I. The End of Misleading Green Claims

Consumers want to buy better – but they don’t believe what they’re being sold. Sustainable products are no longer a niche preference: 54% of consumers now say they’ll pay more for them, up from just 35% in 2022 (Simon Kucher's 2024 Global Sustainability Study). But belief hasn’t followed behavior. Just 9% trust brand sustainability claims (A recent YouGov survey across 18 international markets), while the rest are either skeptical (55%) or indifferent (31%).

For brands, this is more than a perception problem – it’s a strategic choke point. Growth in sustainable consumption is real, but it’s capped by a crisis of credibility. The EU Empowering Consumers Directive offers a path forward: codifying transparency, punishing greenwashing, and giving consumers what they’re asking for – evidence, not empty claims.

Understanding the Empowering Consumers Directive (EmpCo)

The European Union has significantly ramped up its efforts against greenwashing with the Empowering Consumers Directive (EmpCo or sometimes ECGT Directive), officially known as Directive (EU) 2024/825. This directive amends the existing Unfair Commercial Practices Directive (UCPD or Directive 2005/29/EC) and the Consumer Rights Directive (CRD), forming a crucial part of the EU's broader "European Green Deal" initiatives.

What's Its Core Purpose?

The core purpose of EmpCo is to protect consumers from misleading marketing practices in sustainability advertising and to enable them to make more transparent and informed purchasing decisions. By introducing specific rules, the EU aims to tackle unfair commercial practices that prevent consumers from choosing genuinely sustainable products, including those related to early product obsolescence, misleading environmental and social claims, and non-credible sustainability labels. This initiative supports the EU's goal of achieving climate neutrality by 2050 and fostering a more circular economy.

When Does It Apply?

The EmpCo Directive was adopted by the EU Parliament on January 17, 2024, and approved by the Council on February 20, 2024. It was published on March 6, 2024, and officially entered into force on March 26, 2024.

Here's the timeline for brands:

• March 27, 2026: EU Member States must transpose these rules into their national laws.
• September 27, 2026: The new regulations become applicable.

It's important to note that even before the full implementation of EmpCo, legal precedents have already begun to align with its principles. Misleading environmental advertising has long been a punishable offense under competition law. Furthermore, a German Federal Court of Justice (BGH) ruling from June 27, 2024, is cited as already reflecting the requirements set forth by EmpCo. This indicates a growing legal emphasis on truthful environmental claims.

EmpCo vs. The Green Claims Directive: What You Need to Know

The EmpCo Directive is just one significant piece of the EU's strategy to combat greenwashing. It is complemented by the proposed "EU Green Claims Directive", which aims to establish more specific requirements for the substantiation and communication of explicit environmental claims. The Green Claims Directive, for instance, proposes a system of pre-certification by independent experts for environmental claims and includes provisions for substantial penalties, such as fines of at least 4% of annual turnover.

Important Note: While the Green Claims Directive has faced delays and even an announced intention for withdrawal by the European Commission on June 20, 2025, amidst political pressure and internal disagreements, this does NOT mean companies can use green claims as they please. This article outlines how the Empowering Consumers Directive (EmpCo) has more than enough robust provisions to prevent misleading environmental claims and hold businesses accountable.

Why This Matters for Brands

This is not just a legal update; it's a fundamental shift in how businesses must communicate sustainability. Companies must critically review their marketing communications and products to ensure compliance with these stringent new rules well before 2026. The directive demands concrete, verifiable plans for future environmental claims, requiring independent third-party monitoring of progress. The prohibition on offsetting-based claims also presents a significant challenge for companies with global advertising strategies. Ultimately, this necessitates that "Green Claims must be optimized" to be clear, fair, reliable, and genuinely support consumers in making sustainable choices.

II. Understanding Green Claims: Definitions and Impact

Welcome to the heart of the matter for brands navigating the green transition. The Empowering Consumers Directive fundamentally redefines how environmental claims can be made. It's no longer enough to do good; you must also prove it, clearly and consistently.

Defining a "Green Claim": Broader Than You Think

Based on the EmpCo Directive, an "environmental claim" (often referred to as a "Green Claim") is defined very broadly. It encompasses any message or representation that is not mandatory under Union or national law. This includes information in any form, such as:

• Text: Slogans, product descriptions, website copy.
• Pictorial elements: Images, infographics.
• Graphic elements: Logos, symbols, icons.
• Symbolic representations: Labels, certifications.
• Brand elements: Brand names, company names, product names themselves.

