24 March 2023: The new directive aims to create Europe-wide, uniform standards on information requirements and the substantiality of environment-related advertising The proposal sets uniform minimum requirements for environment-related claims in advertising and proposes specific criteria for substantiating and verifying these claims.
Companies must substantiate their environmental claims based on scientific evidence and have them verified by independent, accredited bodies. In addition, environmental claims should be communicated clearly and understandably, and relevant information about the product or company must be provided along with the claim. "Effective proportionate and dissuasive" penalties are to be levied for violations of the directive. According to the draft, the imposition of the maximum penalty of sanction can mean a fine of at least 4% of the annual turnover of the company concerned.
The Green Claims Directive is part of the Circular Economy Action Plan, one of the components of the European Green Deal. The aim of the directive is to make environmental claims in advertisements more reliable and thus enable consumers to consume more sustainably.
The proposed Directive still needs to be approved by the European Parliament and the Council of the European Union. Once adopted, the Directive must be implemented in national legislation in EU Member States. Under the proposal, Member States will have to designate competent authorities and give them all necessary powers of investigation and enforcement, to ensure compliance with the Directive and establish a regulatory and sanctioning regime.
Author: GNF