Sustainability claims are marketing statements regarding the environmental or social impact of a product, service, or company. At Musch Legal, we see growing enforcement against greenwashing under unfair trade practices legislation and the new EU Green Claims Directive. Clumsy statements such as 'climate neutral', 'sustainable', or '100% recycled' without evidence lead to fines, civil claims, and reputational damage. Structured marketing compliance is essential.
What is the legal problem? (What is greenwashing legally?)
Greenwashing is a misleading environmental claim that gives the consumer or B2B customer a false impression regarding the sustainability of the product or company. Prohibited under unfair trade practices (Article 6:193b of the Dutch Civil Code) and consumer law. Stricterly regulated since the Empowering Consumers Directive 2024. Companies underestimate verification requirements: 'climate neutral' without Scope 1-2-3 evidence and certified compensation is misleading.
What does the law say? (Which frameworks apply?)
Directive 2005/29/EC (unfair commercial practices), in the Netherlands Article 6:193a-h of the Civil Code. The Empowering Consumers Directive (Directive (EU) 2024/825, in force 26 March 2024) prohibits generic environmental claims without evidence. The EU Green Claims Directive (proposal COM/2023/166) requires prior verification. For financial products, SFDR (Regulation 2019/2088). For energy-efficient products, EU Energy Label Regulation 2017/1369.
The ACM publishes annual guidance on sustainability claims; The Advertising Code Foundation enforces via the Advertising Code Committee.
Claim
Substantiation required
Risk
Climate neutral
Scope 1+2+3 + certified compensation
High: ban without proof from 2024
Recycled material X%
Specification + independent audit
Fine by ACM in case of vague
Sustainably produced
Concrete measurable criterion
High under Empowering Consumers
CO2-free
Full LCA + verification
High: almost always misleading
Eco-friendly
Name specific aspect
Generic claim prohibited from 2024
Claim
Substantiation required
Risk
Climate neutral
Scope 1+2+3 + certified compensation
High: prohibition without proof from 2024
Recycled material X%
Specification + independent audit
Fine by ACM for vagueness
Sustainably produced
Concrete measurable criterion
High score under Empowering Consumers
CO2-free
Full LCA + verification
High: almost always misleading
Eco-friendly
Name specific aspect
Generic claim prohibited from 2024
What risks do companies face? (What threatens with greenwashing?)
ACM fines of up to 900,000 euros per violation or 1 percent of turnover. Civil claims by consumers and competitors under unfair trade practices. Foundation for Advertising Code rulings with a publication obligation. Reputational damage due to negative media attention. For listed companies, shareholder claims under the Financial Supervision Act. Supervisors DNB and AFM for financial sustainability claims under SFDR.
Practical example from our practice (How do we save a marketing claim?)
Musch Legal advised a Dutch retailer that claimed 'climate-neutral' shipping via standard CO2 compensation. The ACM launched an investigation following a complaint regarding greenwashing. We conducted a Life Cycle Assessment, identified Scope 1-2-3 emissions, and verified offset certification by VCS. The marketing claim was adjusted to 'CO2-compensated shipping according to VCS standard'. The ACM investigation was closed without a fine. The client avoided an estimated 350,000 euros in fines and legal costs.
What can you do? (How do you make safe sustainability claims?)
Conduct a Life Cycle Assessment for product-specific claims. Verify with independent certification (B Corp, Cradle to Cradle, VCS, ISO 14001). Avoid generic terms ('sustainable', 'green', 'eco-friendly') without specific criteria. Be specific: '40 percent recycled plastic in the bottle' is safer than 'sustainable packaging'. Document substantiation for 5 years. Engage Musch Legal for a marketing compliance audit.
ESG obligations for international enterprises