Crucially, the claim must be made within the context of a commercial communication and explicitly or implicitly state or imply that a product, product category, brand, or trader has:

• A positive or zero impact on the environment.
• Is less damaging to the environment than others.
• Has improved its environmental impact over time.

This broad definition covers claims related to climate change, energy efficiency, circularity, pollution, or biodiversity. So, whether it's a "Green Clean" product name or a "Carbon Neutral" logo, EmpCo applies.

What is "Greenwashing" (and why your brand needs to avoid it):

Greenwashing is directly defined by EmpCo as an inaccurate, unsubstantiated, or unverifiable environmental claim. This is a critical point:

Even if your brand does genuinely engage in sustainable practices, if those claims aren't rigorously substantiated with evidence or verified by a credible third party, you could still be engaging in greenwashing. It's about the proof as much as the practice.

Your brand needs to avoid greenwashing due to significant legal and reputational consequences:

• Legal Action: In most countries, misleading environmental advertising can already be punished as a competition violation under existing law. With the EmpCo Directive, this is significantly strengthened, as it introduces new "per se prohibitions" where practices are considered unfair in all circumstances, meaning no individual case-by-case assessment by courts is needed. Competitors and qualified consumer protection associations can take legal action, including issuing warnings.
• Stricter Penalties: While EmpCo strengthens existing frameworks, the (currently delayed/withdrawn) EU Green Claims Directive proposal indicates the direction of stricter enforcement, proposing penalties such as fines of at least 4% of annual turnover and exclusion from public procurement. Even without the Green Claims Directive, Member States must ensure effective, proportionate, and dissuasive penalties for infringements of EmpCo.
• Reputational Damage: Beyond legal penalties, being accused of greenwashing can severely damage a brand's reputation and erode consumer trust. A survey by the Nuremberg Institute for Market Decisions (NIM), reported by Handelsblatt, found that 72% of respondents steer clear of businesses linked to false climate protection claims, indicating strong consumer punishment even for accusations of greenwashing.

III. Navigating Prohibitions: What Your Brand Cannot Do

The EmpCo Directive adds new categories of practices to the "black list" of commercial practices that are prohibited in all circumstances because they are considered inherently unfair, meaning no case-by-case assessment by courts is required.

Key Prohibitions: What Your Brand Absolutely CANNOT Do Anymore

• Generic Claims:
• • A "generic environmental claim" is defined as "any environmental claim made in written or oral form, including through audiovisual media, that is not included on a sustainability label and where the specification of the claim is not provided in clear and prominent terms on the same medium."
  • Generic claims like "environmentally friendly," "eco-friendly," "green," "nature’s friend," "ecological," "environmentally correct," "climate friendly," "gentle on the environment," "carbon friendly," "energy efficient," "biodegradable," or "biobased" are now prohibited if the trader cannot demonstrate "recognised excellent environmental performance" relevant to the claim. "Recognised excellent environmental performance" means environmental performance compliant with specific EU regulations (like Ecolabel Regulation EC No 66/2010), national/regional EN ISO 14024 Type I ecolabelling schemes, or top performance under other applicable Union law.
  • Examples:
  • • Old: Simply stating "eco-friendly" or "climate-friendly" for a product.
    • New: If the claim is "climate-friendly packaging," it would be considered generic. However, stating that "100% of energy used to produce this packaging comes from renewable sources" would be a specific claim, and thus not fall under this prohibition (though other UCPD provisions would still apply). Even generic claims like "sustainable" or "responsible" remain prohibited if based solely on environmental performance, because these terms also relate to other characteristics, such as social characteristics.
• Misleading Overall Claims: It is prohibited to make "an environmental claim about the entire product or the trader’s entire business when it concerns only a certain aspect of the product or a specific, unrepresentative activity of the trader’s business."
• • Example: If you market a product as "Green Cream" giving the impression of an overall environmentally friendly product, but only the packaging is made from 30% recycled material, this is now considered misleading. Similarly, claiming that a product is "made with recycled material" when only the packaging is recycled, or implying that a business solely uses renewable energy when some facilities still rely on fossil fuels, would be prohibited.
• Offsetting Claims: A significant prohibition is on "claiming, based on the offsetting of greenhouse gas emissions, that a product has a neutral, reduced or positive impact on the environment in terms of greenhouse gas emissions."
• • Examples: Claims like "climate neutral," "CO2 neutral certified," "carbon positive," "climate net zero," "climate compensated," "reduced climate impact," and "limited CO2 footprint" are affected. These claims are prohibited because they can give consumers the false impression that the product itself or its production/delivery has no environmental impact. Such claims will only be allowed if they are based on the actual lifecycle impact of the product within its value chain, and not on the offsetting of greenhouse gas emissions outside it, as these are not considered equivalent. This is indeed a big change for many brands relying on offsetting as a primary claim. However, companies are not prevented from advertising their investments in environmental initiatives, including carbon credit projects, as long as this information is provided in a non-misleading way.

