Planned amendment to the UWG: These advertising measures will soon be banned!

The legal framework for advertising and corporate communications is set to be tightened once again. Advertising claims relating to environmental protection and sustainability—known as green claims—as well as product quality are to be more strictly regulated, according to a draft from the Ministry of Justice.

Why is the UWG being amended?

The Federal Ministry of Justice has published a draft for discussion on amending the UWG (Act against Unfair Competition).

The proposed amendments are intended to implement Directive (EU) 2024/825 on empowering consumers for the green transition through better protection against unfair practices and better information.

Particular attention is being paid to greenwashing and environmental advertising claims. The new regulations are intended to ensure greater transparency and enable consumers to make informed purchasing decisions.

Which advertising measures will be prohibited in the future?

1. Vague or unsubstantiated environmental claims

General terms such as “climate neutral,” “sustainable,” or “environmentally friendly” will only be permitted in the future if they are clearly defined and substantiated with clear specifications. Companies must either refer to scientifically based environmental standards or publish detailed implementation plans.

2. Misleading sustainability labels

Only government-recognized or independently certified environmental and sustainability labels may continue to be used. Proprietary, unverifiable labels will no longer be permitted. In addition, the evaluation criteria must be accessible.

3. Compensation for greenhouse gas emissions

Advertising with statements based on the compensation of greenhouse gas emissions will be prohibited. In the future, it will no longer be permitted to advertise with claims such as “climate neutral” if this climate neutrality is only achieved through compensation payments.

4. False statements about durability and reparability

Companies may not make exaggerated promises about the longevity or reparability of products. It is also prohibited to advertise goods with deliberately shortened durability or to misrepresent their reparability.

5. Environmental claims that refer to the entire product or company will be prohibited if the environmental claim only refers to a part of it.

General terms such as “climate neutral,” “sustainable,” or “environmentally friendly” will only be permitted in the future if they are clearly defined and substantiated with clear specifications. Companies must either refer to scientifically based environmental standards or publish detailed implementation plans.

Advertising with irrelevant information

A new form of misleading advertising is also to be introduced: advertising with a benefit for the consumer that is irrelevant and does not result from a feature of the product or business activity will be prohibited in future.

When exactly a benefit is irrelevant must be determined on a case-by-case basis. Recital 5 of the Directive gives the following two examples:

• Advertising bottled water as “gluten-free”
• Advertising paper sheets as “plastic-free”

What are the consequences of the UWG amendment for companies?

Companies should review their marketing materials (website, flyers, social media presence, etc.) and revise them if necessary. Advertising claims relating to the environment can already be misleading today, but this will be further tightened in the future.

The risks of non-compliance are high: warnings and reputational damage are possible.

Industries that advertise heavily with environmental and sustainability promises, such as the food, furniture, fashion, and electronics industries, are particularly affected.

How can companies prepare?

• Review advertising measures: Check existing marketing campaigns and product labels for legally compliant statements.
• Secure evidence: Back up environmental and sustainability claims with reliable studies, certifications, and publicly available reports. Anyone who wants to advertise with environmental claims after the amendment to the UWG should prepare early, as the relevant certifications take time.
• Use certified seals: If you use your own labels, these should be replaced by seals from recognized certification systems. Your own labels will no longer be permitted!
• Provide clear and accurate product information: Communicate information on durability, reparability, and software updates correctly and transparently.
• Seek legal advice: Early review can help avoid costly violations.

When do the new requirements come into effect?

There is still enough time to prepare for the changes. The EU directive must be implemented by March 27, 2026. The new regulations must then be applied from September 27, 2026.

Due to the early federal elections, the discussion paper from the Ministry of Justice will not find its way into the Bundestag until after the elections. However, as this is the implementation of an EU directive, the current paper can already be used as a guide. We do not expect there to be any significant changes to the content.

If, however, implementation does not take place (in time), the courts would be obliged to interpret existing national law in accordance with European law. This does not pose a major challenge, particularly with regard to the misleading use of green claims. For example, the Federal Court of Justice (judgment of June 27, 2024, I ZR 98/23) has already ruled under current law that advertising with the word “climate neutral” is misleading if no further explanations are provided.

The directive does not apply directly. However, as it clarifies existing unfair practices, national courts can in principle also interpret the provisions of the directive as general misleading practices.

Conclusion: Prepare now to avoid future warnings!

The planned amendment to the UWG will bring about far-reaching changes for advertising and corporate communications. Anyone who wants to continue advertising with environmental and sustainability promises will have to meet stricter documentation requirements in the future. Companies should adapt early on to minimize legal risks and maintain consumer confidence.