Now it's getting serious: EmpCo directive against greenwashing implemented in German Unfair Competition Act

What you need to know now to avoid drastic consequences from September 2026 on!

With the long-awaited publication of the third amendment to the German Unfair Competition Act (“UWG”) in the Federal Law Gazette on February 19, 2026, the concrete implementation of the EU directive “Empowering Consumers for the Green Transition” (EmpCo) has been finalized. It significantly tightens competition law standards for sustainability communication and environmental advertising. Anyone who wants to continue to operate risk-free on the market after it comes into force on September 27, 2026, should take action now at the latest.

New requirements for sustainability communication & sustainability labels

The EU directive and the new UWG are intended to enable consumers to make more informed, sustainable decisions. The EU is thus picking up the fight against greenwashing. This affects everyone who participates in the market and communicates towards consumers. In Germany, the “black list” of the UWG has been supplemented with further per se prohibitions.

The following will be prohibited in the future:

• Sustainability advertising without sufficient explanation (“generic environmental claims”)
• Untrue statements about the scope of an environmental claim (“product, company, or just a part of the product?”)
• Environmental claims based solely on compensation measures for greenhouse gas emissions (e.g., “climate neutral” or “reduced carbon footprint”)
• Use of sustainability labels without a compliant certification scheme with a third-party monitoring body – this includes all trust marks, quality marks, or equivalent, i.e., basically anything that could be perceived as a label in any way
• Presentation of legal requirements as a special feature
• Misleading information about software updates, durability, and reparability

Greenwashing, which since the Federal Court of Justice's “climate-neutral” ruling at the latest can lead to serious consequences – essentially a sales ban – will be targeted even more vigorously. The list of other “important product features” in the UWG is also being expanded. In the future, “social washing” and “repairability washing” are also likely to be the focus of consumer and competition associations as well as competitors. Other new features include various pre-contractual information requirements regarding durability, repairability, software updates, and sustainable delivery options, as well as the harmonization of warranty and guarantee labels. Advertising with future environmental performance, e.g., climate targets, will also only be permitted with a verifiable concrete implementation plan and budget commitments.

Urgent need for action for all market participants

The new UWG will apply without exception from September 27, 2026, and does not provide for a transition period or a grace period for products already manufactured. Products and marketing materials that do not comply with the standards are likely to be subject to warning letters and injunctions. There is a risk that goods that do not comply with the law will be unmarketable. Fines are also possible for widespread violations, not to mention the risk of reputational damage.

How companies can best prepare

Even though the transition to the new UWG often requires considerable time, it is not too late to review your own brand, product, and marketing portfolio for compliance. The following should be critically examined in particular:

• advertising statements, online presence, and marketing material
• (product) packaging
• possible sustainability labels – i.e., anything that resembles a label

If relevant or problematic elements are discovered, changes should be initiated immediately. If adaptation is no longer possible, e.g., due to large quantities of old stock, a legally reviewed strategy for minimizing risks and losses should be pursued.

We would be happy to support you in the timely and rapid implementation of the new UWG and help you communicate your commitment to sustainability in a legally compliant manner in the future.