• Misleading Product Comparisons: It is prohibited to compare products based on environmental characteristics without providing clear, adequate, and up-to-date information about the comparison methodology, the products and suppliers being compared, and measures to keep the information current. This includes the omission of methodology details when making direct comparisons.
• • Example: Simply stating "Less water than other products!" without providing details on the comparison methodology shown on the packaging would be considered misleading under the new rules. Similarly, if your brand offers a service comparing products' environmental features, you must disclose the comparison method, the products/suppliers involved, and how you ensure the information remains current.
• Self-Evident Claims: It is prohibited to "present requirements imposed by law on all products within the relevant product category on the Union market as a distinctive feature of the trader’s offer."
• • Examples: If "30% recycled content" becomes a legally mandated requirement for a product category, or if a "recipe without microplastic" is already standard industry practice, presenting these as unique benefits would be prohibited. The purpose is to prevent traders from leveraging compliance with basic legal requirements for a competitive advantage.
• Fake Sustainability Labels: The directive prohibits "displaying a sustainability label that is not based on a certification scheme or not established by public authorities." This means that self-developed sustainability labels are no longer permitted.
• • A "sustainability label" is defined as "any voluntary trust mark, quality mark or equivalent, either public or private, that aims to set apart and promote a product, a process or a business by reference to its environmental or social characteristics, or both, and excludes any mandatory label required under Union or national law."
  • For a label to be allowed, it must be either:
  • 1. Established by public authorities. Examples include logos under EMAS (Eco-Management and Audit Scheme) or the EU Ecolabel.
    2. Based on a "certification scheme." A "certification scheme" is a third-party verification scheme that must meet strict criteria, including:
    3. • It must be open under transparent, fair, and non-discriminatory terms to all traders willing and able to comply.
       • The requirements must be developed by the scheme owner in consultation with relevant experts and stakeholders.
       • It must set out procedures for dealing with non-compliance and provide for the withdrawal or suspension of the label.
       • Monitoring of compliance must be an objective procedure carried out by an independent third party whose competence and independence are based on international, Union, or national standards and procedures. This significantly impacts companies operating their own internal labels, potentially requiring them to cease use or open them up to competitors and transfer ownership to an independent body.
• Future Environmental Performance Claims: Claims about future environmental performance, such as "carbon neutral by 2030" or similar objectives, are prohibited if they are "not supported by clear, objective, publicly available and verifiable commitments given by the trader and set out in a detailed and realistic implementation plan that shows how those commitments and targets will be achieved and that allocates resources to that end."
• • This implementation plan must include:
  • • Measurable and time-bound targets.
    • Other relevant elements, such as budgetary resources and technological developments.
    • It must be regularly monitored by an independent third-party expert who is independent from the trader and free from conflicts of interest.
    • The findings of this third-party expert must be made available to consumers. Mere declarations of intent are no longer sufficient; concrete, verifiable plans and published monitoring are required. This necessitates serious strategic planning for brands making such long-term sustainability promises.

IV. The Broader Impact: Other Consumer Protections

While the spotlight is often on green claims, the EmpCo Directive also introduces crucial consumer protections that extend beyond environmental statements. These provisions aim to ensure transparency and fairness in other key areas, helping consumers make more informed purchasing decisions.

Durability and Reparability: A New Focus on Product Lifespan

The directive takes a strong stance against practices that limit product durability and hinder repair, aiming to reduce consumer frustration and environmental waste.

