Empowering Consumers Directive (EmpCo) – Complete Overview

More than half of all environmental claims in the EU are vague, misleading or unsubstantiated. That was the finding of a European Commission study from 2020, which examined 150 advertising claims across 13 member states. 42 percent of those claims even violated existing consumer law. Against this backdrop, the EU responded in 2024 with the Empowering Consumers Directive — a tightening of consumer law designed to address exactly these practices.

This article is the central overview article on the directive: what it regulates, when it applies, to whom, what penalties it carries, and what steps businesses should take now. Questions specific to particular website types (e-commerce, corporate manufacturers) are covered in dedicated deep-dive articles, which we link to at relevant points.

What is the Empowering Consumers Directive?

The Empowering Consumers Directive — officially “Directive (EU) 2024/825 empowering consumers for the green transition through better protection against unfair practices and through better information” — was adopted by the European Parliament on 28 February 2024 and published in the Official Journal of the EU on 6 March 2024. It entered into force on 26 March 2024 and becomes applicable on 27 September 2026.

It forms part of the European Green Deal and amends two existing directives:

• The Unfair Commercial Practices Directive (UCPD, 2005/29/EC) — the EU’s central standard against misleading advertising
• The Consumer Rights Directive (CRD, 2011/83/EU) — the standard governing pre-contractual information obligations

EmpCo is therefore not a standalone new law, but a sharpening of existing consumer law. This has two important practical consequences: first, the enforcement mechanisms are already established (competition watchdogs, consumer associations, competitor litigation). Second, EmpCo slots seamlessly into national unfair competition law frameworks across member states.

Timeline and national implementation

Who is affected?

The directive applies to all commercial communications directed at consumers in the EU — regardless of industry, company size or the location of the business. Specifically affected are:

• Businesses in all sectors selling products or services to end consumers in the EU
• Manufacturers whose products reach consumers through retailers
• Brand owners with consumer-facing brand communications
• Companies headquartered outside the EU, as soon as they target EU consumers
• B2B suppliers, to the extent that their claims feed into end-consumer communications

The most common misconception: SME exemptions

Many sources mention SME exemptions — extended transition periods or simplified documentation requirements. However, these exemptions relate to the still-pending Green Claims Directive (see the distinction section below), not to EmpCo itself.

There are no size-based exemptions under the Empowering Consumers Directive. The core prohibitions apply from 27 September 2026 to all businesses — regardless of headcount or turnover. Enforcement bodies do not distinguish by company size in practice.

What about purely B2B communications?

The directive targets B2C communications. Purely B2B materials — such as technical data sheets for business customers, internal sales documents, and access-restricted B2B portals — do not fall directly within the scope. However:

• If B2B content is publicly accessible (freely downloadable whitepapers, open data sheets), it can reach consumers and therefore fall under EmpCo
• Where B2B-origin claims are reused or transferred into consumer-facing (B2C) marketing materials, they are subject to EmpCo requirements
• Even where EmpCo does not directly apply, general unfair competition law and its prohibition on misleading statements continues to apply

The key prohibitions at a glance

The directive introduces several new per se prohibitions, which are added to the “blacklist” of prohibited commercial practices. Per se prohibitions mean: no individual assessment of whether something is misleading is required — the practice is automatically unlawful. This makes them particularly easy for enforcement bodies to act on.

What counts as an environmental claim?

The directive defines “environmental claim” very broadly: any voluntary statement in commercial communications — whether text, image, symbol, label, brand name or company name — that expresses or implies that a product, brand or company has positive or reduced environmental impacts compared to alternatives.

Three aspects are particularly important for practice:

Implicit environmental claims through imagery and symbolism

The European Commission clarified in its FAQ of November 2025: purely implicit elements such as colours or images without text do not in themselves constitute a generic environmental claim. But in combination with text or logos, they can. Specifically, visual elements such as green leaves, water droplets or nature motifs can, in combination with text, be treated as implicit environmental claims.

Brand and product names

Brand names, company names and product designations containing terms like “green”, “eco”, “climate neutral” or similar environmental references are explicitly covered by the directive — even if they are trademark-protected. They are subject to the same requirements as generic environmental claims or sustainability labels.

