A new EU directive has recently put Berlin entrepreneur Philipp Siefer under a lot of stress: "It almost cost us our heads." And he actually thinks the idea behind it is good, because it's about sustainability. His company einhorn, a manufacturer of period products and condoms, won the German Sustainability Award last year. The problem with the directive is its implementation. Other German companies also say similar things.
As of today, the so-called EU directive to empower consumers for the ecological transition through better protection against unfair practices and through better information applies. Because of its English name, it is also known as the EmpCo policy. Or more simply: It's about rules against greenwashing with which the European Union wants to protect consumers from misleading environmental statements.
Changes in the supermarket and drugstore
Consumers will notice the new rules, for example when shopping at the drugstore or supermarket. Many packaging that currently contains terms such as “environmentally friendly” or “green” will soon look different. The new EU directive prohibits the use of such general terms unless they can be clearly justified and proven. The same applies to advertising.
This not only protects consumers, says EU MP Delara Burkhardt. “The rules also help companies that really invest in environmental protection because they no longer have to compete against mere promises,” says the SPD politician.
The German Trade Association supports the aim of the directive to take action against greenwashing. However, there is legal uncertainty for companies when it comes to the specific requirements and conditions. “Some of our companies don’t even know what the framework and requirements for implementation are,” criticizes Stephan Genth, managing director of the HDE.
This should be clearer with the term “climate neutral”. According to the directive, companies are not allowed to use this if they are referring to CO2 compensation outside the value chain. So, for example, if you paid to plant trees.
“Seals make a big impression on consumers”
In addition, many seals that advertise sustainability are banned. The new directive only allows seals that are based on an external certification system or issued by government bodies.
Praise for this comes from the European Consumer Center. “Seals make a big impression on consumers,” says Karolina Woytal. But: "Many consumers cannot tell whether there is a testing process behind a seal or whether it is a marketing measure."
Entrepreneur Siefer also calls so-called greenwashing a problem. Nevertheless, the directive has become a difficulty for him because the word “fair” appeared on the packaging of around two million tampons.
You can also see a symbol on packaging that the company developed itself: "fairstainable" - a combination of the English words for fair and sustainable. But this is not certified by an external body. The company justifies the symbol by saying that it pays its producers wages above the market average and pays attention to sustainable packaging materials.
Millions of products affected
Many other companies faced similar problems: In the book industry, for example, there was concern that books that contained information about sustainable or climate-friendly printing would have to be destroyed. In the summer, an alliance of industrial and trade associations sent a letter to Federal Justice Minister Stefanie Hubig and EU Justice Commissioner Michael McGrath. In it, the associations support the aim of the directive, but expressed concern that a number of items would have to be thrown away because their packaging or labels are no longer permitted under the new directive.
“We assume that around 300 million products in Germany are affected,” says Stephan Genth from the German Trade Association, who is also one of the signatories of the letter. The associations therefore demanded a twelve-month sales period.
Directive has been in force since 2024
Upon request, the Federal Environment Ministry pointed out that the EU directive came into force in March 2024: "For two and a half years, these changes have been clear in detail with the adoption of the directive."
The European Consumer Protection Center reacts similarly to the reactions from business: "In my opinion, companies who talk about surprise here have not done their homework, namely not observed the market," says a spokesman.
In Germany there is no central authority that monitors compliance with the guidelines. Lawsuits for violations of the new rules are expected from environmental associations, among others.
Short-term changes
Three days before the rules were to apply, the Bundestag decided on a temporary special regulation at short notice. This concerns goods that were placed on the market before September 27th. If a lawsuit arises, proportionality should be taken into account, i.e. whether companies should have thrown away many perfectly good products.
This comes too late for Philipp Siefer, he says. His company tried to sell the tampons before Sunday - online at a steep discount. Instead of using the container, he had to send goods by air freight - contrary to his sustainability standards - and had, among other things, additional costs for storage. “As a small company, this directive cost us a mid-six-figure sum,” says Siefer.