• No More Limiting Product Lifespan Through Design or Software Updates: It's now prohibited to make commercial communications about goods that contain features introduced to limit their durability, especially when the brand is aware of these features and their effects. This directly targets "early obsolescence," where products are deliberately designed to become obsolete or non-functional prematurely.
• • Example: This could include software designed to downgrade functionality after a certain period, or hardware components engineered to fail after a specific number of uses.
• Brands Must Inform Consumers if Software Updates Negatively Impact Performance: Brands are now prohibited from withholding information from consumers about software updates that will negatively impact the functioning of goods with digital elements or the use of digital content or services.
• • Example: If a smartphone update will reduce battery life, slow down app performance, or generally make the device less responsive, consumers must be informed before they update. Presenting a software update as "necessary" when it only enhances functionality is also prohibited.
• Brands Must Be Truthful About Repair Possibilities and Availability of Spare Parts/Instructions: It is now prohibited to falsely claim that a product allows repair when it does not. Furthermore, if a harmonized reparability score isn't established at the EU level, brands must provide other relevant repair information made available by the producer.
• • Example: This includes details like the availability and estimated cost of spare parts, procedures for ordering them, and access to repair and maintenance instructions, along with any repair restrictions.

Enhanced Pre-Contractual Information: Clarity Before You Buy

The directive strengthens the information consumers receive before making a purchase, particularly for distance contracts, ensuring they have all the essential details upfront.

• Clear Information on Legal Guarantees (Minimum 2 Years): Consumers must receive a harmonised notice reminding them of the existence and main elements of the legal guarantee of conformity for goods, including its minimum duration of two years. This ensures consumers easily understand their basic rights across the EU.
• Commercial Guarantees of Durability (If Offered for >2 Years) Must Be Clearly Displayed with a Harmonised Label: If a producer offers a commercial guarantee of durability for the entire good at no additional cost, and it lasts more than two years, this information must be provided using a harmonised label.
• • Example: This label should be easily identifiable, perhaps placed directly on the product packaging or prominently on the retail shelf.
• Information on Minimum Software Update Periods (Including Security Updates): For goods with digital elements, digital content, and digital services, brands must inform consumers about the minimum period during which the producer or provider commits to providing software updates, including security updates.
• New for Environmentally Conscious Consumers: Information on Environmentally Friendly Delivery Options: Brands are now required to inform consumers about the availability of environmentally friendly delivery options.
• • Example: This could include delivery by cargo bike or electric vehicle, or the possibility of bundled shipping, where these options are available. This aims to empower consumers to make more sustainable purchasing decisions beyond the product itself.

V. What Brands Need to Do Now

The clock is ticking! With the EmpCo Directive becoming fully applicable from September 27, 2026, brands need to take proactive steps to ensure compliance and avoid severe penalties. This isn't just about legal checkboxes; it's about building genuine consumer trust in a rapidly evolving market.

1. Review and Audit Your Claims

Start by conducting a thorough audit of all your existing marketing communications and products, especially those with on-pack claims and labels. Every environmental and sustainability claim needs scrutiny.

• Generic Claims: If you're using broad terms like "eco-friendly" or "green," ensure you can demonstrate "recognised excellent environmental performance" as defined by the directive.
• • Action: Replace vague statements with precise, verifiable facts.
• Overall Claims: Avoid making sweeping environmental claims about your entire product or business if the benefit only applies to a specific aspect or an unrepresentative activity.
• • Action: Ensure your claims accurately reflect the true scope of the environmental benefit.
• Offsetting Claims: Claims like "climate neutral" based solely on offsetting greenhouse gas emissions are now prohibited.
• • Action: Focus on actual lifecycle impact reductions within your product's value chain. You can still advertise investments in environmental initiatives, but clearly distinguish them from direct product claims.
• Future Claims: If you're making promises about future environmental performance (e.g., "carbon neutral by 2030"), these require clear, objective, publicly available, and verifiable commitments with a detailed, monitored implementation plan.
• • Action: Develop robust, transparent roadmaps for your long-term sustainability goals, backed by data and external verification.
• Self-Evident Claims: Don't advertise features that are already legally mandated or standard industry practice as unique selling points.
• • Action: Only highlight positive steps or features that genuinely go beyond the mandatory requirements.
• Transparent Comparisons: If you compare your products based on environmental or social characteristics, you must provide clear, adequate, and up-to-date information about the comparison methodology, products, and suppliers.
• • Action: Make your comparison data and methods easily accessible and understandable for consumers.

2. Invest in Transparency & Comprehensive Product Information

The directive is all about empowering consumers through clear, reliable information. This means focusing on genuine efforts and robust data across your product lifecycle.

