EU Empowering consumers directive (EmpCo)

I. Why consumers are distrustful

Sustainable products are booming – yet trust remains scarce. Many consumers approach brands’ environmental claims with skepticism. The EU aims to change this: with the Empowering Consumers Directive (EmpCo, officially Directive (EU) 2024/825), greenwashing will be stopped, transparency increased, and consumers provided with verifiable facts instead of empty marketing promises.

Businesses face a challenge: only credible sustainability claims can turn growing interest into actual purchases.

Overview of the Empowering Consumers Directive (EmpCo)

The EU takes greenwashing seriously and is tightening its rules considerably. The Empowering Consumers Directive is designed to better protect and inform consumers, as well as curb misleading marketing.

The directive updates both existing rules on unfair commercial practices and the Consumer Rights Directive.

It is a central element of the European Green Deal and aims to ensure that consumers receive genuine transparency – rather than empty promises.

The main goal of the EmpCo Directive

The Empowering Consumers Directive has one primary aim: to protect consumers from misleading sustainability advertising. It is designed to ensure that consumers are provided with verifiable facts instead of marketing promises.

Specifically, the directive targets practices that make access to truly sustainable products more difficult. These include planned practices linked to premature product obsolescence, misleading environmental or social claims, and dubious sustainability labels.

In the long term, EmpCo contributes to the EU’s broader goal: by 2050, Europe should become climate-neutral while simultaneously developing an economy that emphasizes the circular economy and genuine sustainability.

When does the EmpCo Directive take effect?

The Empowering Consumers Directive is officially in force: the EU Parliament adopted it on January 17, 2024, the Council of the EU approved it on February 20, and the directive came into effect on March 26, 2024.

For businesses, there is a clear timeline:

• March 27, 2026: All member states must have transposed the requirements into national law.
• September 27, 2026: From this date, the new rules will be binding for all companies.

EmpCo vs. Green Claims Directive: What companies need to know

The Empowering Consumers Directive is only part of the EU strategy against greenwashing. It is intended to be complemented by the planned Green Claims Directive, which would provide detailed rules on substantiating and communicating environmental claims.

Even if the legislative process is delayed, EmpCo already establishes clear rules: misleading environmental claims are prohibited, and companies are responsible for credibly supporting their claims.

Why the Directive is so important for companies

EmpCo brings significant clarity and changes how companies can communicate about sustainability. Marketing statements and products should already be critically reviewed to meet the stricter requirements before 2026.

The directive requires concrete, verifiable plans for all environmental claims and provides for independent third-party verification. Particularly challenging: claims that rely solely on compensation will be prohibited in the future – a real issue for many globally oriented marketing strategies.

Conclusion for companies

Green claims must be clear, fair, and substantiated. Only then can they genuinely help consumers make informed, more sustainable purchasing decisions.

II. Understanding EmpCo

In the green transition, brands face a central challenge: environmental claims must not only be true – they must also be communicated clearly and verifiably. This is precisely where the Empowering Consumers Directive comes into play.

What Is a “Green Claim”?

The directive defines environmental claims very broadly: a Green Claim can be any message or representation that is not legally required – whether under EU or national law. These include, among others:

• Texts: slogans, product descriptions, website content
• Visual elements: photos, infographics
• Graphic elements: logos, symbols, icons
• Symbolic representations: labels, certifications
• Brand elements: brand names, company names, or product names

The key point is that the statement is made in the context of commercial communication and directly or indirectly conveys that a product, product group, brand, or company:

• has a positive or neutral environmental impact,
• is less harmful to the environment than others, or
• has improved its environmental impact over time.

The broad definition covers topics such as climate impact, energy efficiency, circularity, pollution, or biodiversity. So whether a product is called “Green Clean” or a logo claims “Climate Neutral,” the EmpCo Directive applies.

Greenwashing: What it is – and why companies should avoid It

The Empowering Consumers Directive clarifies what greenwashing means: any environmental claim that is inaccurate, unsubstantiated, or unverifiable falls under this category.

And this has consequences – even if a company is genuinely sustainable. If claims or sustainability labels are not carefully documented, they can still be considered greenwashing. Therefore, it is not just the action itself that matters, but also the proof.

Why companies must avoid greenwashing

Greenwashing can have serious consequences even for companies that are truly sustainable – not only legally but also for reputation and trust.

