Justice and Consumer Protection Minister Stefanie Hubig (SPD) is planning significantly stricter regulations for product advertising using terms like "environmentally friendly" or "biodegradable." "Such advertising claims sound positive, but it is often unclear what exactly lies behind them. We want to change that," Hubig explained on Monday in Berlin. Stricter regulations will also apply to advertising claiming climate neutrality, as well as other, sometimes manipulative, practices used by companies.
"We are ensuring that consumers can make informed purchasing decisions and that competition with environmental claims is fair," Hubig explained about the new draft law, which is intended to implement an EU directive. "In the future, advertising with environmental claims should require that the claim can be substantiated," the minister emphasized. "This is in the interest of consumers – and in the interest of all companies whose products are truly environmentally friendly." Environmental claims must not "degenerate into meaningless empty phrases."
According to the ministry, the specific plan is that general environmental claims about a product, such as "sustainable" or "environmentally friendly," will only be permitted if they can be substantiated. If they refer only to a partial aspect of the product, this must be clearly stated. "Advertising claims about future environmental performance, such as 'all our packaging will be fully recyclable by 2030,' must in future be accompanied by a realistic, publicly accessible implementation plan," it continued.
Advertising with the "climate-neutral" label will only be permitted if this applies to the product or its production itself, but not if "climate neutrality" is achieved through the purchase of CO2 certificates. Sustainability labels that highlight a product's ecological or social characteristics will therefore in future have to be established by the government or based on an externally audited certification system. Self-certifications will be prohibited.
In addition, Hubig is planning a ban on advertising products with a deliberately limited shelf life. This ban should apply whenever there is knowledge of such practices, not only for the manufacturer but also for retailers. This would affect, for example, "sellers of electrical appliances who know that the manufacturer of the electrical appliances has intentionally installed poor-quality components so that consumers have to replace the electrical appliance more frequently," the ministry explained. If goods are advertised as "repairable," this must actually be the case.
Stricter rules will also apply to online design templates for financial services contracts. Website designs that "influence or hinder consumers when concluding financial services contracts" will be prohibited. Specifically, if multiple options are available, no one may be highlighted, for example, by an enlarged "Agree" button.
Furthermore, according to the proposal, consumers may not be repeatedly asked to make a selection even though they have already made it previously. This is currently the case, for example, when an "Accept all" button appears again after cookies have already been deselected. Furthermore, the process for registering for and terminating a service must be designed in a comparable manner in the future. "Cancelling a service must not be more difficult than registering for it," it stated.
The draft amendment to the Act Against Unfair Competition was published Monday afternoon and sent to states and associations. They can comment on it until July 25. After that, the Cabinet, followed by the Bundestag and Bundesrat, must approve the draft.
The basis is an EU directive from February 2024. It is intended to contribute to ecological transition and sustainable consumption behavior by empowering consumers, while also providing better protection against unfair practices. Member states must implement it into national law by the end of March 2026.
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