Greenwashing in Germany: Disclosure Obligations and Legal Consequences of Advertising with Positive Climate Effects
In today's world, environmental and climate protection are increasingly important topics. Consequently, more and more companies promote their products and services as "green" or "environmentally friendly." However, what happens if these claims are untrue or misleading?
This article examines the disclosure obligations for companies advertising with positive climate effects in Germany. We will also outline the legal consequences of violating these obligations.
What is Greenwashing? Definition and Scope
Before delving into the legal aspects, it is crucial to understand greenwashing. Greenwashing describes the practice of presenting products, services, or an entire company as more environmentally friendly than they truly are. This can occur through misleading statements, ambiguous terms, or a lack of evidence for claimed environmental benefits.
Legal Basis for Environmental Claims and Greenwashing
In Germany, the Unfair Competition Act (UWG) regulates advertising to prevent misleading practices. According to Section 5 UWG, a commercial act is misleading if it contains untrue statements or other deceptive claims about essential characteristics of goods or services. This provision explicitly covers environmental claims.
Specifically for greenwashing, Section 5a UWG is particularly relevant. It stipulates that a statement or sign about certain characteristics of a good or service is misleading if it does not correspond to the actual environmental properties. Furthermore, exaggerated or unclear environmental claims can be considered unfair and anti-competitive under Section 5 UWG.
The EU Unfair Commercial Practices Directive (UCP Directive) also includes regulations on misleading environmental claims. These have been incorporated into national law through the UWG. Violations can lead to significant fines and warnings.
Key Court Rulings on Greenwashing and Climate Advertising
Two recent judgments highlight the legal requirements for advertising with positive climate effects. These cases underscore the courts' stricter approach to environmental claims.
Bremen Higher Regional Court on "Sustainable" and "Resource-Friendly" Claims
The Bremen Higher Regional Court recently ruled (Case No. 2 U 103/2) that a company's advertising using terms like "sustainable" and "resource-friendly" was misleading. The company failed to prove that its products actually used fewer resources than comparable alternatives. The court clarified that businesses advertising environmental friendliness must provide concrete evidence to substantiate their claims.
Karlsruhe Regional Court on "Climate Neutral" Advertising
In another significant case, the Karlsruhe Regional Court ruled (judgment of July 26, 2023, Case No. 13 O 46/22 KfH) that the drugstore chain dm had advertised misleadingly. The company described its own-brand products as "climate neutral" without providing sufficient information on the calculation of this climate neutrality. The court emphasized that companies making claims of climate neutrality must offer transparent information regarding their calculation methods and underlying data.
Further Judicial Decisions on Greenwashing
Numerous other judgments further clarify the legal landscape regarding greenwashing and advertising with positive climate effects. These rulings collectively indicate a trend towards stricter requirements for environmental claims.
- Düsseldorf Regional Court, July 19, 2013, Ref. 38 O 123/12 U: An advertising claim for "climate-neutral candles" was deemed misleading. The court found that offset certificates are insufficient if they suggest the candles themselves burn in a climate-neutral manner.
- Frankfurt Regional Court, May 31, 2016, Ref. 3-06 O 40/15: Advertising "100% climate neutral" for frozen food was found misleading. Climate neutrality was only achieved through offsetting, which was not clearly communicated.
- Frankfurt Regional Court, March 17, 2022: The court ruled that the claim "climate neutral" requires more detailed explanation, as certification criteria are complex and multi-layered.
- Mönchengladbach Regional Court, February 25, 2022, Ref. 8 O 17/21: This court held that the concept of climate neutrality through offsetting is well-known, and "climate neutral" does not necessarily promise emission-free production.
- Oldenburg Regional Court, December 16, 2021, Ref. 15 O 1469/21: The court stated that with "climate-neutral" meat, consumers expect a balanced CO2 footprint or emission-free production.
- Frankfurt Higher Regional Court, November 10, 2022, Ref. 6 U 104/22: When advertising with "climate neutral," information must be provided on the essential circumstances of how climate neutrality is achieved.
- Schleswig Higher Regional Court, June 30, 2022, Ref. 6 U 46/21: This ruling determined that "carbon neutral" implies a balanced carbon footprint but does not automatically require an explanation of offsetting methods. This particular case may contrast with others, showing the nuances of interpretation.
These rulings demonstrate that courts are increasingly interpreting the term "climate neutral" more concretely. They are imposing certain minimum requirements on advertising claims related to climate neutrality. Crucially, material circumstances, such as compensation measures, must be disclosed if climate neutrality is not achieved through emission-free production.
Conclusion
Advertising positive climate effects is a complex issue. While it can raise awareness for environmental protection and encourage sustainable consumption, it also carries the risk of greenwashing. Greenwashing misleads consumers and erodes trust in genuinely environmentally friendly products and services.
Therefore, companies that advertise positive climate effects must take their disclosure obligations seriously. They need to ensure their environmental claims are truthful, clear, and verifiable. Providing sufficient information to support these claims is paramount. Otherwise, businesses risk not only legal repercussions but also a significant loss of customer trust. For further guidance on compliance, consider insights into SEO and law.
The development of case law in this area remains dynamic. However, one aspect is clear: the duty to educate and provide transparency when advertising with positive climate effects is gaining increasing importance in an environmentally conscious society. This trend is likely to apply beyond online retail, affecting a wide range of advertising claims, such as "Our data center is climate-neutral," and similar statements.