To shield consumers from deceptive advertisements, the European Parliament has adopted a position on the creation of a verification and pre-approval mechanism for environmental marketing claims. Under the green claims regulation, businesses would have to provide proof for any environmental marketing claims they make before promoting their products as “biodegradable,” “less polluting,” “water saving,” or “containing bio-based content.”
According to a news release from the Parliament, in order to shield consumers from misleading and deceptive advertising, EU nations would need to designate verifiers to pre-approve the use of such claims.
Simpler claims and products could benefit from speedier or easier verification, but Parliament wants claims and their supporting documentation to be evaluated within 30 days.
The new regulations would not apply to micro enterprises, and SMEs would have an extra year to comply with the regulations than larger companies. Businesses that violate the regulations may be subject to fines of at least 4% of their yearly sales, income loss, and temporary exclusion from public procurement bids, among other consequences.
Carbon offsetting schemes alone would not be permitted to be the basis for green claims. Businesses may, however, utilize carbon removal and offsetting programs in their advertisements if they have already minimized their emissions and are only using them for residual emissions. The programs’ carbon credits, like those created under the Carbon Removals Act, must be verified and of the highest caliber.
Additionally, Parliament determined that while green claims about items that contain dangerous materials should still be allowed, the Commission should soon determine whether or not they should be completely prohibited.
Reporteur Andrus Ansip (Renew, EE) for the Internal Market Committee stated: “Studies reveal that more than half of environmental claims are ambiguous, deceptive, or baseless. Speaking of satisfied customers is impossible if every other green claim is untrue. As long as certain merchants are deceiving, we cannot discuss creating an even playing field for our enterprises. The Green Claims Directive, in my opinion, strikes a compromise between providing clarity for consumers and easing the load on merchants in comparison to claim-by-claim verification.
“It’s time to stop greenwashing,” stated Cyrus Engererer, the rapporteur for the Environment Committee (S&D, MT). Our stance puts an end to the widespread use of false environmental claims that have misled customers for far too long. We’ll see to it that companies have the resources they need to implement true sustainability practices. European customers want to choose sustainably, thus businesses that sell goods or services need to ensure that their eco-friendly promises are supported by science.
At 467 votes in favor, 65 against, and 74 abstentions, the parliament approved its first reading stance. The subject will be investigated by the newly elected Parliament following the June 6–9, 2024, European elections.
