CCRcorp Sites  

The CCRcorp Network unlocks access to a world of insights, research, guides and information in a range of specialty areas.

Our Sites

TheCorporateCounsel

TheCorporateCounsel.net

A basis for research and practical guidance focusing on federal securities laws, compliance & corporate governance.

DealLawyers

DealLawyers.com

An educational service that provides practical guidance on legal issues involving public and private mergers & acquisitions, joint ventures, private equity – and much more.

CompensationStandards

CompensationStandards.com

The “one stop” resource for information about responsible executive compensation practices & disclosure.

Section16.net

Section16.net

Widely recognized as the premier online research platform providing practical guidance on issues involving Section 16 of the Securities Exchange Act of 1934 and all of its related rules.

PracticalESG

PracticalESG.com

Keeping you in-the-know on environmental, social and governance developments

A key piece of anti-greenwashing legislation entered into force last month in the EU. The Directive to Empower Consumers for the Green Transition (Empowering Consumer Directive) cracks down on how companies can make sustainability claims.  Where most greenwashing regulation is principles-based, the Empowering Consumer Directive is more prescriptive. Under this law, certain marketing practices are banned outright. A recent Bird & Bird memo provides a list of the banned practices:

  • “displaying a sustainability label that is not based on a certification scheme or has not been established by a public authority;
  • making a general environmental claim while being unable to demonstrate a recognised, excellent environmental performance to substantiate that claim;
  • asserting that a product has a neutral, reduced, or positive impact on the environment in terms of greenhouse gas emissions;
  • presenting requirements mandated by EU or national law as a distinguishing feature of the business’s offering;
  • representing a software update as necessary when it only improves functional features;
  • presenting goods as repairable while they are not in fact; and
  • encouraging consumers to replace or refill consumables earlier than is technically necessary.”

As of September 27, 2026, these new rules are in full effect. Those marketing products in the EU should audit their marketing and labeling practices to ensure compliance. These rules apply to all products currently on the market, even those manufactured before the law’s effective date.

Many industries believed the outright ban on carbon neutral/positive claims was too restrictive. However, given the sub-par state of carbon offsets and the difficulty and complexity involved in validating neutrality claims, the EU opted to ban them outright. It will be interesting to see how the Empowering Consumers Directive impacts our globalized economy. Apple already changed its global package for Apple Watches in anticipation of this law. We’ll see what other firms alter their practices globally to avoid piecemeal compliance.

Our members can learn more about greenwashing regulation here.

Back to all blogs

The Editor

Zachary Barlow is a licensed attorney. He earned his JD from the University of Mississippi and has a bachelor’s in Public Policy Leadership. He practiced law at a mid-size firm and handled a wide variety of cases. During this time he assisted in overseeing compliance of a public entity and litigated contract disputes, gaining experience both in and outside of the courtroom. Zachary currently assists the PracticalESG.com editorial team by providing research and creating content on a spectrum of ESG… View Profile