On 17 January 2024, the European Parliament approved the text for a new European Union directive aimed at ‘empowering consumers for the green transition’ by banning the use of certain unsubstantiated generic environmental claims in the EU, such as ‘environmentally friendly’, as well as claims such as ‘climate neutral’ based on emissions offsetting schemes. It also regulates the use of sustainability labels and bans certain practices associated with early obsolescence of consumer products.
This new directive forms part of a much larger EU package of measures, which includes the Ecodesign for Sustainable Products Regulation, the proposed Green Claims Directive and the Right to Repair Directive. The new directive will take effect by amending the current text of the EU Unfair Commercial Practices Directive and Consumer Rights Directive.
Key reforms of the directive include:
- A ban on the use of unsubstantiated generic environmental claims such as ‘environmentally friendly’, ‘natural’, ‘biodegradable’ and ‘eco’.
- A ban on the use of claims such as ‘climate neutral’ that suggest that a product has a neutral, reduced or positive impact on the environment because of emissions offsetting schemes.
- Regulated use of sustainability labels, given the confusion caused by their proliferation and lack of suitable comparator data – under the new rules, only sustainability labels based on official certification schemes or established by public authorities will be allowed in the EU.
- A new harmonised label will be created for producers that wish to highlight that they are offering – free of charge – an extended guarantee that goes beyond the two-year EU minimum.
- A ban on practices associated with early obsolescence of goods, such as:
- Making unfounded durability claims (for example, claims that a product will last longer than it will, if this is not true under normal conditions).
- Presenting software updates as necessary when they only enhance functionality.
- Presenting goods as repairable when they are not.
- Inducing consumers to replace consumables earlier than necessary for technical reasons.
- Withholding information on the impairment of the functionality of a good when consumables, spare parts or accessories not supplied by the original producer are used, or falsely claiming that such impairment will happen.
Next steps
The new directive now needs to receive final approval from the EU Council, after which it will be published in the Official Journal of the EU. After the directive’s entry into force, EU member states will have two years to transpose it into their national laws, during which time businesses can adapt their environmental claims.
