Empowering

Consumers

Directive.

The EmpCo Directive aims to better protect consumers from unfair practices in connection with advertising relating to the ecological transition. For companies, this means stricter rules when advertising ecology and sustainability. Our team advises and supports companies in implementing the legal requirements.

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What the EmpCO directive means for advertising and trademark strategies

Sustainability is no longer a niche topic, but often an important sales argument. However, as the number of “green” promises increases, so too does skepticism – and now regulatory pressure. The new Directive (EU) 2024/825 on empowering consumers for the green transition (“Empowering Consumers Directive” or “EmpCo Directive” for short) aims to put an end to the proliferation of environmental claims. For companies, this means The rules of the marketing game are changing fundamentally and becoming much stricter.

Background to the directive: Why did the EU intervene?

The EmpCo Directive is part of the European Green Deal and the European sustainability strategy. In doing so, the EU is not only pursuing environmental and climate goals, but also a consumer rights concern. Consumers should be able to make their purchasing decisions on the basis of reliable information.

The starting point was numerous studies by the EU Commission, which found that a significant proportion of environmental advertising claims were unclear, unsubstantiated or objectively false. Terms such as “sustainable”, “climate-neutral” or “environmentally friendly” were frequently used without it being clear what these statements actually referred to. There was often a lack of verifiable evidence, standardized criteria or transparent information.

From the point of view of the European legislator, the existing regulations of competition law were no longer sufficient to effectively counter these greenwashing practices. Although there were already bans on misleading advertising, these always had to be examined on a case-by-case basis. This is precisely where the new directive comes in. In future, certain practices will be considered unfair per se.

The key points: What is prohibited in advertising

Ban on sweeping environmental statements

Generic claims such as “environmentally friendly“, “green“, “nature-friendly“, “ecological” or “climate-friendly” will be banned in future if they cannot be substantiated by a recognized outstanding environmental performance. Such performance exists, for example, if the product has been awarded the official EU Ecolabel.

Mere claims without certification or precise explanation are no longer enough. Anyone who describes their product as “green” must prove that it is actually and demonstrably more environmentally friendly than competing products – based on official standards.

Accepted official standards are:

The EU Ecolabel
National eco-labels (e.g. the “Blue Angel”).
Other type I environmental labels recognized according to EN ISO 14024.

“Climate neutral” through offsetting is passé

Another focus of the EmpCo Directive is the issue of CO2 compensation. Until now, it was common to advertise products as “climate-neutral”, “CO2-neutral” or “climate-positive”, even if the emissions were not reduced during production, but merely offset by certificates (e.g. reforestation projects in third countries).

The new regulation is strict: in future, it will be an unfair business practice to claim that a product has a neutral, reduced or positive impact on greenhouse gas emissions if this claim is based solely on offsetting emissions.

Important: This concerns product-related statements. Companies may continue to invest in climate protection projects and report on them, but may not suggest that the product itself has no impact on the climate if this is only achieved through external compensation.

Strict rules for sustainability labels

The flood of self-created “sustainability labels” is to be stemmed. In future, only sustainability labels that:

are based on a certification system by an independent third party or
were set by government agencies.

An “eco-label” designed by the company itself without external testing will therefore be anti-competitive in future and may lead to cease and desist letters .

In future, only those sustainability labels will be permitted that are registered as certification marks and compliance with the standard is checked accordingly by an accredited body.

Advertising with “music of the future”

Companies often advertise with targets such as “climate neutral by 2030“. According to the EmpCo Directive, such statements about future environmental performance are only permissible if they are substantiated.

The requirements:

A detailed, realistic implementation plan must be available.
This plan must contain measurable, time-bound targets.
Compliance must be checked regularly by an independent third party.
The results must be made available to consumers.

Mere declarations of intent without an operational foundation are considered misleading.

Effects on trademark law

Trademarks are also affected by the EmpCo Directive. If a trademark contains terms such as “eco”, “green”, “climate neutral”, “sustainable”, “environmentally friendly” or comparable statements or designs, their use may violate competition law requirements in future, even if the trademark already formally exists. This means that although the trademark may be on the register, its use in advertising, on packaging or in online stores may still be inadmissible in future if the requirements of the EmpCo Directive are not met.

