects, such as:
- durability
- reparability
- recyclability
As a result, claims relating to these characteristics cease to serve a purely marketing function and become subject to legal scrutiny in terms of their accuracy and influence on consumer decision-making.
‘Environmentally friendly’ and ‘climate neutral’ products
The Directive pays particular attention to generic environmental claims.
The use of broad and evaluative slogans suggesting that a product is environmentally friendly or climate-neutral has been deemed unacceptable, unless the trader can demonstrate recognised excellent environmental performance in relation to the product as a whole.
Such claims have been expressly added to the blacklist of unfair practices that are prohibited in all circumstances.
At the same time, the Directive permits the use of specific claims, provided that they are clear, precise and verifiable.
Lower CO2 emissions? Prove it
The Directive also addresses forward-looking claims. Claims suggesting that specific climate or environmental targets will be met are subject to individual assessment. Their admissibility depends on the existence of:
- clear, publicly available commitments
- a realistic plan for their implementation
- independent verification mechanisms
Failure to satisfy these conditions may result in the practice being deemed misleading.
The Directive takes a particularly strict approach to claims based on the offsetting of greenhouse gas emissions.
Claims suggesting that a product has a neutral or positive impact on the climate solely on account of offsetting mechanisms have been unconditionally prohibited.
The EU legislature took the view that such claims could mislead consumers into believing that the given product itself has no adverse environmental impact throughout its entire life cycle.
‘Made in eco’ under the microscope
The new rules also cover sustainability labels and certifications.
The Directive prohibits the use of labels that are not based on a credible certification scheme or that have not been established by a public authority. As a result, a significant proportion of private ‘green’ labels may be found to be non-compliant with consumer law if they fail to meet minimum conditions of transparency, independence and oversight.
Directive 2024/825 is of particular importance from the perspective of national legal systems, including Polish law.
Until now, efforts to combat greenwashing have relied on a patchwork of regulations addressing unfair competition, unfair market practices, and the protection of competition and consumers. The implementation of the Directive will require national legislation to be clarified and may lead to a strengthening of the powers of supervisory authorities in assessing the marketing communications of domestic businesses.
The Directive sets a standard of accountability for the information provided in business-to-consumer relations, shifting the boundary between lawful promotion and unlawful misleading practices.
In practice, this means that marketing strategies, compliance procedures, and the way ESG-related activities are communicated will all need to be reassessed.
The Directive not only brings order to the market in legal terms, but also reinforces the role of reliable information as a tool supporting the green transition.
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[1] Directive (EU) 2024/825 of the European Parliament and of the Council of 28 February 2024
