What Is the EmpCo Directive? An Overview for Businesses

The EmpCo Directive – formally Directive (EU) 2024/825 on "Empowering Consumers for the Green Transition" (hence the shorthand EmpCo) – is a central element of EU consumer policy. It amends two existing frameworks: the Unfair Commercial Practices Directive (2005/29/EC) and the Consumer Rights Directive (2011/83/EU). The goal is to curb misleading environmental advertising – often called "greenwashing" – and to give consumers more reliable information.

Why was the EmpCo Directive introduced?

The EU legislator justifies the Directive by noting that environmental claims in advertising have increased sharply, yet many are vague, unsubstantiated or simply false. Consumers can rarely verify whether a product marketed as "green" actually offers benefits. This hampers informed purchasing decisions and disadvantages businesses that genuinely invest in sustainability. The Directive therefore aims to establish uniform minimum standards for environmental claims and sustainability labels.

When does the EmpCo Directive apply?

The Directive entered into force on 26 March 2024. Member states had to transpose it into national law by 27 March 2026. The new rules apply from 27 September 2026. In Germany, transposition takes place in particular through the Third UWG Amendment Act (BGBl. 2026 I No. 43), which incorporates the requirements into the Act against Unfair Competition (UWG).

Important: the EmpCo Directive is a directive, not a directly applicable regulation. Its concrete design – for instance competences, penalty levels and procedures – may differ between member states. Anyone advertising in several EU countries should check the respective national implementation.

Which four prohibitions are at the centre?

The Directive adds to the "blacklist" of always-prohibited commercial practices. Four points are especially relevant in practice:

1. Generic environmental claims without evidence. General terms such as "environmentally friendly", "green", "eco" or "sustainable" are problematic where no recognised, excellent environmental performance can be demonstrated. A mere assertion is not enough.

2. Claims about the whole product when only one aspect is concerned. If a product is presented as environmentally friendly although the benefit relates only to a component or a single life-cycle stage, this can be misleading.

3. Climate-neutrality claims based on offsetting. Statements such as "climate neutral" or "CO₂ neutral" that essentially rely on offsetting emissions must be assessed critically.

4. Sustainability labels without a recognised basis. Labels that are not based on a publicly recognised or certification-based scheme are considered risky.

These points are not an exhaustive list. The Directive also sharpens further rules, for example on claims about future environmental performance and on comparisons.

What does this mean for advertising practice?

Businesses are well advised to take a risk-oriented view rather than reacting with blanket fear. Not every environmental claim is impermissible – what matters is whether it is specific, verifiable and correctly framed. Sensible steps include:

• taking stock of all environmental claims on the website, packaging and in campaigns;
• assigning evidence to every claim (studies, certificates, measurement data);
• replacing vague terms with concrete, verifiable statements;
• critically reviewing labels and climate-neutrality claims.

What further changes does the Directive bring?

Beyond the four central prohibitions, the Directive contains further points that may become relevant in practice:

• Claims about future environmental performance. Advertising promises about future targets – such as an intended climate neutrality by a certain year – should only be permissible where they rest on clear, verifiable commitments and a traceable implementation plan. Mere declarations of intent without concrete interim steps are risky.
• Transparent comparisons. Comparative environmental claims require traceable information on the method, the data basis and the reference point.
• Consumer information on durability and reparability. Because the Directive also amends the Consumer Rights Directive, information on durability, reparability and – for products with digital elements – software updates comes into sharper focus. The aim is to avoid premature obsolescence and misleading durability promises.

This list is not exhaustive. The precise reach of individual requirements depends on national implementation and on further interpretation by authorities and courts.

How should businesses proceed now?

Since application is scheduled from 27 September 2026, there is time for orderly preparation. A pragmatic path is to first review highly visible and higher-risk claims – such as climate-neutrality statements and generic sustainability terms – and then systematically address the remaining communication. In legally uncertain cases, an individual review by a lawyer is advisable, especially for cross-border advertising.

The EmpCo Directive marks a shift from self-declaration towards a duty of evidence: those who advertise environmental benefits should be able to prove them. For companies with substantial sustainability performance this can even be an advantage, because unsubstantiated competitor claims lose ground.