• Validate Sustainability Labels: Self-created sustainability labels are no longer permitted. Any label you display must be established by public authorities or based on a third-party certification scheme meeting strict criteria.
• • Action: Assess your current labels for compliance; be prepared to adapt or cease use of proprietary labels.
• Be Honest About Digital Product Performance: You cannot withhold information about software updates that negatively impact digital product functionality. Also, don't present an update as "necessary" if it only adds new features.
• • Action: Provide clear, upfront disclosures about the potential impact of updates.
• Address Durability and Repairability Head-On:
• • Avoid Planned Obsolescence: Do not market goods with features deliberately limiting durability if you are aware of them.
  • Truthful Durability Claims: Don't falsely claim a product has a certain durability under normal use.
  • Accurate Repair Information: Be truthful about repair possibilities, including spare parts availability, estimated costs, and access to instructions. Provide harmonized reparability scores where applicable.
  • Consumables: Do not induce early replacement of consumables or misrepresent functionality impairment when using non-original parts.
  • Action: Proactively provide clear information on commercial guarantees of durability and ensure consumers receive the harmonised notice about the legal guarantee of conformity.
• Inform on Software Update Periods: For digital goods/services, inform consumers about the minimum period for which you commit to providing software updates, including security updates.
• • Action: Clearly communicate your update commitment periods.
• Offer Eco-Friendly Delivery Options: Where available, inform consumers about environmentally friendly delivery choices.
• • Action: Highlight options like cargo bike, electric vehicle, or bundled shipping.

3. Educate Your Team

The EmpCo Directive introduces significant changes across the entire business, from product development to marketing and legal.

• Action: Ensure all relevant teams – marketing, product, legal, R&D, supply chain – are fully aligned and educated on the new rules. Foster a culture of transparency and accountability from concept to communication.

4. Embrace Digital Tools

New technologies can be powerful allies in meeting the directive's transparency demands.

• Action: Explore how tools like info.link in combination with GS1 Digital Link QR codes can help you provide consumers with detailed, verifiable information about your products' environmental and durability characteristics.

5. Prepare for Change

The EmpCo Directive, which applies as a national law by September 27, 2026, signals a profound shift. This is the EU's first major step towards much stricter laws on green advertising, aiming to create a uniform consumer protection system.

• Action: View this directive not as a burden, but as an opportunity to solidify your brand's commitment to genuine sustainability. The legal landscape is already aligning with EmpCo's requirements, so early preparation is key to staying ahead.

VI. Conclusion: Building Trust in a Greener Future

The EmpCo Directive isn't just another piece of legislation; it's the EU's clear signal for a new era of genuine sustainability. Its core aim is to empower consumers with reliable information, ensuring that their choices truly contribute to a greener future and the EU's ambitious climate neutrality goals.

Compliance as Your Competitive Edge

This shift presents an unparalleled opportunity for brands. Forget compliance as a burden – think of it as your next competitive edge. Why? Because consumers are ready to reward authenticity:

• Willingness to Pay: A staggering 80% of consumers are willing to pay more for sustainably produced goods, even amidst economic pressures. This isn't a niche; it's a mainstream purchasing driver. (PwC 2024 Voice of the Consumer Survey)
• Demand for Transparency: Research shows 64% of shoppers would switch brands for more comprehensive product information, and a remarkable 93% want to know what's in their food and how it's made. Consumers are actively seeking proof, not just promises. (FMI/NielsenIQ report)
• Digital Engagement: The path to trust is increasingly digital. An impressive 84% of Germans are interested in using smartphones for food information via QR codes or barcodes, with 40% already doing so. This highlights a clear avenue for brands to deliver the detailed, verifiable information EmpCo demands. (bitkom)
• Evolving Priorities: Consumers are actively seeking out specific sustainability indicators. For instance, in Germany, attention to animal welfare labels has nearly doubled since 2015 (65%), and more consumers are seeking EU organic labels (59%) and plant-based options (39%). (Nutrition Report 2024)

By proactively embracing EmpCo's transparency requirements, brands can tap into this powerful consumer sentiment, building deep trust and fostering loyalty that goes beyond fleeting trends. Compliance isn't just about avoiding penalties; it's about unlocking growth and market leadership in a conscious economy.

The Future of Branding is Authentic and Transparent

The future of branding is unequivocally transparent, authentic, and truly sustainable. The EmpCo Directive marks an irreversible pivot towards a marketplace where only verifiable environmental and social performance will earn consumer confidence. This is your brand's moment to lead, to innovate in how you communicate your genuine impact, and to build a legacy of trust that resonates with the values of today's and tomorrow's consumers. Embrace this shift, and you'll not only navigate the new regulatory landscape but thrive within it.