Courts already setting a high bar

This is reflected, for example, in a recent decision of the German Regional Court of Bochum (19 O 24/25) concerning green claims in online advertising. The court held that advertising “CO2-neutral shipping” is misleading where the underlying shipping service is in fact only CO2-reduced. As “CO2-reduced” only suggests a decrease in emissions, “CO2-neutral” conveys a significantly stronger environmental claim. The court also emphasised that what matters is the specific statement used in the advertising, not whether consumers may generally understand that transport services are not entirely emission-free. The decision follows the line of the German Federal Court of Justice’s case law on claims such as “climate neutral”, confirming that environmental claims must be accurate, clear and sufficiently explained in the advertising itself.

The Regional Court applied the same approach to the broader claim “sustainable & regional”. The court held that such wording is too vague and open-ended unless the advertisement itself clearly explains what aspects of the product or business are considered sustainable and in what sense they are regional. General references to circular economy, sustainable processes or local operations were considered insufficient, particularly where the business operated a nationwide online shop. According to the court, consumers must be able to understand directly from the advertising itself what specific environmental or regional qualities are being claimed and what factual basis these claims rely on.

These developments show that German courts already apply a strict standard to green claims under the existing rules on misleading commercial practices. The upcoming reform of the German Act Against Unfair Competition (UWG) to implement the EmpCo Directive ((EU) 2024/825) builds on this approach but introduces a more specific regulatory framework for environmental claims and sustainability labels. The new rules take effect on 27 September 2026, giving businesses a defined but limited window to review and adapt their marketing communications.

What the reform requires

The reform proceeds from the recognition that environmental messaging can significantly influence consumer choices. Where such claims are broad or unsubstantiated, they risk creating misleading impressions. The new rules therefore aim to enhance transparency and support better-informed purchasing decisions.

Substantively, the reform focuses in particular on environmental claims and sustainability labels. General environmental claims such as “green”, “environmentally friendly” or “sustainable” will be subject to stricter scrutiny. Such broad statements will generally only be permissible where they can be substantiated by recognised excellent environmental performance or where the relevant explanation is clearly provided in the same medium. The same applies to claims regarding future environmental performance. In particular, forward-looking claims (such as net-zero pledges or carbon-reduction targets) will require a sufficiently detailed, realistic and verifiable implementation plan, including measurable and time-bound commitments.

In addition, the blacklist of prohibited commercial practices is expanded with effect from 27 September 2026. The new rules strictly ban generic environmental claims without substantiation; outlaw product advertising based solely on the offsetting of greenhouse gas emissions and prohibit the use of sustainability labels that are not based on a recognised certification scheme or established by a public authority. Companies should therefore review their product communication, packaging, labels and marketing materials without delay. Green claims remain possible, but they will need to be concrete, substantiated and supported by a sound factual and legal basis.

What businesses should do now

With the new rules taking effect on 27 September 2026, businesses should use the remaining window to carry out a structured review of their environmental claims.

In practical terms, this means auditing existing green claims and sustainability labels to ensure they are specific, accurate and substantiated. Generic terms like "green", "eco-friendly" or "sustainable" should either be dropped or accompanied by a clear, factual explanation in the same medium. Forward-looking claims such as net-zero targets or carbon-reduction pledges must be backed by a concrete and verifiable plan. Sustainability labels should only be used where they are based on a recognised certification scheme or established by a public authority.

Companies operating across the EU should also be aware that similar rules are being implemented in all member states under the same Directive, making a consistent, EU-wide review of marketing materials advisable.

From a UK perspective, “green” trade mark claims are primarily controlled through a combination of, in particular, the Competition and Markets Authority’s (CMA) Green Claims Code, ASA enforcement on misleading environmental advertising, and the application of the Trade Marks Act 1994 (including the examination of “green” terms and whether they are descriptive or deceptive), alongside broader consumer protection rules and, for FCA-authorised firms, anti-greenwashing rules.

The bottom line: green claims are not off the table, but the bar for using them is rising. Clear, honest and well-documented environmental communication is not just a legal requirement, it is increasingly what consumers and regulators expect.

With thanks to Chartered Trade Mark Attorney Jennifer Heath for the provision of UK-related content in this article.