Consumer protection

Greenwashing: the EU changes the rules – product sustainability must always be demonstrated

New EU rules on unfair commercial practices come into force on 27 September: to claim to be ‘green’, companies will have to prove it

 (AdobeStock)

4' min read

Translated by AI
Versione italiana

4' min read

Translated by AI
Versione italiana

Simply claiming that a product is ‘green’, ‘eco-friendly’ or ‘carbon neutral’ will no longer be enough. In order to demonstrate their sustainability, companies will have to show that they use robust, scientifically sound and verifiable methods. Put simply, to claim to be eco-friendly , you must actually be so and be able to prove it.

The new rules introduced by Brussels should come as no surprise to businesses: EU Directive 2024/825 against greenwashing – already familiar to industry insiders – stipulated from the outset that the regulation would come into force on 27 September 2026. In Italia, the transposition came at the very last minute, in March this year, via Legislative Decree 30/2026. Since then, trade associations have urged those affected to comply as soon as possible to avoid being caught unprepared.

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What does the directive require?

But what, in practical terms, will change? First and foremost, a proper ‘blacklist’ is being drawn up of commercial practices that are always considered unfair and are therefore prohibited, including:

  • the use of generic claims regarding sustainability without being able to demonstrate recognised excellence in environmental performance. For example, it will not be permissible to present an entire product as generically sustainable when the stated environmental benefit relates only to one of its components, such as the use of recycled material in a single part;
  • the use of self-certified or self-declared labels by the company. A sustainability label may not be displayed on the product unless it is based on a system of third-party and independent certification or has been established by public authorities;
  • claiming that a product has a neutral, reduced or positive impact on the environment in terms of CO₂ emissions (“carbon neutral”, “zero emissions”, ‘reduced CO₂ footprint’) based on the offsetting of greenhouse gases through carbon credits outside the product’s value chain;
  • to present, as a distinctive feature of the product, characteristics that are already required by law for all products in that specific category on the EU market.

In this way, the EU aims to ensure fair competition for those companies that make tangible investments in improving their production processes, and to enable consumers to make informed choices by identifying products that have a genuine positive impact on the environment.

Cases of uncertainty

However, there remain certain practices which, according to the legislation itself, will have to be assessed on a ‘case-by-case’ basis by the Court of Justice. For example, in the case of claims such as ‘this packaging contains 50 per cent recycled plastic’: this is not prohibited, but it must be verified whether it is true, verifiable, sufficiently precise and whether the way in which it is presented does not mislead the consumer. The same applies to images, colours, symbols and graphic presentation.

This is no trivial matter: the new rules cover all communication relating to the product – whether a good or a service – from packaging and advertising across various media right through to its presentation on the shelf. The penalties provided for under the Consumer Code can amount to as much as 10 million euros, but as highlighted in Assonime Circular 14/2026, the risks could also stem from ‘potential individual and collective claims for damages, competition law disputes and significant reputational damage’.

Current stock

Hence the interest among businesses in taking pre-emptive action. To reduce uncertainty, in June the European Commission published a series of FAQs to clarify the practical application of the directive. At the same time, the Consumer Protection Cooperation Network (CPC), the European network of national consumer protection authorities, has outlined a common course of action for managing existing stock. This is, in fact, the most critical issue for companies: packaging that has been manufactured, ordered, distributed or is already on the shelves, which must be brought into compliance before 27 September.

“Product turnover and time-to-market, packaging production cycles and the structure of supply chains can make it difficult to adapt quickly and result in significant costs,” explains Confindustria. “ “In some cases, overly strict enforcement could lead to the recall or destruction of products or packaging that are still usable, with economic and environmental consequences that are inconsistent with the objectives of the regulations.”

The authorities’ positions, as well as the initial guidance issued by the Ministry of Enterprise and Made in Italy (Mimit), nevertheless envisage a gradual and proportionate approach during the initial phase of implementation. Factors such as stock levels, packaging production cycles, orders already placed, dependencies within the supply chain, the product’s shelf life and the technical feasibility of the necessary adjustments. The size and resources of the company, as well as the concrete efforts made in good faith, will also be taken into account.

The AGCM (Italian Competition and Market Authority), which has been tasked with carrying out these checks, pointed out that there is already a significant body of case law in Italia on green claims and that the application of the new provisions is set to further expand this body of case law, particularly with regard to the interpretation of general clauses.

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Collateral impacts

The legislation is not limited to climate issues, but refers to sustainability in a general sense, covering both environmental and social aspects. This aspect has a direct impact on charities. “When third-sector organisations distribute products – whether they do so themselves or through a company – they must be precise,” explains Carlo Mazzini, an expert in charity law. Care must also be taken with the contractual terms: if the company I’m working with fails to comply with this legislation, the agreement falls through, because the damage to reputation also affects the Third Sector organisations.”

Then there is the issue of suppliers: although the directive formally applies to commercial communications directed at consumers (B2C) and does not directly regulate business-to-business (B2B) relations, in practice it also affects the entire supply chain. It is, in fact, the responsibility of the company making the sustainability claim to request and collect from its upstream suppliers all the certifications, life cycle assessments (LCAs) and technical data that demonstrate the accuracy of its claims.

Furthermore, information regarding the social characteristics of a product (such as working conditions and safety, fair pay, respect for human rights and animal welfare) must be accurate and cover the entire life cycle and the whole value chain.

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