Bio-based
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Deceptive packaging?
Bio-based
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Deceptive packaging?
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When is “organic” really organic? The Berlin Court of Appeal has taken a close look at advertising with “bio-based” and set strict standards. What does this mean for companies that advertise sustainability?
What is it all about?
The pea milk “vly UNGESÜSST” advertised with the statement “Packaging & lid are bio-based”. However, a consumer association saw this as misleading and filed a lawsuit.
The consumer association argued that the claim “Packaging & lid are bio-based” misleads consumers. The term gives the impression that the packaging is made from 100 percent renewable raw materials. In fact, however, it only contains 82 percent renewable and 18 percent fossil raw materials. A reference to the website is not enough – the information must be provided directly on the packaging.
The manufacturer defended its advertising claim by stating that the term “biobased” is established on the market and is also used by the packaging manufacturer Tetrapack. The Federal Environment Agency also uses the term for packaging that is not made from 100 percent renewable raw materials. Detailed explanations are also available on the website. The FSC Mix label and other labels on the packaging already indicate that it is a mixture of different materials.
The legal background
The law against unfair competition prohibits misleading advertising claims. The standards for environmental and sustainability advertising are particularly strict. The reason: consumers are increasingly turning to environmentally friendly products, but at the same time there is a growing risk that vague terms such as “sustainable” or “bio-based” will create false expectations. There have already been several decisions on climate-neutral and similar terms.
The decision to go biobased in detail
The Berlin Court of Appeal ruled Judgment of 21.01.2025 – Ref. 5 U 103/22 considers the bio-based claim on the packaging to be misleading – and draws clear boundaries for “green” advertising claims.
In the case of ambiguous advertising with an environmental claim, the resulting potential to mislead must regularly be countered by clearly and unambiguously explaining in the advertising itself which specific meaning is relevant.
The core problem was that the term “biobased” is ambiguous. Some consumers understand it to mean “partly made from renewable raw materials”, others expect “100 percent renewable materials”.
A reference to the company website, where clarifying information is provided, was not sufficient for the court. The necessary information must already be on the packaging – where the consumer makes the purchase decision.
What this means in practice
The ruling is a clear warning signal for companies. The message is: ambiguities with green buzzwords are at the expense of the advertiser if they are not clearly explained.
- Clarity is mandatory: ambiguous terms such as “bio-based” or “sustainable” must be explained directly in the context of use.
- Have evidence ready: Companies should also be able to substantiate their statements.
- Observe EU regulations: The new EmpCo Directive (EU) 2024/825 further tightens the requirements. General, unsubstantiated environmental claims will be explicitly prohibited in future.
Food manufacturers, cosmetics companies and packaging producers, for example, are particularly affected. But fashion and retail companies must also check their advertising claims. Those who remain inaccurate risk cease and desist letters, court proceedings and reputational damage.
Conclusion
The ruling highlights a fundamental problem with environmental advertising: Terms such as “bio-based” or “sustainable” sound good, but often remain vague. Companies like to use this ambiguity in marketing for greenwashing – with the risk that the advertising will be classified as anti-competitive.
Companies should therefore carefully review such statements and ensure the necessary transparency. The stricter rules that will apply in future must also be observed. Otherwise, there is not only the threat of legal proceedings, but also a loss of trust among customers.
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