• Legal risks: Misleading environmental advertising can already be treated as a violation of competition law. EmpCo strengthens this protection significantly and introduces “per se” prohibitions – certain practices are automatically considered unfair without the need for a case-by-case review. Competitors and qualified consumer associations can legally challenge violations.
• Sanctions: Even without the still-pending Green Claims Directive, member states must ensure that violations are effectively punished. The direction is clear: engaging in greenwashing risks severe consequences.
• Reputation damage: Even the suspicion of greenwashing can harm a company’s image. According to a NIM survey cited by Handelsblatt, 72 % of respondents avoid companies associated with questionable climate claims. Trust can be lost quickly – and is difficult to regain.

For brands, the takeaway is clear: sustainability must not only be practiced but also communicated transparently and verifiably.

III. What companies will no longer be allowed to do

The Empowering Consumers Directive significantly expands the “blacklist” of unfair commercial practices. Certain claims will automatically be considered unfair – a judicial case-by-case review will no longer be necessary.

General environmental claims

Brands may no longer make blanket statements that a product is “environmentally friendly,” “climate-friendly,” or “energy-efficient” unless an acknowledged, outstanding environmental performance can be demonstrated. Such evidence must be supported by EU legal acts, national or regional eco-labels, or other top-level achievements under EU law. Example: Instead of saying “climate-friendly,” a statement such as “100% of the energy used for this packaging comes from renewable sources” must be specific and verifiable.

Misleading overall claims

Claims about an entire product or company are prohibited if they only refer to a single aspect. Example: A product called “Green Cream” implies environmental friendliness, even though only 30% of the packaging is made from recycled material – this will now be considered misleading.

Compensation claims

Claims such as “climate-neutral” or “CO₂-neutral” are only permitted if the impacts come directly from the product lifecycle or the company’s own value chain. Certificate purchases or external offset projects are not considered equivalent. Investments in environmental projects may be communicated but must be presented transparently and without misleading information.

Misleading product comparisons

Comparisons between products based on ecological or social features must be methodologically well documented. Vague statements such as “Uses less water than other products!” without explaining the comparison method will no longer be allowed.

Self-evident statements

Legally required standards may not be advertised as a special advantage. Example: A “30% recycled content” that is already mandatory cannot be used as a selling point.

Fictitious sustainability labels

Self-created labels without external certification are prohibited. Only labels from public authorities or based on verified certification systems may be used. Such systems must be transparent, fair, and objectively controlled, with clear rules in case of violations.

Claims about future environmental performance

Future promises like “climate-neutral by 2030” are only allowed if based on clear, verifiable commitments. Companies must provide a detailed implementation plan including measurable targets, financial resources, technological developments, and independent verification. Mere declarations of intent are insufficient.

Conclusion

The EmpCo Directive requires precise, verifiable, and transparent green claims. Companies must plan strategically and ensure that their sustainability communication is both credible and legally secure.

IV. Additional consumer protection measures

The Empowering Consumers Directive goes beyond environmental claims. It strengthens consumer protection, information, transparency, and fairness in key areas, enabling more informed purchasing decisions.

Durability and repairability

The directive takes a clear stance against practices that make products obsolete faster or hinder repairs – both to protect consumers and reduce unnecessary environmental impact.

• Practices related to planned premature obsolescence: Companies have new obligations regarding products that may be subject to premature obsolescence. Example: Businesses must not encourage consumers to replace consumables before it is technically necessary.
• Obligation to inform about software updates: Consumers must be informed in advance about updates that negatively affect the use of products with digital components, such as shorter battery life or slower performance. Updates must not be advertised as “necessary” if they only introduce new features.
• Repairability and spare parts: False claims about repairability are prohibited. Manufacturers must provide available information on spare parts, costs, ordering procedures, repair manuals, and any limitations.

Clarity before purchase

The directive ensures that consumers receive all relevant information before buying:

• Legal warranty: Consumers must be informed in a standardized way about the minimum two-year EU-wide warranty.
• Durability guarantees beyond two years: Commercial guarantees must be clearly indicated with a standardized EU label.
• Software updates: Manufacturers must specify the minimum period for providing software and security updates.
• Environmentally friendly delivery options: Companies are required to provide information on sustainable shipping methods, such as cargo bikes, electric vehicles, or consolidated shipping.

Conclusion

EmpCo strengthens consumer protection not only regarding green claims but also ensures that consumers can purchase products that are more durable, repairable, and transparent in their performance.

V. National Guidelines on Environmental Claims

Below is a (non-exhaustive) list of national guidelines on environmental claims (within the framework of Directive 2005/29/EC).