STOP FALSE ECO-FRIENDLY BUSINESS PRACTICES: THE NEW DIRECTIVE (EU) 2024/825 AGAINST GREENWASHING

Green window-dressing or false environmentalism (so-called Greenwashing) is a phenomenon that refers to a communication technique, widespread today, whereby a company extols or falsely claims to follow eco-friendly practices to capitalize on the growing demand for sustainable products.

In recent times, greenwashing has involved numerous cases of misleading advertising, false labels and positive environmental images of products without a corresponding commitment to sustainable practices. It is, therefore, a marketing technique unsupported by real corporate commitment to the promises made to the consumer and, often, used to divert public attention from the effects of their own activities that are anything but positive for the environment.

Not only that. Following a few surveys conducted by the European Commission, total confusion has emerged on environmental issues on the part of the various Member States, confusion that makes consumers still very confusing in their purchasing choices, even though they are eager to buy eco-friendly products.

In this context, as early as November 2022, the European Council took action in approving the Corporate Sustainability Reporting Directive (CSRD, EU Directive 2022/2464), a directive that obliged large European companies to make public data on how their business model impacts the environment and people.

Anyway, the decisive step was taken on 6 March 2024, when the European Parliament approved Directive (EU) 2024/825 of 28 February 2024, amending Directives 2005/29/EC and 2011/83/EU, with regard to empowering consumers for the green transition by improving protection against unfair practices and information. The European legislator, therefore, takes a definitive stand against greenwashing, aiming to protect consumers from misleading advertising and empower them to make informed purchasing choices.

In particular, the new Directive (EU) 2024/825, which will have to be transposed by the Member States by 27 March 2026, includes in the list of commercial practices considered unfair in all cases (in Annex I of Directive 2005/29/EC and Art. 23 of the Italian Consumer Code) new practices attributable to greenwashing, including: displaying a sustainability label that is not based on a certification system or is not established by public authorities; making a generic environmental claim for which the trader is not able to demonstrate the recognized excellence of the environmental performance relevant to the claim; making an environmental claim concerning the trader's product or activity as a whole when it concerns only a certain aspect of the product or activity making a claim that a product has a neutral, reduced or positive impact on the environment in terms of greenhouse gas emissions; presenting requirements imposed by law on the Union market for all products belonging to a given category as if they were a distinctive feature of the trader's offer.

The Directive on the so-called prohibition of greenwashing also modifies the rules on product labelling, prohibiting the use of generic environmental claims such as 'environmentally friendly', 'animal friendly', 'green', 'natural', 'biodegradable', 'climate neutral' or 'eco' if not supported by evidence. Unfounded durability claims, calls to replace consumer goods earlier than necessary and false claims on the reparability of a product are also prohibited.

In other words, the new directive aims to make communication concerning the 'green' market clear and understandable, whereby advertising slogans and inaccurate or generic claims will be replaced by accurate ones supported by data or certifications. All this, in the hope that the consumer will be able to make a more informed purchase and be able to use the products, and possibly repair them, until their 'natural obsolescence'. This, logically, will be linked to a new marketing and communication strategy, wishing for new business models that are not only aimed at indiscriminate consumption.

Authors: Avv. Daniela Di Palma e Dott.ssa Marta Minnici