11 December 2025
newsletter
austria
More than just a trademark? How the EmpCo Directive could affect brands and labels
By 27 September 2026, companies will have to comply with the stricter rules on environmental advertising introduced by the Directive (EU) 2024/825 on the empowerment of consumers ("EmpCo Directive" or "ECGT Directive"). With the various casuistic prohibitions that will be incorporated into the Unfair Commercial Practices Directive, it may be difficult for advertisers to keep track of what is expected of them under this new regime. In particular, it is often overlooked that not only advertisements, slogans and packaging, but also trademarks may fall within the scope of the EmpCo Directive.
In what should be seen as a wake-up call for advertisers, the European Commission has now explicitly addressed the issue of brand names and labels in its recently published non-binding answers to frequently asked questions from stakeholders related to the EmpCo Directive. But what are the implications of labels, brand names, company names or product names being covered by the new definition of an "environmental claim"?
Which trademarks may require review?
For brand owners, the most significant new provision is likely to be the ban on generic environmental claims. As the Commission has now clarified, brands and labels may fall within the scope of this ban irrespective of their protection under intellectual property law. In essence, this means that brand owners whose trademarks contain terms such as "green", "eco", "natural" or "climate neutral" in a manner likely to evoke environmental associations in the consumer's mind may be affected. In such cases, brand owners will be required to clearly and prominently state the environmental claim contained in the trademark in the same medium or to demonstrate recognised environmental excellence.
Other brands and labels that might be affected are:
- brands and labels using the terms "climate neutral" or "CO₂ neutral" in the context of offsetting or compensation measures;
- brands and labels that include claims about an entire product (or business operation) when the actual benefit relates only to a specific aspect of the company's product or business;
- brands and labels that fall under the new definition of "sustainability labels" but are not based on a certification scheme or established by public authorities.
Looking ahead
With the stricter regulation coming into force soon, companies are well advised to review their brand portfolio for potential environmental claims. Failure to do so could not only put them at risk of running afoul of unfair competition law but may also result in the refusal or invalidation of their trademarks.
author: Antonia Hirsch
Antonia
Hirsch
Associate
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