The European Commission has published an FAQ document for the Directive on Empowering Consumers for the Green Transition, clarifying the rules around environmental claims and greenwashing that will apply from September.
The Directive on Empowering Consumers for the Green Transition (ECGT) prevents unfair business-to-consumer commercial practices in all sectors through principle-based rules and a ‘blacklist’ of prohibited actions. It applies to practices such as greenwashing and planned obsolescence.
It entered into force on 26 March 2024, and Member States were required to transpose its provisions by 27 March 2026. Its rules will apply from 27 September 2026.
The ECGT Directive amends two existing consumer directives: the Unfair Commercial Practices Directive (UCPD) and the Consumer Rights Directive (CRD). In this context, it borrows the UCPD’s definition of an ‘environmental claim’.
Any message or representation which is not mandatory under EU or national law – including on-label text, images, graphics or symbols – that claims, explicitly or implicitly, that it has a positive or zero impact on the environment, that it outperforms other products in an environmental context, or that its impact has or will improve over time constitutes an environmental claim.
If an environmental claim is made, it must be verified by an independent third-party expert; this could be a public authority or a private entity, including those from third countries outside the EU. In any case, the organization must be free from conflicts of interest and have experience and competence in environmental issues.
Verification experts must also provide ‘credible, objective, and regular’ assessments. The ECGT Directive does not specify exactly how often these assessments must take place, but it suggests annual or biennial reviews, and additional updates if changes are made.
The results must be made available to consumers, but again, the Directive does not specify how. As such, the Commission states that ‘several options are possible as long as consumers can easily access the information’ – this includes QR codes on product packaging that lead to the business’ website.
A harmonized notice on the legal guarantee of conformity will become mandatory on the date of application and must be clearly displayed at the point of sale. However, a harmonized label on the commercial guarantee of durability is voluntary. If used, it should be displayed clearly enough that consumers can easily identify it – directly on the packaging itself, for example.
Violations
The Directive mandates a case-by-case assessment of accusations surrounding misleading actions or omissions; this might include a ‘transactional decision test’ to gauge whether a business practice is likely to trick consumers into a spending decision they wouldn’t otherwise make.
As in the UCPD, the ECGT defines a misleading environmental claim based on ‘the presumed expectations of an average consumer who is reasonably well informed and reasonably observant and circumspect.’
Even a product label that uses images (trees, leaves, water drops, rainforests, etc.) or certain colours (e.g. green or blue text or backgrounds) commonly associated with environmental sustainability, but lacks valid specification of its sustainability credentials (e.g. officially recognized sustainability certification), may be subject to an assessment.
“Traders should exercise caution when using icons, symbols, images, or artwork that could be perceived as (implicit) environmental claims or trust marks,” the document reads. “For example, a green leaf or water drop, when combined with logos or positioned next to statements about sustainability or natural ingredients, may be seen by the average consumer as a voluntary trust mark or quality mark.”
Brand and product names may also violate the ECGT Directive, regardless of their protection under intellectual property law, as they could potentially make an explicit or implicit environmental claim (e.g. terms such as ‘green’, ‘eco’ or ‘natural’). These would most likely be investigated on a case-by-case basis.
Conversely, prohibitions that are featured on the ‘blacklist’ do not require a demonstration of negative impact and are automatically banned. This includes a ‘generic environmental claim’, or a written or oral sustainability claim that is not expanded on the same medium (e.g. a label or advertisement), whether directly or through a clear external link. Colours and images are not considered generic environmental claims by themselves.
Another prohibited practice is the inclusion of irrelevant claims that could mislead consumers into believing a certain product is more sustainable than its market competitors. For example, businesses may not feature claims that a paper product or pack does not contain plastic.
Misleading claims also apply to social characteristics, including human rights – the quality or fairness of working conditions, gender equality, inclusion and diversity, animal welfare, etc. It could include dietary claims if they are explicitly linked to the environment (e.g. ‘vegan = better for the planet’).
Where it fits
The scope of the ECGT Directive is strictly limited commercial practices taking place before, during and after business-to-consumer transactions. Business-to-business operations are covered by instruments such as the Misleading and Comparative Advertising Directive, the EU Platform-to-Business Regulation, and Directive (EU) 2019/633 on unfair trading practices in the agricultural and food supply chain.
Corporate sustainability reporting is also not in the scope of the ECGT Directive, since these reports are usually mandatory and addressed to investors. Reports of this kind are covered by legislation such as the Corporate Sustainability Reporting Directive.
This article does not constitute legal advice or official regulatory guidance. See the full legal text to learn more about how the law applies to your packaging.
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