ESG Quick Guide: EU greenwashing rules: Empowering Consumers for the Green Transition Directive (EmpCo)

EmpCo amends two pieces of EU consumer protection legislation: 

• Unfair Commercial Practices Directive (“UCPD”); and 
• Consumer Rights Directive (“CRD”). 

Its two core objectives are: 

• tackling unfair commercial practices, particularly greenwashing; and 
• improving consumer information to support more sustainable purchasing decisions. 

The Directive does not alter the overall scope or logic of the UCPD or CRD. Instead, it introduces targeted amendments, namely: 

• explicit rules on vague and misleading environmental claims and sustainability labels; and
• harmonised point-of-sale information on guarantee rights, repairability, and durability.

Key dates

Member States were required to transpose EmpCo into national law by 27 March 2026 (see our EmpCo Transposition Tracker). 

The Directive will start applying from 27 September 2026. From that date, companies must ensure that all commercial practices (including green claims and use of sustainability labels) comply with the requirements introduced by the new rules, including for products already on the market. 

Guidance

The European Commission published a set of Q&As /FAQs on Empco, which was updated in May/June 2026 (see our blog post). 

In June 2026, the Consumer Protection Cooperation (“CPC”) Network (the European network of competent public enforcers) published a (non-binding) Common Understanding on the enforcement treatment of “old stock” situations under EmpCo — that is, products or packaging displaying environmental claims or sustainability labels that are manufactured, ordered, distributed, or placed on retailers’ shelves before 27 September 2026 (see our blog post).

Which businesses are in scope?

The UCPD, as amended by EmpCo, applies to business-to-consumer (“B2C”) commercial practices. 

Business-to-business (“B2B”) practices fall outside its scope at EU level. However, Member States may extend (if they wish to) equivalent protections to B2B relationships under national law. 

Several Member States, including Germany and Belgium, have already transposed the UCPD in a way that applies (at least in part) to B2B practices. However, even if the UCPD was originally transposed in a particular Member State in such a way that it covers B2B practices, this does not necessarily mean that EmpCo will also be transposed (in part or in full) to cover B2B practices in that Member State. 

The national transposition landscape for EmpCo itself is mixed: 

• Belgium, Luxembourg, Italy and the Netherlands have confined their transposing measures to the B2C context. 
• France and Spain present the most significant partial extensions to B2B relationships. 
• In France, the draft transposition (as adopted by the Senate on 18 February 2026) produces partial B2B effects through the architecture of the French Consumer Code. The new substantive prohibitions on misleading commercial practices, including on greenwashing, sustainability labels, planned obsolescence, software updates, durability, reparability and consumables, are inserted into Articles L. 121-2 to L. 121-4 and L. 434-1 of the Consumer Code and, through the "bridge" provision of Article L. 121-5, apply to B2C, B2B and non-professional relationships alike. By contrast, the new pre-contractual information duties on the durability guarantee, software-update duration and reparability index inserted in Article L. 111-1 apply to B2C relationships only, and the equivalent duties for distance and off-premises contracts under Articles L. 221-5 and L. 221-14 apply to B2C relationships plus a narrow B2B extension under Article L. 221-3, limited to off-premises contracts where (i) the contract falls outside the principal activity of the solicited professional and (ii) that professional employs five or fewer employees. 
• In Spain, the draft bill amends several laws, including unfair competition legislation, with an overarching consumer-protection policy vector, but certain provisions could also apply to, or affect, B2B relationships. In particular, the amendments to the Unfair Competition Law (Ley de Competencia Desleal, "LCD"), including the general misleading-act rules, the greenwashing prohibitions and the sustainability-label rules, are potentially applicable to B2B relationships. 
• It is also worth mentioning that, even in Member States where the transposing measures have been confined to the B2C context, the tests introduced by these transposing measures may influence the interpretation of B2B rules, such as the general prohibition of misleading commercial practices between businesses.

EmpCo focuses on acts, omissions or communications directly connected with the promotion, sale, or supply of a product (which is a very wide concept and can include financial products and services) to consumers (or businesses, where it has been extended to business practices) within the EU. Our webinar recording contains more detail on how EmpCo might apply to financial products and services. 

Which sectors are covered?

The UCPD applies across all sectors and all industries (including financial services), subject to limited exceptions. 

In practice, the requirements for environmental claims apply to a wide range of communications. For instance, although reports prepared under the Corporate Sustainability Reporting Directive (“CSRD”) are generally outside EmpCo’s scope, if a company uses information from its CSRD report in advertising or marketing directed at consumers or uses its SFDR label in voluntary advertising or marketing, that communication can fall within scope as an environmental claim about a product or business. 

