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EU Adopts a New Directive to Fight Greenwashing!

EU Adopts a New Directive to Fight Greenwashing!

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On March 22, 2023, the European Commission adopted a proposal for a new directive to prevent businesses from misleading their customers about the environmental characteristics of their products and services.

The proposed Green Claims Directive (“GCD”) aims to provide consumers with valid, comparable, and verifiable information about the environmental impacts of the purchased products. The new rules will regulate various claims made by businesses regarding the environmental aspects or performance of their products or services that are not already targeted by other EU rules.

GCD also regulates environmental labels, which provide information on the environmental characteristics of a product or a service. There is an increasing number of labels on the EU market and consumers are struggling to read and rely on them. The GCD sets out clear criteria for companies to prove their environmental claims and mandates that these claims and labels must be checked by an independent and accredited verifier.

In recent years, the practice of so-called “greenwashing” has resulted in consumers’ distrust of environmental claims. Therefore, the GCD seeks to address this issue by enabling consumers to make informed purchasing decisions. The proposed directive complements the Directive on Empowering Consumers in the Green Transition, which aims to encourage sustainable consumption by providing consumers with reliable and understandable information about the environmental impact of the products they buy. The adoption of the proposed legislation will not only protect the consumers and the environment but will also provide a competitive edge to companies that are truly committed to increasing the environmental sustainability of their activities.

By Nemanja Sladakovic, Senior Associate, Gecic Law

Gecic Law at a Glance

Committed to redefining a law firm's role in an emerging regional market, Gecić Law is a full-service law firm that advises international and local clients from the public and private sectors in navigating the complex legal landscape of the region across multiple practice areas. Members of the Gecić Law team have graduated from leading universities in the US and Europe. They have extensive local and international experience, with a particular focus on EU regulatory frameworks and international trade and a proven track record in providing innovative and practical solutions in the most complex of matters.

Gecić Law is an exclusive member of two leading global alliances, TerraLex and TAGLaw, extending its international footprint. The firm and its lawyers have continuously been recognized in several practice areas by elite global directories, including The Legal 500, Chambers and Partners and Benchmark Litigation. Gecić Law was named Law Firm of the Year: South Eastern Europe 2021 and Law Firm of the Year: Eastern Europe and the Balkans 2020 at The Lawyer European Awards and was repeatedly nominated in other practice areas.

For more details, please visit geciclaw.com.