EmpCo Directive and reform of the German Act against Unfair Competition (UWG): New rules for sustainability messaging in advertising

The new EmpCo Directive (EU) 2024/825 and the accompanying amendment to the German Act against Unfair Competition (UWG), which come into force in September 2026, are about to bring far-reaching changes to consumer protection and competition law. The new rules primarily target environmental and sustainability-related claims in marketing communications. From September, catchy terms such as “climate neutral” or “green” may only be used if they can be substantiated objectively and transparently. Internally developed sustainability labels without official accreditation will no longer be permissible, nor will vague promises about future environmental performance without a verified action plan to back them up. Companies across all sectors will need to conduct a thorough review of their communications – from social media to product packaging. What are the risks and opportunities presented by the new legislation, and what can companies do to avoid accusations of greenwashing and fines?

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