EmpCo adds the following new entries to Annex I to the UCPD - the “blacklist” of commercial practices that are automatically deemed to be unfair in all circumstances, regardless of their effect on any particular consumer. 

Sustainability labels not backed by a qualifying scheme or public authority

Displaying a sustainability label that is not based on a compliant certification scheme or established by a public authority is prohibited.

A “certification scheme” must satisfy minimum conditions: it must be publicly available, open to all traders on fair terms, developed with the involvement of experts and stakeholders, and subject to non-compliance procedures and objective third-party monitoring by an independent competent entity. Existing schemes that do not yet meet these conditions must be adapted by 27 September 2026.

Labels established by non-EU public authorities are also prohibited unless they are based on a qualifying certification scheme.

Businesses should also review their green iconography and trust-mark-style visuals. A “leaf” icon or water drop, when combined with sustainability-related logos or statements, may be perceived by the average consumer as a voluntary trust or quality mark even where no formal label was intended.

Generic environmental claims

Making a generic environmental claim will be prohibited unless the trader can demonstrate “recognised excellent environmental performance” relevant to the claim or unless the claim is clearly and prominently specified on the same medium.

“Recognised excellent environmental performance” can be demonstrated via the EU Ecolabel, officially recognised EN ISO 14024 Type I ecolabel schemes, or “top environmental performance” under other applicable EU law provided the standard used is relevant to the specific claim being made.

For example, the indication “climate-friendly packaging” (without further specification) is a generic claim and will be prohibited unless “recognised excellent environmental performance” can be demonstrated. By contrast, “100% of the energy used to produce this packaging comes from renewable sources” is a specific claim. However, its permissibility will depend on how the claim is presented and whether evidence is provided to support it.

Overly broad claims

It is prohibited to make an environmental claim about an entire product or a trader’s entire business when the claim in fact concerns only a certain aspect of the product or a specific activity of the trader.

For instance, it is prohibited to imply that an entire product is recycled when only its packaging is recycled or to imply that a trader uses only renewable energy when parts of the business still rely on fossil fuels.

Offsetting-based “neutrality” claims about products

Claiming, based on the offsetting of greenhouse gas emissions, that a product has a neutral, reduced, or positive environmental impact, is prohibited. 

A typical example would be claiming that a specific flight is climate neutral because the airline invests in a reforestation project in a tropical rainforest. 

The prohibition does not apply when a “climate neutral, reduced or positive” claim is based on the actual emissions footprint of the product itself, considering its value chain and actual lifecycle. 

Companies will still be able to market their investments in environmental initiatives, including carbon credit or offset projects, provided this is done transparently and does not mislead consumers into believing the company’s product has no environmental impact.

Presenting legal requirements as distinctive features

It is prohibited to present requirements imposed by law on all products within the relevant product category on the EU market as a distinctive feature of the trader’s offer. 

For instance, highlighting that a product “contains no banned chemicals” when the relevant chemicals are already prohibited across the entire product category by EU law would not be permitted.

There is a carve-out where the legal requirement does not apply to all competing products. For example, where certain third-country products are exempt from the relevant rule, a trader whose product complies may highlight this.

Planned obsolescence and durability

EmpCo adds seven further entries in Annex I targeting practices that undermine product durability and repairability. These cover: 

1. withholding information that a software update will negatively affect the functioning of hardware or the use of goods; 
2. presenting a software update as necessary when it only serves to improve features; 
3. marketing goods with built-in features that limit durability where the trader has information about those features; 
4. making false durability claims; 
5. presenting goods as repairable when they are not; 
6. inducing premature replacement of consumables contrary to instructions or technical specifications; and 
7. falsely claiming, or withholding information, that non-trader-supplied spare parts, consumables, or accessories will impair the goods.

In addition to the new blacklist entries, EmpCo also amends Articles 6 and 7 of the UCPD to clarify practices that may be misleading, and therefore prohibited, following a case-by-case assessment.

Unlike blacklisted practices, these require an assessment of whether, in the specific circumstances, the practices concerned cause or are likely to cause average consumers to take a transactional decision that they would not have taken otherwise.

The Directive clarifies that the “main characteristics” of a product that must not be misrepresented expressly include environmental and social characteristics and circularity aspects, such as durability, reparability, and recyclability, which are to be understood broadly. 

“Irrelevant benefits” claims

Advertising benefits to consumers that are irrelevant and do not result from any feature of the product or business is now expressly identified as a potentially misleading practice.

For instance, labelling bottled water as “gluten-free” or marketing paper sheets as not containing plastic would be caught. 

