Don't get caught out: preparing your green advertising for the EU's new rules against greenwashing

We have just reported that the EU Commission has published new FAQs on Directive (EU) 2024/825 on the empowerment of consumers (the "EmpCo Directive"; click here to read our article on the FAQs). But what exactly will the EmpCo Directive change with regard to green advertising, what do we know about its transposition, and why were FAQs needed before this new regime is even applicable? And what happened to the proposed Green Claims Directive that attracted so much attention before seemingly falling off the radar?

We are here to provide you with an update on what you need to know today if you want to communicate your company's environmental performance in the future – and to remind you that the time to get "EmpCo-fit" is now. We will also be holding a Client Breakfast on 11 March 2026 to share further details and insights.

Where we stand in the legislative process

Today, most advertisers are aware that claims such as "green", "sustainable" or "carbon neutral" carry legal risks – not least because there have been a number of high-profile court cases involving advertisements using such claims. Perhaps most famously, in 2024 the German Federal Court of Justice ruled that the use of the claim "climate-neutral" by the German confectioner Katjes was misleading advertising because the advertisement itself did not explain its specific meaning (click here to read our article on the Katjes case).

However, it is not just the courts who have been active in the fight against greenwashing. In parallel, the EU Commission has tackled greenwashing through two legislative initiatives: 

• the Empowerment of Consumers Directive (proposed March 2022); and
• the Green Claims Directive (proposed March 2023).

Unlike the Green Claims Directive, which lacks majority support and may never become law, the EmpCo Directive has already entered into force and will apply from 27 September 2026. Member States must transpose the EmpCo Directive into national law by 27 March 2026. While several countries have already completed this process (or are close to doing so), the Austrian government has yet to present a draft implementation.

The pending implementation of the EmpCo Directive does not alter the fact that the new rules will soon apply. For now, Austrian companies and companies from other countries without transposition must therefore rely directly on the Directive itself for guidance. And while some may consider it "soft" compared to the Green Claims Directive – which would have introduced mandatory ex-ante verification for explicit environmental claims, among other measures – the EmpCo Directive will nonetheless have a significant impact on green advertising.

How the EmpCo Directive interacts with the current misleading advertising framework

As mentioned above, the EmpCo Directive builds upon the existing framework of the UCP Directive. On the one hand, it amends the general provisions on misleading acts (Article 6) and omissions (Article 7), which require case-by-case assessment. On the other hand, and perhaps more significantly, it introduces numerous per se prohibitions to the "blacklist" of practices deemed unfair under all circumstances. These new bans specifically target misleading environmental claims, non-transparent sustainability labels and practices related to premature obsolescence.

Like the current provisions of the UCP Directive, the new rules introduced by the EmpCo Directive apply exclusively to B2C relationships. However, national legislators retain the discretion to extend the Directive's scope to B2B contexts. For Austria, it remains to be seen whether the Austrian legislator will confine implementation to the B2C level or also extend it to B2B relationships, as was previously the case with the UCP Directive.

What the new rules mean for green advertising in practice

Environmental claims and sustainability labels constitute the primary focus of the EmpCo Directive. Consequently, the new provisions will have practical implications for all businesses that communicate their environmental achievements to customers – whether they have positioned themselves with a distinct "green image" or simply draw upon annual sustainability reports or mandatory disclosure requirements in their voluntary advertising.

But which forms of green advertising are specifically targeted? The new provisions introduced by the EmpCo Directive go considerably further than the general ban on misleading advertising already in place under the current UCP Directive.

Perhaps most notably, the Directive contains four "absolute" bans targeting specific yet well-established forms of green advertising. Among others, using generic environmental claims such as "environmentally friendly", "eco-friendly", "green", "nature's friend", "ecological", "environmentally correct", "climate friendly", "gentle on the environment", "carbon friendly", "energy efficient", "biodegradable" or "biobased" will soon be classified as unfair under all circumstances. Advertisers who wish to continue using such claims will either need to provide further specification or be able to demonstrate that their generic claims are based on a recognised excellent environmental performance, such as the EU Ecolabel.

In addition to these "absolute" bans, which are added to the "blacklist" of the UCP Directive, the EmpCo Directive also includes a provision on environmental claims regarding future improvements (e.g. "We will reduce our ecological footprint by 2030"). Subject to a case-by-case assessment, such claims will be considered misleading unless supported by a detailed and realistic implementation plan.

You're invited: Preparing for the EmpCo Directive – Client Breakfast, 11 March 2026

As the implementation deadline approaches, businesses should take stock of their environmental marketing and product information practices to ensure they are "EmpCo-fit" by September 2026. Importantly, companies should also consider the potential impact on their trademark portfolios, as the new provisions may affect trademarks containing environmental claims or imagery (click here to read our article on the potential effects on trademarks).

Our Schoenherr expert Antonia Hirsch will speak at our Client Breakfast on 11 March 2026, where she will outline key practical implications for advertisers and offer a framework for effective preparation. She will be joined by Mag. Günter Thumser, Managing Director of the Austrian Branded Goods Association, who will contribute additional insights on green advertising (click here to read more about the event). 

author: Antonia Hirsch