Directive 2024/825 has arrived to change the rules of the game in terms of sustainable consumption. This law, published on 6 March 2024, has a clear objective: to protect European consumers from greenwashing and provide them with tools to make more informed purchasing decisions.
Below, we explain what this Directive entails, who it affects, and why it is key for companies, lawyers, and consumers.
What is Directive (EU) 2024/825?
The proliferation of environmental claims in the market—many of them vague, misleading or outright false—has generated considerable distrust among consumers and made it harder to make genuinely sustainable purchasing decisions. In this context, Directive (EU) 2024/825 pursues several interconnected objectives.
Directive (EU) 2024/825 amends two key European directives: the Unfair Commercial Practices Directive (2005/29/EC) and the Consumer Rights Directive (2011/83/EU). It has a dual purpose:
- To combat greenwashing, that is, vague or misleading environmental claims used by many companies to improve their image.
- To empower consumers by providing clear, verifiable, and useful information about the durability, repairability, and real sustainability of products.
What is greenwashing and why is it banned by this Directive?
Greenwashing consists of conveying to consumers an environmentally-friendly image without any objective basis to support it. It is an unfair commercial practice because it misleads consumers about the ecological characteristics of a product and harms both consumers and companies that genuinely comply with real sustainability standards.
As a result, Directive (EU) 2024/825 includes this practice in the blacklist of prohibited commercial practices. Once transposed into national legal systems, claims such as “100% organic,” “carbon neutral,” or “sustainable product” must be accompanied by scientific, verifiable, and easily accessible evidence.
💡In other words: it will no longer be legal to use expressions like “100% green” or “planet-friendly” if they cannot be objectively proven.
Who is affected by Directive (EU) 2024/825?
Directive (EU) 2024/825 has a broad scope and affects both the private and public sectors. Its provisions directly impact:
- Companies selling products or services to consumers within the European Union, whether through physical stores or e-commerce. These companies will have to review their commercial practices to ensure transparency and avoid misleading or inaccurate advertising claims.
- E-commerce platforms and marketplaces, which will be required to ensure that the information provided to consumers is truthful, clear, and verifiable. The Directive reinforces their responsibility as digital intermediaries.
- Consumers across the EU, who will benefit from greater protection against unfair commercial practices, including greenwashing, manipulated reviews, and opaque marketing strategies.
- Public entities, especially consumer protection authorities, market surveillance bodies, and inspection agencies, which must implement and enforce the new rules. It also affects public administrations that design sustainability policies, green public procurement, and market monitoring.
Which sectors are most exposed to greenwashing risks?
Some sectors are more exposed to legal and reputational risks, particularly:
- Retail and e-commerce: heavy use of environmental claims on labels, product sheets, and online marketing.
- Fashion and textiles: frequent use of terms like “eco,” “sustainable,” or “recycled fabrics” without technical backing.
- Cosmetics and personal care products: references to natural or toxin-free ingredients without valid certification.
- Appliances and technology: claims regarding energy efficiency or durability not verified by independent testing.
Recommendations for companies: complying with Directive (EU) 2024/825
With the entry into force of Directive (EU) 2024/825 on environmental claims and the fight against greenwashing, companies operating in the EU market must adopt a new legal approach. Non-compliance with this regulation may result in administrative sanctions, legal actions by consumers, and interventions by national consumer protection authorities. Our recommendations:
- Audit all environmental claims included in catalogues, websites, labels, packaging, and marketing campaigns. These statements must be verifiable, scientifically grounded, and documented.
- Avoid using generic or vague terms such as “environmentally friendly,” “sustainable,” “eco-friendly,” or “carbon neutral” unless you have verifiable evidence and recognized certifications to support such claims. Lack of rigor may be considered misleading commercial practice.
- Review and update internal communication, advertising, and marketing policies to ensure consistency with the new legal requirements. Alignment between what is communicated and what can be proven will be key to avoiding legal risks.
- Train internal teams (marketing, communication, legal, and compliance) on the requirements of Directive (EU) 2024/825. It is essential to understand specific prohibitions, such as the misuse of sustainability labels, unsupported environmental comparisons, or non-existent certifications.
