This EU Directive introduces specific rules to tackle unfair commercial practices that mislead consumers and prevent them from making sustainable consumption choices. It tackles greenwashing by amending the Unfair Commercial Practices Directive (UCPD), specifically Articles 6 and 7.
Environmental claims relating to future environmental performance are considered misleading if they are not substantiated with "clear, objective, publicly available and verifiable commitments set out in a detailed and realistic implementation plan that includes measurable and time-bound targets and other relevant elements necessary to support its implementation" (Art 6). The claims must also be "regularly" verified by an independent third party expert, whose findings will be made available to consumers. Practices are assessed on a case-by-case basis as to whether they are considered misleading and therefore prohibited.
However, the Directive also adds practices to the blacklist in Annex I of the UCPD, which means that such misleading practices are prohibited in all cases. This includes: generic environmental claims unless they are properly substantiated, environmental claims about the entire product or business, claims that a product has a neutral, reduced or positive impact on the environment if the claim is based on offsetting of greenhouse gas emissions.
Member States need to transpose this Directive into national law by 27 March 2026, with further 6 months to apply the new rules.
