EU’s Anti-Greenwashing Law Imposes Fines on Companies Making False Claims

The European Union (EU) has taken a major step to combat the growing trend of “greenwashing” by adopting a new anti-greenwashing law. This law aims to penalize companies that make false or misleading claims about the environmental impact of their products or services. Firms will now face hefty fines if they are found guilty of greenwashing their products, which can adversely affect consumers’ choices and the environment. In this article, we will explore the impact of this new law on businesses and what measures they can take to prevent greenwashing.


New EU rules will require companies to provide evidence to back up their environmental claims or face fines and class action lawsuits. The legislation targets the spread of unverified green labels in the bloc and will ban misleading statements by fast fashion brands stating that a garment is “made from” recycled materials without supporting evidence. The regulations are aimed at curtailing “greenwashing”, the practice of firms exaggerating their climate credentials to attract customers. The regulations will require SMEs and larger companies with annual turnovers of over €2m and over 10 staff to substantiate environmental claims with verified scientific evidence. Companies claiming to be “climate neutral” will also have to reveal whether they offset their emissions by investing in renewables. National regulators will be permitted to inspect firms breaking the rules and impose fines of as much as 4% of annual turnover. Consumer groups will be able to bring class action lawsuits.


In conclusion, the EU’s upcoming anti-greenwashing law represents a significant step towards holding companies accountable for misleading claims about their products’ environmental impact. With fines potentially reaching millions of euros, firms will need to carefully scrutinize their marketing language to ensure that it accurately reflects their sustainability credentials. Hopefully, this increased transparency will lead to greater public trust in companies’ environmental pledges, and ultimately contribute towards a more sustainable future.