- Consult with a lawyer specialized in European consumer law, environmental regulation, and ESG, such as the Arthur & Marin team, to review your contracts, advertising strategies, corporate documentation, and supplier relationships.
Impact of Directive (EU) 2024/825 on Public Administrations
Although Directive (EU) 2024/825 primarily targets private economic operators, it also has direct and indirect impacts on national, regional, and local public administrations. Their role as regulators, contractors, and issuers of institutional communication places them in a key position to ensure compliance with this new EU law against greenwashing.
Transposition and regulatory oversight
Member States must transpose Directive (EU) 2024/825 by 27 March 2026. In addition, consumer protection authorities and regional supervisory bodies will need to strengthen their inspection procedures, with the capacity to penalize misleading environmental claims in products, services, or public campaigns.
Public procurement and use of certifications
In the area of public procurement, the Directive requires that administrations:
- Avoid awarding contracts to suppliers engaged in greenwashing.
- Avoid awarding contracts to suppliers using environmental labels or certifications misleadingly or without external validation.
- Verify that environmental claims are supported by recognized certificates (e.g., EU Ecolabel, EMAS, FSC, etc.).
- Introduce clear criteria in tender specifications regarding the responsible use of labels, certifications, and environmental statements.
This requires legal and technical training, as well as a thorough review of procurement documentation.
Institutional communication free from Greenwashing
Institutional communication will also be subject to the prohibitions established by Directive (EU) 2024/825. Public administrations may not use expressions such as “carbon neutral” or “environmentally friendly” without scientific and verifiable basis. This affects public campaigns, labelling of institutional products, and environmental awareness messages.
Penalties and legal risks for non-compliance with Directive (EU) 2024/825
Failure to comply with Directive (EU) 2024/825, once transposed into national law, entails significant legal, financial, and reputational penalties for companies. This EU regulation reinforces the fight against greenwashing and mandates that all environmental claims (green claims) be verifiable, accurate, and supported by scientific evidence.
Administrative fines for Greenwashing
Consumer and competition authorities may impose significant fines on companies that use false, vague, or unjustified environmental claims. Financial penalties may escalate depending on the company’s turnover, the number of consumers affected, or the repetition of the unlawful conduct.
Civil liability and collective actions
The use of misleading green claims may also lead to civil liability lawsuits by individual consumers, consumer and user associations, and environmental defence platforms.
These claims may include refunds of the price paid for the product or service, compensation for damages (including moral damages), or collective actions for cessation, redress, and compensation, in accordance with Directive (EU) 2020/1828 on the protection of the collective interests of consumers.
Reputational damage and loss of competitiveness
Beyond legal consequences, the improper use of environmental claims may trigger a reputational crisis for the brand. Reputational consequences include:
- Loss of consumer trust
- Negative social media campaigns
- Drop in competitive positioning, especially in sectors sensitive to sustainability such as: food and beverages, cosmetics, fashion, and retail.
Complementary legislation to the greenwashing Directive
Directive (EU) 2024/825 is an important component of the European Green Deal and the EU’s circular economy strategy. It is expected to have a significant impact on companies’ marketing and communication practices, promoting greater transparency and accountability.
It is important to highlight that this Directive will be complemented by the future Green Claims Directive, which will set more detailed requirements for the justification and communication of explicit environmental claims and the functioning of environmental labelling systems.
Whereas Directive (EU) 2024/825 focuses on unfair commercial practices and consumer information, the future Green Claims Directive will go deeper into the methodology and verification of such claims.
Ready to comply with Directive (EU) 2024/825 on greenwashing?
At Arthur & Marin, specialists in European Union Law and Regulatory Law, we help you review your environmental claims, adapt your commercial strategy, and strengthen your legal certainty in light of this new European regulatory framework. We offer legal reports in European Law.
🔎 Request a personalized legal consultation and ensure compliance with the greenwashing Directive and its new legal requirements.
📩 Write to us today at info@arthurmarin.com or call us at +32 465 345 345, and protect your administration or company from legal risks, fines, and reputational damage.
🔐 We are ready to protect your business or public entity against the new legal risks of greenwashing.