Social and ethical claims

The directive covers not only greenwashing but also social washing. Statements about working conditions, human rights, equal treatment or animal welfare also fall within scope, insofar as they are formulated as advertising claims.

Sustainability labels and certification schemes

From the deadline, sustainability labels are only permissible if they are based on a recognised certification scheme or established by a public authority. This rules out three categories:

• Own-brand labels without third-party verification — e.g. self-designed “We care about sustainability” logos
• Industry association labels without ISO 17065 or equivalent standards
• Labels from public authorities outside the EU, unless they are based on a certification scheme with third-party verification

Recognised labels include the EU Ecolabel (Regulation EC 66/2010), EMAS (Regulation EC 1221/2009), national Type-I ecolabels under EN ISO 14024 (such as the Blue Angel, Nordic Swan or similar), FSC, MSC, EU Organic, and many other third-party certified standards.

Requirements for a recognised certification scheme

For a certification scheme to meet the directive’s requirements, it must:

• Be open to all market participants on transparent, fair and non-discriminatory terms
• Define requirements in consultation with experts and stakeholders
• Provide procedures for handling violations and label withdrawal
• Ensure monitoring by independent third parties — e.g. in accordance with ISO 17065

What the Commission has clarified on own labels

It is not prohibited for the same actor to be both the scheme owner of a certification system and a user of the label — provided the certification scheme meets the formal requirements. In practice, this means a manufacturer can have its own label, but must open the underlying certification scheme to other market participants and subject it to independent third-party verification. For most purely marketing-driven own labels, this is a substantial threshold.

Carbon neutrality and offsetting

One of the most significant practical changes: carbon neutrality claims at product level are effectively no longer usable from the deadline, if they are based on offsetting. Terms such as “carbon neutral”, “CO₂-neutral”, “climate-compensated”, “climate-positive” and similar formulations fall under the per-se prohibition if they rest on offsetting measures outside the value chain.

The underlying rationale: the EU treats reduction and offsetting as fundamentally different. Consumers cannot reliably distinguish between the two when they see a “carbon neutral” label. Hence the prohibition.

What remains permissible?

So-called contribution claims, which transparently describe the company’s own engagement as support — without attributing neutrality to the product or company:

Important: contribution claims must also clearly distance themselves from any suggestion of neutrality or compensation. The legal picture here is not yet fully settled by case law — careful wording with a concrete project, partner and standard reference is significantly safer than generic investment statements.

Future promises and reduction plans

Claims about future environmental performance — “carbon neutral by 2030”, “zero waste by 2025”, “CO₂-free by 2040” — are only permissible under strict conditions from the deadline. They must be supported by:

• Clear, objective, publicly accessible and verifiable commitments
• A detailed and realistic implementation plan
• Measurable interim targets with concrete timeframes
• Adequate resource allocation
• Regular review by an independent external expert
• Publication of the review results

What exactly constitutes a “detailed implementation plan” is not yet fully clarified in law. Practice will develop through the first contested cases. What is certain: a mere statement of intent without a plan, methodology and verification does not suffice.

Further obligations beyond environmental claims

The directive amends not only the UCPD (with the prohibitions discussed above), but also the Consumer Rights Directive (CRD). This creates new pre-contractual information obligations that traders must fulfil before a contract is concluded:

Harmonised label for commercial durability guarantees

Where a manufacturer provides a commercial durability guarantee covering the entire goods at no additional cost and for a duration of more than two years, this information must be communicated using a harmonised label. The label design will be established by the Commission via an implementing act.

Harmonised notice on statutory warranty rights

Consumers must be informed in a prominent manner about the existence and minimum two-year duration of their statutory warranty rights — via a harmonised notice whose format will likewise be set by the Commission.

Mandatory information on software updates

For goods with digital elements, digital content and services, the minimum period during which the manufacturer will provide software updates must be communicated pre-contractually. This information must be given as a time period or specific date.

Repairability score and repair information

Where a harmonised repairability score has been established at EU level for a product category, it must be communicated. Where no such score exists, alternative information on spare parts availability, repair costs and repair manuals must be provided — insofar as the manufacturer supplies this information.

Eco-friendly delivery options

Where available, consumers must be informed of eco-friendly delivery options — such as delivery by cargo bike, electric vehicle or consolidated shipping options.

