In recent years, public concern about the roles of organizations in environmental issues has significantly increased. Governments, public institutions, and non-profits now demand that companies adopt environmentally friendly practices. Consumers are seeking “green” products and investors prefer companies that prioritize environmental care. This trend has led companies to adopt greenwashing strategies in marketing to attract eco-conscious consumers.
The term “greenwashing” refers to practices aimed at portraying an organization, its products, goals, and principles as environmentally friendly through the use of specific statements, terminology, and images. Greenwashing is most often associated with the food or cosmetics industry, but it is a common phenomenon, and many companies are taking advantage of the green fad to gain a competitive advantage. This trend has not escaped the attention of legislators and competition authorities.
Directive (EU) 2024/825
Directive (EU) 2024/825 of the European Parliament and of the Council of February 28, 2024, amending Directives 2005/29/EC and 2011/83/EU as regards empowering consumers for the green transition through better protection against unfair practices and through better information (Directive) entered into force on March 26, 2024. Member States must implement it by March 27, 2026. The Directive aims to protect consumer rights and ensure informed purchasing decisions by introducing rules to counteract unfair commercial practices. These practices include misleading environmental claims (greenwashing), misleading social characteristics of products, and non-transparent sustainability labels. The rules empower national bodies, such as the Polish competition authority, to address these practices effectively, ensuring that environmental claims are fair and clear. This allows consumers to choose genuinely eco-friendly products, encouraging competition, and leading to more sustainable products with reduced environmental impact.
We expect that the Directive will significantly impact cosmetics brands, which often use unverified environmental terms like “pure,” “clean,” “natural,” and “green.” These claims should be verified by independent experts with environmental monitoring experience to ensure their accuracy.
Amendment to the Act on Pursuing Claims in Group Proceedings
Recently, the Council of Ministers adopted a draft law amending the Law on Investigation of Claims in Group Proceedings and Certain Other Laws, submitted by the Polish consumer authority. The draft aligns Polish law with Directive (EU) 2020/1828 on representative actions for the protection of collective consumer interests, enabling more effective use of class actions.
This amendment may significantly impact greenwashing proceedings as outlined in Directive (EU) 2024/825. It allows non-governmental organizations and other authorized entities to file class-action lawsuits against businesses violating consumer interests. In the context of greenwashing, this enables groups of consumers to jointly pursue their rights against companies using misleading marketing practices. This increases the likelihood of effectively pursuing claims, especially for individual consumers who might struggle against large corporations.
Directive (EU) 2024/825 mandates that businesses provide clear and reliable information about the environmental characteristics of products. Group proceedings can help enforce these regulations, enabling consumers to better pursue accurate information and raising awareness about greenwashing.
Polish Competition Authority’s Action against Greenwashing
Poland is not as active in counteracting greenwashing as Western European countries like the UK, the Netherlands, or France. However, it is worth pointing out that the President of the Office of Competition and Consumer Protection is aware of the problem and is currently conducting eight investigations into whether ESG-related marketing practices used by businesses constituted greenwashing. The proceedings conducted by the Polish Consumer Authority concern the retail platform Allegro, the cosmetics brands Bielenda Kosmetyki Naturalne, Dr Irena Eris, and L’Oreal Polska, and the apparel brands H&M Hennes & Mauritz, KappAhl Polska, LPP, and Zara Polska. As of the date of publication of this article, the cited proceedings are still pending, and no decisions have been issued.
Conclusions
Recent EU and Polish legislative changes mark significant progress in the fight against greenwashing, especially in the cosmetics industry. Directive (EU) 2024/825 mandates clear, verified environmental claims, compelling cosmetics brands to substantiate terms like “natural” and “green.” Amendments to Polish law enhance consumer class actions, increasing accountability for deceptive practices. The Polish competition authority’s ongoing investigations into major cosmetics brands highlight a growing commitment to combating greenwashing. These combined efforts will likely improve market transparency, foster consumer trust, and encourage more truthful, sustainable practices within the cosmetics sector, contributing to overall environmental protection.
By Pawel Halwa, Partner, and Paulina Klimek-Wozniak, Attorney at Law, Schoenherr
This article was originally published in Issue 11.7 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
