EU crackdown on greenwashing and planned obsolescence is official

Brussels – Member states’ final green light to new rules to fight so-called greenwashing, cosmetic environmentalism, and strengthen consumer rights, has arrived. Tightening up on unfair trade practices: slogans such as “eco-friendly,” “natural,” and “biodegradable” are banned unless supported by evidence recognized by public authorities, and on the proliferation of sustainability labels, which will have to be based on certification systems approved or created by public authorities.

The new rules amend the Unfair Commercial Practices Directive (UCPD) and the Consumer Rights Directive (CRD), adapting them to the green transition and circular economy. Submitted on March 30, 2022, by the European Commission, the proposal was endorsed by the EU’s Parliament and Council last September 19. After the formal approval by the European Parliament during its January plenary session, this was the final step before publication in the Official Journal. “Thanks to the directive adopted today, consumers will be better informed, better protected, and better equipped to be real actors in the green transition,” commented Belgian Vice-Premier Pierre-Yves Dermagne on behalf of the Belgian presidency of the EU Council.

The directive will protect consumers from misleading “green” claims: according to a study conducted by the EU in 2020, 53 per cent of environmental claims made by companies are “vague, misleading, or unfounded.” Including those related to carbon offsetting: companies will no longer be able to use statements that suggest a neutral, reduced, or positive environmental impact by participating in emission-offsetting schemes. With all the various facets of the case: for example, airlines will no longer be able to sell climate-neutral flights and encourage consumers to offset emissions by paying more.

Also regulated is the use of sustainability labels, given the confusion caused by their proliferation and lack of comparative data. To be authorized, sustainability labels will have to be based on certification systems approved or created by public authorities.

Cracking down on planned obsolescence as well: new rules will clarify the liability of retailers for information—or lack thereof—about premature obsolescence, unnecessary software upgrades, or unjustified obligation to purchase replacement parts from the original manufacturer. A new harmonized label will also be created to give greater prominence to products with an extended warranty period.