Future environmental performance claims

Environmental claims about future performance (for example, claims that a company is “transitioning to climate neutrality” or will achieve “net zero by 2040”) will be potentially misleading unless they are backed by:

• clear, objective, publicly available and verifiable commitments;
• a detailed and realistic implementation plan with measurable and time-bound targets and allocated resources; and
• regular verification by an independent third-party expert, with findings made available to consumers.

A fixed verification interval is not prescribed: what counts as “regular” will depend on the nature of the commitments and the specific circumstances. The European Commission’s (non binding) Q&As / FAQs state that annual or biennial reviews, and additional checks after major changes, would be in line with best practice. 

This provision will be particularly significant for businesses that have published long-horizon climate transition plans or net-zero pledges. Where those plans are referenced in consumer-facing communications, businesses should ensure the underlying plan meets the substantiation requirements, including independent third-party verification of progress.

Comparison services covering environmental or social characteristics

Where a trader provides a product comparison service that covers environmental or social characteristics or circularity aspects, specific items of information become “material information” under the UCPD, meaning that omitting or unclearly presenting it may constitute a misleading practice if it affects consumers’ transactional decisions. 

The required information includes:

• the method of comparison used;
• the products compared and the suppliers involved; and
• the measures taken to keep the information up to date.

Businesses that operate product comparison tools or “eco-score” features, whether as a primary service or as a feature integrated into a marketplace or product page, should review their methodology disclosures in light of this requirement.

EmpCo amends the CRD to require traders to provide consumers with better and more harmonised pre-contractual information. 

The changes apply across both in-store and online sales channels. 

Key amendments are as follows:

• Traders must provide the reparability score for the goods before the contract is concluded. Currently, an EU-level reparability score applies to smartphones, tablets and household tumble dryers. Where no EU reparability score has been established for the product category, traders must, provided the producer makes the information available to them, disclose: (i) the availability, estimated cost of, and procedure for ordering spare parts necessary to keep the goods in conformity; (ii) the availability of repair and maintenance instructions; and (iii) any repair restrictions. Traders are not expected to actively seek this information from producers, for instance by searching on the product-specific websites. The obligation arises where the producer has made the information available to the trader, or for example indicated it on the product, its packaging, or on tags and labels.
• EmpCo introduces two new harmonised tools: (i) a harmonised notice, which is a mandatory point-of-sale reminder of the statutory legal guarantee of conformity, including its minimum two-year duration and a reference to the possibility of a longer period under national law; and (ii) a harmonised label to be used where a producer offers a commercial guarantee of durability at no additional cost for a period of more than two years covering the entire good. Both tools have been designed to complement each other, and their design and content have been specified by the Commission. Although the specific requirements differ by channel, the display should be prominent: for instance, the harmonised notice may be displayed on a poster or near the checkout counter in-store, or as a general reminder on the trader’s website for online sales, and the harmonised label may be placed directly on the product’s packaging, on the shelf next to the relevant goods, or adjacent to the product image in the online selling interface.
• For goods with digital elements, digital content and digital services, where the producer or provider makes the information available to the trader, traders must disclose the minimum period during which software updates, including security, will be provided, whether expressed as a period of time or by reference to a specific date. A reminder of the existence of the legal guarantee of conformity must also be provided. For distance and off-premises contracts, traders must additionally disclose environmentally friendly delivery options where available, for example, delivery by cargo bike, electric vehicle, or bundled shipping.

The obligation to display the harmonised notice and harmonised label applies as of 27 September 2026. 

Compliance will require changes to store layouts, packaging, and online product pages. 

Producers offering qualifying commercial guarantees of durability may choose to place the harmonised label directly on the product or its packaging in order to benefit from a commercial advantage but traders remain responsible for ensuring the label is clearly visible to consumers.

EmpCo does not address enforcement, leaving Member States with considerable discretion. 

The existing UCPD and CRD enforcement mechanisms remain available, including:

• Regulatory and public enforcement by national competition and consumer protection authorities (the primary route in certain Member States such as Italy and the Netherlands); and
• Private enforcement, including representative and collective actions brought by consumer organisations, NGOs or competitors, available in all Member States.

The Consumer Protection Cooperation ("CPC") is a network of national authorities responsible for the enforcement of consumer protection laws in the EU. With coordination by the European Commission, they can take action to address cross-border issues at EU level. Consumer associations such as the BEUC (which is an umbrella group for 44 independent consumer organisations from 31 countries) can post “alerts” about emerging market threats which are then assessed by the relevant CPC authorities to decide if the allegations merit further investigation. For more information on how the CPC Network operates and examples of commitments made by companies following investigations by CPC authorities, see here and here. As mentioned above, in June 2026, the CPC Network published a Common Understanding on the enforcement treatment of “old stock” situations under EmpCo (see our blog post).

