End of greenwashing? Sellers face tighter scrutiny of ‘green’ advertising

Greenwashing refers to misleading communication about the environmental characteristics of a product, service or company that is not supported by relevant and verifiable facts. As a result, consumers may be led to believe that their purchase contributes to environmental protection and may make economic decisions they would not otherwise have made.

These practices may soon come to an end. New rules based on Directive (EU) 2024/825, which are intended to strengthen consumer protection against misleading environmental advertising, are due to be transposed into the Consumer Protection Act and the Civil Code. The relevant bill has already passed its second reading in the Chamber of Deputies.
 

Stricter rules for “green” claims

Sellers will be permitted to refer to the environmental benefits of their products or services only if such claims are supported by a specific plan with measurable targets. For example, a seller wishing to present its company as climate-neutral by 2030 would have to substantiate the claim with a specific strategy setting out how the target will be achieved.

Such a strategy should be publicly available, and progress in implementing it should be regularly verified by an independent expert. It will also no longer be possible to present an entire product or company as environmentally friendly if the environmental benefit relates only to part of the product or business.

The list of commercial practices that will be prohibited in all circumstances will also be expanded: companies will not be allowed to use sustainability labels that are not based on a certification scheme or established by public authorities. In practice, this will mainly affect private sustainability labels or certifications created and awarded by sellers themselves or by business associations.

Similarly, generic claims such as ‘environmentally friendly’ will not be permitted unless the product has demonstrated outstanding environmental performance. Nor will it be possible to claim that a product or company is ‘climate-neutral’ or ‘carbon-positive’ where the claim is based solely on offsetting its carbon footprint rather than actually reducing it.
 

The end of premature product obsolescence

Another part of the amendment is intended to prevent the premature obsolescence of products. Sellers will not be permitted to withhold information about software updates that may adversely affect the functioning or use of a product, such as a computer or telephone. Nor will they be allowed to present an update as necessary if it merely enhances the product’s functionality.

The rules will also address product durability. The new legislation is intended to prevent practices that compel consumers to replace consumable parts, such as batteries or toner cartridges, prematurely even though replacement is not necessary. It will also prohibit the sale of products with features that artificially limit their lifespan, as well as misleading consumers about product lifespan or durability. Likewise, sellers will be prohibited from claiming that a product is repairable where repair is not in fact possible.

Compliance will be supervised primarily by the Czech Trade Inspection Authority and, in regulated sectors, by the relevant supervisory authorities, such as the Czech National Bank or the Energy Regulatory Office. Fines may amount to up to 4% of a company’s annual turnover; where the seller’s turnover cannot be determined, the penalty may reach CZK 50 million.

Companies should therefore review whether any of their marketing practices constitute prohibited conduct. Misleading consumers entails not only the risk of substantial fines but may also result in other sanctions or a loss of customer trust.