Search
Contact
Symbolbild zur EmpCo: Frau schaut sich im Drogeriemarkt Etikett von Flasche an
09.01.2026 | KPMG Law Insights

EmpCo comes into force – answers to the most important practical questions

Environmental claims are becoming increasingly risky for companies. Due to the Empowering Consumers Directive (EmpCo), much stricter rules will soon apply to environmental claims and sustainability labels. The directive will apply from September 27, 2026.

 

 

In Germany, the European requirements are implemented in the Unfair Competition Act (UWG). The Third Act Amending the UWG, which implements the EmpCo requirements, was promulgated in the Federal Law Gazette on February 19, 2026. It is intended to better protect consumers from misleading environmental claims and sustainability seals.

What EmpCo regulates

The changes to the UWG with regard to environmental claims and sustainability seals include defining the term “environmental claim”, adapting the prohibition of misleading statements and adding additional prohibitions to the so-called “black list”.

Concept of the environmental statement

Environmental statements are voluntary statements or representations. They can take the form of text, images, graphics or symbols.

They are intended to convey that a product, brand or company has a positive or no impact on the environment or is less harmful to the environment.

This includes labels, brand names, company names or product names that are used in commercial communication, in particular in advertising.

Sustainability reporting in accordance with the Corporate Sustainability Reporting Directive (CSRD) does not generally fall within the scope of EmpCo, as these reports are not voluntary and are not aimed at consumers. The situation is different if a company uses environmental statements from the sustainability report in its advertising. In this case, the requirements of EmpCo must be complied with.

Unverifiable general environmental claims will be unfair in future

In future, general environmental claims will be unfair if the company cannot prove that they are based on a recognized outstanding environmental performance.

Because vague terms such as “environmentally friendly”, “green” or “biodegradable” give consumers the impression that the products have special environmental properties that have been tested, it must be possible in future to prove that the advertised outstanding environmental performance actually exists.

Statements such as “We will achieve climate neutrality by 2040” will also not be permitted in future if the commitment is not set out in a detailed and realistic implementation plan that is regularly reviewed by an independent external expert.

 

 

Sustainability seals must be based on a certification system

In addition to environmental claims, the legislator also focuses on sustainability seals. Sustainability seals are voluntary trust seals or quality marks. They serve to emphasize or promote the ecological or social characteristics of a product, process or business activity.

In a 2020 study, the EU found that around half of the eco-labels are based on weak or no evidence and that there are a total of 230 sustainability labels in the EU, which vary considerably in their level of transparency.

In future, sustainability seals may only be used if they are based on a certification system or have been established by government bodies. It is not permitted to display a sustainability seal that is neither based on a certification system nor established by government bodies.

EmpCo sets minimum requirements for the certification system in terms of transparency and credibility. For example, the system must be monitored by a third party whose competence and independence from both the system owner and the user of the seal is based on international, EU-wide or national standards and procedures, for example by demonstrating compliance with the ISO 17065 standard. A separate audit structure is therefore required. The trader is obliged to check whether the sustainability seal awarded to him fulfills these requirements. To do this, the retailer must check the publicly available conditions. If you use a sustainability seal that does not comply with EmpCo, this will be at your own expense.

In principle, sustainability seals that do not meet the requirements of EmpCo must be removed from commercial communication from September 27, 2026. If retailers identify sustainability seals on packaging that do not comply with the new rules, they have the option, for example, of covering them with stickers or providing additional information at the point of sale.

What are the penalties for violating EmpCo?

Violations of EmpCo regulations are primarily pursued by entitled competitors, consumer and competition associations and regularly lead to warnings to which companies should respond quickly. If the company does not comply with the warning, there is a risk of injunctions and injunctive relief. Under certain circumstances, claims for damages and even fines may also be considered.

How companies should act now

Companies should prepare for more transparency and stricter requirements for environmental claims at an early stage. The following steps are recommended:

  1. Inventory: Check commercial communication.
  2. Check environmental claims for greenwashing risks
  3. Creating awareness of greenwashing risks within the company, for example through guidelines and training courses
  4. Making commercial communication greenwashing-proof

Conclusion

One thing is clear: greenwashing will be punished even more consistently in future. Those who actively deal with the new rules now and adapt their processes and communication will minimize risks and can position themselves as credible pioneers in the market.

 

 

Explore #more

10.03.2026 | Deal Notifications

KPMG Law advises on the sale of Krasemann Hausverwaltung to Buena

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) provided legal advice to the KRASEMANN family on the sale of KRASEMANN Immobilien- & Gebäudeservice GmbH (KIGS) and KRASEMANN…

09.03.2026 | KPMG Law Insights

MiCAR and whitepaper obligations – what the transitional regulations mean

The Markets in Crypto-Assets Regulation (MiCAR) has been in force for just over a year. Among other things, MiCAR obliges issuers and providers of crypto…

09.03.2026 | In the media

Guest article in Private Banking Magazine: What tokenized banknotes mean in day-to-day treasury operations

The future of payment transactions will be shaped not by new currencies, but by new processing models. A practical report by Marc Pussar (KPMG Law),…

06.03.2026 | In the media

Guest article in smartlegalmarket: Trends for legal departments in 2026 & 2027

KPMG Law has been surveying international legal departments on their challenges for more than ten years. The “Right to Progress” report is now regarded as…

06.03.2026 | KPMG Law Insights

Carve-out: The biggest risks and how the legal workstream avoids them

A carve-out does not usually fail due to a lack of ideas. And not due to a lack of buyers. Nor do they usually fail…

04.03.2026 | In the media

KPMG Law expert with statement in dpn magazine on the Location Promotion Act

Shortly after coming into force, the Location Promotion Act is apparently already having a noticeable effect on the investment plans of institutional market participants. In…

25.02.2026 | Deal Notifications

KPMG Law and KPMG advised Senstar on the acquisition of Blickfeld

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) and KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG) advised Senstar group (Senstar) on the acquisition of all shares in Blickfeld GmbH (Blickfeld).…

20.02.2026 | KPMG Law Insights, Legal Financial Services

Consumer Credit Directive (CCD II) tightens rules for the banking industry

The revised Consumer Credit Directive fundamentally reorganizes the consumer credit business. From November 20, 2026, an extended scope of application and significantly stricter requirements will…

20.02.2026 | In the media

Guest article in PERSONALFÜHRUNG: Between tradition and transformation – HR in SMEs

The German SME sector is an exciting learning field for other organizations. Its structural characteristics not only shape the way decisions are made, but also…

19.02.2026 | Deal Notifications

KPMG Law advises DKB Finance and DKB Kreditbank on the sale of FMP Forderungsmanagement Potsdam to LOANCOS

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) provided comprehensive legal advice to DKB Finance GmbH and DKB Kreditbank AG on the sale of FMP Forderungsmanagement Potsdam…

Contact

Dr. Manuela Meyer

Senior Manager

Heidestraße 58
10557 Berlin

Tel.: +49 30 530199 109
manuelameyer1@kpmg-law.com

© 2026 KPMG Law Rechtsanwaltsgesellschaft mbH, associated with KPMG AG Wirtschaftsprüfungsgesellschaft, a public limited company under German law and a member of the global KPMG organisation of independent member firms affiliated with KPMG International Limited, a Private English Company Limited by Guarantee. All rights reserved. For more details on the structure of KPMG’s global organisation, please visit https://home.kpmg/governance.

KPMG International does not provide services to clients. No member firm is authorised to bind or contract KPMG International or any other member firm to any third party, just as KPMG International is not authorised to bind or contract any other member firm.

Scroll