European UnionA business claims their product is 'eco-friendly' but it's not. Is this greenwashing illegal?
Yes, falsely claiming a product is 'eco-friendly' is illegal in the EU under consumer protection and unfair commercial practices laws.
What the Law Says
The EU prohibits misleading environmental claims through binding directives that member states must implement into national law.
The Unfair Commercial Practices Directive (2005/29/EC) bans 'misleading actions' that deceive consumers about a product's environmental characteristics. A false 'eco-friendly' claim qualifies if it causes or is likely to cause the average consumer to take a transactional decision they would not have taken otherwise.
The 2019 Enforcement and Modernisation Directive (2019/2161) strengthened enforcement, requiring authorities to act against greenwashing and allowing for fines up to 4% of a company’s annual turnover in some Member States — or fixed penalties like €10 million where turnover-based calculation isn’t feasible.
Under both directives, traders must ensure environmental claims are truthful, accurate, clear, verifiable, and based on recognised scientific evidence. Vague terms like 'eco-friendly', 'green', or 'sustainable' without qualification or substantiation are presumed misleading.
Statutory TextA commercial practice is misleading if it contains false information and is therefore untruthful… or if it deceives or is likely to deceive the average consumer… and causes or is likely to cause him to take a transactional decision he would not have taken otherwise.
— Directive 2005/29/EC, Art. 6(1)(a) — Misleading actions
Statutory TextMember States shall ensure that penalties for infringements… are effective, proportionate and dissuasive… including fines calculated on the basis of the trader’s turnover.
— Directive (EU) 2019/2161, Art. 7 — Penalties
What to Do
Verify all environmental claims with robust, up-to-date scientific evidence and third-party certifications where possible.
Avoid vague, unqualified terms like 'eco-friendly' unless fully substantiated and compliant with the EU Commission’s 'Guidance on Green Claims' (2023).
Disclose limitations (e.g., 'packaging is recyclable where facilities exist') and avoid omitting material information.
Respond promptly to enforcement requests from national authorities (e.g., Germany’s Bundeskartellamt or France’s DGCCRF).
If challenged, withdraw the claim immediately and offer redress — consumers may be entitled to refunds or compensation within 14 days under national implementation laws.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.