The Empowering Consumers Directive (EmpCo) imposes stricter requirements on environmental and sustainability claims. Broad green claims carry greater risk and must be supported by evidence. We identify particularly sensitive claims and show how to make sustainability communications clear, substantiated, and defensible.
In a nutshell
- The Empowering Consumers Directive (EmpCo) (Directive (EU) 2024/825) aims to protect consumers better against unfair practices relating to the environmental friendliness of companies or products.
- The EmpCo requirements have been implemented in Germany in the Act Against Unfair Competition (UWG) and apply since 27 September 2026.
- Companies should review all statements, claims and seals on environmental, climate and sustainability topics.
What is the EmpCo Directive – and why does it target sustainability claims in particular?
The EmpCo aims to help consumers make sustainable purchasing decisions and prevent greenwashing, meaning misleading claims about the environmental impact of a company or its products. To achieve this, environmental and sustainability claims must be clear and verifiable, whether they appear on a website, social media, packaging, a product data sheet, or in a sales conversation.
This principle is not new. It reflects a long-standing rule of unfair competition law: Misleading commercial practices are prohibited. A statement may be misleading not only when it is factually incorrect, but also when its overall presentation creates a false impression.
This is especially important for essential product characteristics. These now explicitly include environmental and social features, along with aspects of the circular economy such as product durability and reparability.
Which statements and practices become particularly risky under EmpCo?
In Germany, the EmpCo adds new practices to the blacklist of the Act Against Unfair Competition (UWG). These practices are always considered unfair, without any further assessment of the individual case. As a result, some wording that was common is no longer permitted since September 2026. Four areas require particular attention:
General environmental claims without evidence
General environmental claims include broad terms such as “environmentally friendly”, “green”, “climate friendly”, “bio based”, or “sustainable”. These terms do not explain what the claimed environmental benefit actually involves, so consumers cannot verify them.
Under EmpCo, companies may use such claims only if they can support them with evidence. The basis, scope, and limits of each claim must be clear. This includes the relevant measurements, studies and comparison values. Anyone using the term “environmentally friendly” should be able to explain what it relates to, how it was measured and which threshold applies.
“Climate neutral” claims based on offsetting
EmpCo also covers claims based wholly or mainly on offsetting greenhouse gas emissions when they suggest that a product has a neutral, reduced, or positive effect on the climate. Buying certificates does not mean that a product causes no emissions.
Companies that use offsetting should say so clearly and must not present it as absolute climate neutrality.
The German Federal Court of Justice has already addressed this issue in its judgment of 27 June 2024, case I ZR 98/23. It held that the term “climate neutral” is misleading if the advertisement itself does not explain that the claim is based only on offsetting.
Sustainability seals without a proper certification system
EmpCo also places stricter requirements on seals and quality marks. A voluntary trust seal or similar symbol may no longer be used as proof of environmental or social quality unless it is backed by a transparent, independent verification process or required by a public authority.
Companies should therefore stop using their own environmental logos or internal seals if no proper verification system supports them. They should review every seal in use and confirm that it is backed by a valid certification system.
Durability, reparability, and software updates
EmpCo also applies to circular economy claims. Information about product lifespan, reparability, and software updates must be accurate. Risky examples include vague promises such as “particularly durable” without a stated period, failure to disclose the negative effects of an update, and incorrect information about spare parts or accessories.
This is not only a marketing issue. Product management and after sales teams must also ensure that advertising reflects what the product actually delivers.
What does EmpCo mean for marketing, sales, and product management?
Green claims often become risky when complex facts are condensed into short advertising copy. Websites, packaging and labels offer limited space. Broad terms such as “sustainable” or “climate friendly” can sound absolute while leaving the basis, scope, and limits of the claim unclear.
Marketing, sales, and product management should communicate only claims that have been reviewed internally and can be supported by evidence. This applies to product claims and to statements about the company, such as “We will be climate neutral by …” or “Our supply chain is …”.
Attention: Problems can also arise when claims differ across channels or when sales and marketing shorten them, make them stronger or use them in a different context.
Specific, measurable statements are safer than broad labels. Instead of “climate friendly packaging”, say “the packaging contains 50% recycled PET”. The same principle applies to production claims. Rather than describing goods as “produced sustainably and in a climate friendly way”, state the relevant fact, such as “our production uses only renewable energy”. Clear details about the site, period and scope make claims easier to support internally and communicate consistently.
What are the consequences of unfair practices under the EmpCo?
Companies that fail to comply with EmpCo may face fines and other legal consequences. The available sanctions and their amounts depend on national law.
In Germany, the revised section 19 UWG provides for fines of up to 4% of annual turnover, depending on the circumstances.
How can companies best apply the EmpCo?
Companies should manage environmental and sustainability claims as part of a clear compliance process: Record them, review the evidence, approve them, and keep them up to date. The aim is not to say less about sustainability, but to make each claim precise.
The following five steps provide a practical starting point:
- Create an inventory: Record every environmental and sustainability claim and where it appears, including websites, packaging, seals, sales materials, and social media.
- Classify each claim: Decide whether it is broad or specific. Treat absolute terms such as “climate neutral” or “100% sustainable” as high risk.
- Review and document the evidence: Gather measurements, test reports, studies, and supply chain records. Clearly link each piece of evidence to the claim it supports.
- Make claims specific: State the scope, basis, method, and limits. Useful wording includes “based on …”, “measured according to …”, and “applies to …”.
- Set an approval process: Define who reviews each claim, which standard applies, and how unsupported claims are handled. Do not publish a claim until the evidence is available.
Conclusion: Claims must be supported by evidence
EmpCo does not ban green claims, but it sets a higher standard. Companies that make sustainability claims must explain exactly what they mean and have evidence ready to support them. This requires more work, but precise claims are both more reliable in legal terms and more credible.