What changes for websites and communications

EmpCo covers all commercial communications directed at consumers. For websites, this means in practice: virtually every touchpoint can be in scope. However, the implications differ considerably depending on the type of website.

Across all website types: compliance is not a one-off exercise. Content changes continuously — new press releases, new campaigns, new product launches, regional adaptations. A one-time audit is not enough; ongoing monitoring is essential.

Sanctions and enforcement

Violations of the EmpCo Directive primarily entail civil law consequences, but can also lead to fines in specific constellations.

Civil law sanctions

The standard case: cease-and-desist letters from competitors or associations such as consumer watchdogs and consumer protection organisations. These typically result in:

• Injunctive relief — the problematic claim must be removed
• Corrective action — already distributed materials may need to be recalled
• Damages claims — where verifiable losses to competitors can be shown
• Profit disgorgement — where the unlawful practice generated quantifiable profit
• Penalty payments for violations of injunctions, potentially very substantial

Fines for widespread cross-border violations

For widespread cross-border violations (affecting at least three EU member states), a fine of up to 4 % of EU-wide annual turnover or a minimum of €2 million — whichever is higher — can be imposed through the CPC mechanism.

Per-se prohibitions make enforcement straightforward

The prohibitions added to the “blacklist” are per-se prohibitions — no individual assessment of whether something is misleading is needed. This makes them particularly easy for enforcement bodies to act on. Anyone using a generic environmental claim without substantiation, claiming carbon neutrality based on offsetting, or using an uncertified own-brand label faces a very direct legal consequence.

Distinction from the Green Claims Directive

One of the most common points of confusion: the Empowering Consumers Directive (EmpCo) and the Green Claims Directive (GCD) are often mentioned in the same breath — but they are two different legal acts with different status.

The GCD was originally intended as a complementary detailed regulation — with granular requirements for pre-market verification of environmental claims and a pre-certification obligation. After the collapse of trilogue negotiations in June 2025, the Commission withdrew the proposal. Whether and in what form the GCD will return remains open.

Important for practice: The fate of the GCD does not change EmpCo. The Empowering Consumers Directive is enacted, transposed in member state law, and applies from 27 September 2026 — regardless of whether the GCD ever follows.

Overlap with the CSRD

A subtle but important interface: the Corporate Sustainability Reporting Directive (CSRD) requires certain companies to produce detailed sustainability reports addressed to investors. These reports do not in principle fall within EmpCo scope, because they are mandatory and not directed at consumers.

But as soon as companies use statements from their CSRD report in advertising — in press releases, on marketing hubs, in social media posts or as selling arguments on product pages — EmpCo requirements apply. This interface is frequently overlooked in practice, with potentially costly consequences.

Also important: even if a company is relieved of CSRD reporting obligations through the EU Omnibus Package, it remains fully bound by the EmpCo advertising rules. Businesses that scale back their internal sustainability data infrastructure because CSRD reporting is no longer required risk being unable to substantiate their green claims against competitors or consumer associations in the event of a dispute.

What businesses should do now

A pragmatic ten-step roadmap — with references to the detailed deep-dive articles:

1. Create a domain inventory — which websites, subdomains, and microsites belong to the business? For large corporate groups, this is often not straightforward.
2. Conduct a content inventory — which terms, labels and claims appear on which pages? For larger websites, this is only feasible with automated tools.
3. Prioritise by risk — high-risk claims first (carbon neutrality based on offsetting, generic terms without evidence, unverified own labels).
4. Secure evidence — for every environmental claim you wish to retain, you need a traceable evidence chain: studies, life cycle assessments, certificates, methodology descriptions.
5. Revise texts — either supplement generic terms with concrete, evidenced information or replace them. Also review brand and product names with environmental references.
6. Audit visual elements — review category pages and PDP galleries for implicit environmental signals.
7. Review sustainability labels — are all labels in use based on a recognised certification scheme?
8. Implement pre-contractual information obligations — harmonised labels, update periods, repairability information need to be technically integrated into the shop.
9. Establish continuous monitoring — compliance is not a one-off project. Ongoing screening prevents new violations from quietly appearing after 27 September 2026.
10. Get legal assessment of critical cases — high-risk findings should be evaluated by a specialist commercial law firm.

Frequently asked questions