Energy, aviation, fashion and fast-moving consumer goods (“FMCG”) have dominated enforcement to date. The tech sector is anticipated to be the next area of focus, particularly for claims relating to energy efficiency, water usage and other environmental impacts of AI and data centres. 

EmpCo does not harmonise penalties, leaving it to Member States to determine the penalties applicable under their national implementation measures. 

Where a cross-border infringement is pursued under the CPC Regulation, Member States must be able to impose fines of at least 4% of the trader’s annual turnover in the Member State(s) concerned, or at least €2 million where turnover data is unavailable.

Penalty-setting criteria include: the nature, gravity, scale and duration of the infringement; steps taken to mitigate harm; prior infringements; financial benefit gained; and penalties imposed in other Member States for the same cross-border case.

Wider compliance risks, beyond formal fines, include reputational damage, product withdrawal or relabelling costs, and the legal and management costs of private enforcement actions.

In March 2023, the European Commission published a proposal for a Directive on the substantiation and communication of environmental claims (“Green Claims Directive” or “GCD”). 

The GCD was intended to complement EmpCo by setting minimum criteria that companies making claims to consumers in the EU about the environmental benefits and performance of their products or services need to meet, as well as minimum criteria for environmental labelling schemes. 

However, negotiations on the GCD stalled in the summer 2025 and adoption is not expected in the near term. Although the Commission has not formally withdrawn the GCD proposal, no further announcements on this have been made since 2025. 

For more information on the draft GCD, see our blog posts:

• European Commission publishes proposal for a Green Claims Directive to combat greenwashing
• EU Parliament adopts first reading position on the Green Claims Directive
• EU: Council adopts negotiating position on the Green Claims Directive
• How should companies prepare for the EU’s Green Claims Directive?

In addition to EmpCo, businesses should also be aware of the following other regimes:

• Right to Repair Directive. EmpCo and the Right to Repair Directive are complementary instruments, both aimed at extending product lifetimes and reducing premature obsolescence. Companies, particularly those in the electronics and consumer goods sectors, should map their obligations under both Directives simultaneously. For more information on the Right to Repair Directive, see our client alert.
• Ecodesign for Sustainable Products Regulation (ESPR). Environmental claims made in consumer-facing communications may intersect with product-level requirements under the ESPR, which introduces sustainability requirements for almost all kinds of products placed on the EU market, as well as a digital product passport, and new obligations for the handling of unsold products. For more information on the ESPR, see our blog post. 
• Sustainable finance legislation. Separate rules apply to counter greenwashing risks in the context of financial products and services, including under the Sustainable Finance Disclosure Regulation (“SFDR”)  and the evolving body of ESMA guidance and supervisory activity in this space. For further information on that, see our SFDR Quick Guide. 

Businesses should prepare on several fronts: 

• An appropriate review of all consumer-facing environmental claims and sustainability labels is the essential first step, covering advertising, packaging, product pages, social media and in-store materials (where relevant).
• Each claim should then be assessed against EmpCo’s substantiation requirements: i.e., those that cannot be supported, or that fall within the new blacklist categories, must be modified or withdrawn, with sufficient lead time built in for any physical packaging or labelling changes. 
• EmpCo compliance cuts across multiple functions. Businesses therefore need to bring together legal, marketing, compliance, sustainability, procurement, and product teams to serve as a standing review gate for new claims before publication. 
• New CRD pre-contractual information requirements must be implemented across in-store and online channels, with internal processes reviewed to ensure producer-supplied information is captured and flows through to consumer-facing materials in a timely way. 
• Given the discretion Member States retain in implementing the Directive, businesses operating across multiple EU jurisdictions should track national transposition measures (see our Transposition Tracker).

• Empowering Consumers for the Green Transition Directive 2024 (EmpCo)
• EmpCo Q&As / FAQs (June 2026)
• CPC Network: Common understanding on old stock situations under Directive (EU) 2024/825 on Empowering Consumers for the Green Transition
• European Commission webpage

• Webinar recording: Green claims under scrutiny: What the EU’s Directive on “Empowering Consumers for the Green Transition” means for businesses
• Webinar recording: Financial services focus on the EU's Empowering Consumers for the Green Transition Directive
• The new EU Directive on Empowering Consumers for the Green Transition
• EU: The Directive on Empowering Consumers for the Green Transition – implementation in selected EU member states
• EU Directive on Empowering Consumers for the Green Transition: Commission updates its FAQs
• EmpCo on the horizon: How sports organisations can stay ahead of the game and not fall foul of the new EU rules on greenwashing
• Draft bill: new greenwashing rules in Germany
• France: Paris Judicial Court rules on greenwashing allegations against oil major
• Webinar recording: Greenwashing enforcement trends across the globe: where are we now and where do we go from here?
• Greenwashing collection of materials