This can also become a problem for trademarks that have already been registered for some time, as they may then no longer be used and thus become worthless. There is also the threat of non-use by operation of law and, as a result, the cancellation of such trademarks.

How and by when are the obligations under the EmpCo Directive to be implemented?

The EmpCo Directive came into force on March 26, 2024. However, it does not apply immediately to companies. The member states are first obliged to transpose the requirements into national law.

The following deadlines apply for Germany and the other EU Member States:

It must be transposed into national law by March 27, 2026 at the latest.
The new regulations are to be applied from September 27, 2026.

From this date, the business practices newly classified as unfair may no longer be used. For companies, this means that any environmental and sustainability claims that are still used must fully comply with the new requirements.

Companies should start the adaptation process as early as possible. The EmpCo Directive has a profound impact on marketing, brand management, product communication and internal processes. In many cases, it will probably no longer be possible to implement a short-term changeover shortly before it comes into force.

Strategic implementation of EmpCo obligations: recommended steps

The legally compliant implementation of the EmpCo Directive requires legal, strategic, organizational and communicative adjustments. Companies should consider the following steps at an early stage:

First of all, an analysis of the relevant business activities is recommended. Companies should carefully examine which products, services and communication channels contain environmental or sustainability references. This includes not only traditional advertising, but also packaging, online stores, filter functions, social media, brand presence and image communication.
Based on this, a GAP analysis makes sense. This involves comparing existing environmental and sustainability claims with the future requirements of the EmpCo Directive. The aim is to identify general, misleading or unverifiable statements that could be inadmissible in the future.
A key point is the revision of marketing and communication processes. Environmental claims must no longer be purely marketing-driven, but must be checked, documented and approved internally. In many companies, it will be necessary to make legal checks an integral part of marketing approval.
At the same time, companies should review their verification and documentation structures. Anyone who communicates environmental or sustainability performance must be able to prove this internally. Even if the directive does not prescribe a standardized form of documentation, the importance of reliable evidence increases considerably – especially with regard to possible cease and desist letters or official proceedings.
Another important step is to review existing trademarks, claims and commercial designations. Trademarks with an environmental reference should be analyzed to determine whether their use could be classified as unlawful environmental advertising in the future. If necessary, usage strategies should be adapted or communication concepts revised.

How we can support you in implementing the EmpCo Directive

The EmpCo Directive presents companies with new legal and practical challenges. The distinction between permissible environmental and sustainability advertising, the overlap between competition and trademark law as well as the threat of cease and desist letters and liability risks require careful legal classification and strategic support.

We provide you with comprehensive support in all matters relating to the legally compliant implementation of EmpCo requirements:

Initial assessment and impact analysis
We check whether and to what extent your company, your products, your advertising or your trademarks are affected by the EmpCo Directive. We identify specific risk areas in marketing, product communication and brand management.
Legal advice on EmpCo compliance
We support you in interpreting the new requirements and work with you to develop legally compliant solutions for the use of environmental and sustainability statements – with a practical focus and taking your business objectives into account.
Review of advertising, online stores and product communication
We analyze existing advertising materials, website content, online stores, packaging texts and social media presences for their compatibility with the new EmpCo rules and show where adjustments are needed.
Trademark law review of existing trademarks and claims
We review registered trademarks, slogans and commercial designations with an environmental or sustainability reference with regard to possible conflicts under competition law and advise you on permissible usage scenarios or strategic adaptations.
Drafting and adapting marketing and supply chain contracts
We support you in adapting contracts with agencies, suppliers or sales partners in order to clearly regulate responsibilities for environmental claims, verification and liability issues.
Risk management and warning letter prevention
We identify typical warning letter risks in connection with green claims, assess your individual risk situation and develop strategies for legal protection and avoidance of competition law infringements.
Representation in cease and desist letters, disputes and official proceedings
If claims are made against you due to allegedly unlawful environmental advertising, we will represent your interests in and out of court as well as vis-à-vis competitors, competition and consumer associations and authorities.

Together, we will ensure that your company not only complies with the requirements of the EmpCo Directive, but can also communicate environmental and sustainability issues in a legally compliant, credible and strategically sensible manner in the future.