Germany recently adopted new amendments to its unfair competition laws focused on greenwashing. The amendments cover a wide variety of issues, including new statutory definitions and broadening the scope of misleading commercial practices. Notably, the law also bans certain sustainable marketing practices outright, including carbon offset-based neutrality claims. A recent Gibson Dunn memo provides details on the new banned practices:
“The UWG’s list of per se prohibited commercial practices (the so-called “black list”, Section 3(3) UWG) is expanded. The following practices will be unlawful irrespective of their actual impact:
- Unsubstantiated generic environmental claims: Claims such as “eco-friendly”, “green” or “climate-friendly” are prohibited unless they can be substantiated by “recognized excellent environmental performance”, i.e. top-tier performance evidenced by EU ecolabels or equivalent best-in-class ratings under EU law, such as an energy class A rating.
- Unauthorized sustainability labels: The use of sustainability labels is prohibited unless they are based on a recognized certification scheme or established by a public authority, for example the EU Ecolabel as established through Regulation (EC) No. 66/2010.
- Carbon offset-based claims: Claims suggesting that a product has a neutral, reduced or positive environmental impact based on greenhouse gas offsetting are prohibited.”
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