A further step towards environmental transparency of companies and the protection of consumers and users: the European Union adopts the Greenwashing Directive

On 26 March 2024, the Directive (EU) 2024/825 of the European Parliament and of the Council of 28 February 2024 amending Directives 2005/29/EC and 2011/83/EU as regards empowering consumers for the green transition through better protection against unfair practices and through better information (“Greenwashing Directive”) entered into force.

The main objective of this new directive is to protect consumers and users against unfair commercial practices, in particular, against the practice known as greenwashing, which consists of presenting a product, service or company as sustainable or environmentally friendly when in fact it is not. This practice is carried out through the use of vague, exaggerated, or unfounded claims, or the omission of relevant information.

The Greenwashing Directive also addresses issues such as early (or planned) obsolescence of products or the information that companies must make available to consumers and users on the guarantee of conformity and the commercial guarantee of products and services.

Furthermore, the Greenwashing Directive aims to reinforce the “European Green Deal” promoted by the European Union (“EU”) consisting, among other things, of promoting a series of legislative measures that will enter into force in the coming years aimed at extending the life of products and making clearer and more transparent information available to consumers and users about the products and services they purchase.

Main new features

• Definition of terms

Clear and precise definitions are established for terms such as “environmental claim”, “generic environmental claim”, “recognized excellent environmental performance”, “sustainability label”, “repairability score” or “certification scheme”.

• Misleading practices or omissions

It is added new cases which will be considered as misleading practices:

i. Claims that contain false or misleading information or that are likely to mislead consumers and users with regard to environmental or social features of products, services, or companies, as well as the durability, reparability, or recyclability of a product.

For example, portraying a device as made entirely from recycled materials, when in fact only certain components of it are made from recycled materials.

ii. Environmental claims that are not verifiable, not supported by an actual implementation plan and not endorsed by an independent third party so that they can be consulted by consumers and users.

For example, using slogans such as "We care about the planet" or "We work to improve the planet" without providing sufficient information to consumers and users in order for they to be able to verify that the company is actually making efforts to achieve such purpose.

iii. Benefit claims that are irrelevant and do not result in an actual benefit for the product.

For example, claiming that a particular brand of bottled water is gluten-free or that a sheet of paper does not contain plastic.

iv. It shall also be considered a misleading omission when a company presents a service that compares products and provides consumers with information on environmental or social features or on aspects such as durability, reparability or recyclability, and fails to provide information on the method of comparison, the products being compared and the suppliers of those products, as well as the measures imposed to keep such information up to date.

• Unfair practices

It is added new cases which will be considered unfair in all circumstances:

i. Displaying a sustainability label that is not endorsed by a public authority.

ii. Generic environmental claims for which the company cannot demonstrate recognized excellent environmental performance.

iii. Environmental claims about a product or company which are limited to certain aspects of the product or activity.

iv. Claims based on CO2 offsets or that a product has a neutral, reduced, or positive impact on the environment in terms of CO2 emissions.

v. Presenting legal requirements imposed on all products in the category as a distinguishing feature.

vi. Withholding information on a software update may adversely affect the operation of a device or presenting it as necessary when it is not.

vii. Withholding information on the durability of a product.

viii. Falsely claiming that under normal conditions of use a product has a certain durability.

ix. Inducing consumers to replace, refill or restock consumable elements of a product earlier than necessary.

x. Withholding information about the deterioration of the functionality of a product when non-original parts or accessories are used or claiming that the use of non-original parts or accessories may affect its functionality.

• Duty to inform

It is established new information obligations on warranty, repairability and software updates of products:

i. Legal guarantee: Companies shall make available to consumers and users clear and comprehensible information on the legal guarantee of products and services.

ii. Commercial guarantee: When the company offers a commercial guarantee of durability free of charge covering the entire product and lasting more than two (2) years, information about this guarantee must be made available to consumers and users, indicating that the product also includes a legal guarantee.

This information should be provided in a prominent way before consumers and users are contractually bound to the company by means of a standardized notice and labelling made available by the European Commission.

iii. After-sales service: Consumers and users should be informed, where appropriate, about the existence and conditions of after-sales service and commercial guarantee.

iv. Software updates: Consumers and users should be informed about the time period (or reference date) during which the company will provide software updates.

v. Repairability of products: Consumers and users should be informed in advance about the repairability score of products or, failing that, about the availability and restrictions on repair.

Next steps

Member States will have twenty-four (24) months to transpose the content of the Greenwashing Directive into national law, i.e. by 27 March 2026 at the latest, for its implementation as of 27 September 2026.

Conclusions

In short, the Greenwashing Directive aims establishing a regulatory framework to regulate unfair commercial practices related to the way in which companies present their products, services, or their own corporate image as more sustainable or environmentally friendly when in fact they are not.
The Greenwashing Directive also aims encouraging consumers and users to have more information available to them about the products and services they acquire so that they can make more informed and responsible purchasing decisions, and to accelerate the green transition by increasing consumer confidence in environmentally friendly products and services.

April 2024

ALBERTO CHENLO
Associate