Directive on misleading claims EU 2024/825

Currently, EU requirements mandate the substantiation of any claims about a product or service, including environmental claims. However, the existing rules are neither specific nor strict enough, allowing companies to make vague or misleading claims without consequences. Directive 2024/825 aims to establish standards, and guidelines to help companies comply with the rules and for authorities to enforce them effectively.

Implementation of Directive 2024/825

In March 2023, the European Commission proposed Directive 2024/825, which entered into force on March 26, 2024, and must be implemented in national regulation by March 27, 2026.  

This directive amends Directive 2005/29/EC (unfair business-to-consumer commercial practices) and Directive 2011/83/EU (consumers rights), focusing on empowering consumers for the green transition by enhancing protection against unfair practices and providing better information.  

It sets out common criteria that businesses must meet to make compliant environmental claims about their products. These criteria apply to a wide range of claims, including waste reduction, energy efficiency, water conservation, and carbon footprint.

Goals of the Green Claims Directive

The directive is based on three primary goals:

• Environmental Transition: Increase the level of environmental protection and contribute to accelerating the green transition towards a circular, clean, and climate-neutral economy in the EU.

• Consumer Protection: Protect consumers from greenwashing and enable them to contribute to the green transition by making informed purchasing decisions.

• Legal Certainty: Improve legal certainty and standardize the substantiation of environmental claims, giving credit to businesses that genuinely increase their environmental sustainability.

Common Criteria for Environmental claims

Several rules will ensure that claims are clear and defined by the same standards. Claims or labels using scoring of the product’s overall environmental impact will no longer be permitted unless set in EU rules. Comparisons with other products must be based on equivalent information and data.  

The key criteria include:

• Scope: Whether the claim pertains to the whole product, a part of it, or specific aspects.

• Compliance: Whether the claim meets legal requirements.

• Comparative performance: Information on whether the product performs significantly better in environmental impact compared to other products in the same category.

• Significant Impact: Significant environmental impacts related to climate change, water and marine resource use, pollution, biodiversity, animal welfare, etc.

These criteria aim to ensure that consumers have access to clear and reliable information, adhering to harmonized standards.

Impacts of Directive 2024/825 on the Cosmetic Industry

Prohibited Claims in Cosmetics

Directive (EU) 2024/825 explicitly forbids certain misleading claims on cosmetic artworks, such as:

• Generic claims such as “environmentally friendly”, “eco-friendly”, “green”, “nature’s friend”, “ecological”, “environmentally correct”, “climate friendly”, “gentle on the environment” etc.

• Climate-related claims like “energy efficient”, “biodegradable”, “biobased”, “climate neutral”, “CO2 neutral certified”, “carbon positive”, “reduced climate impact” and ‘limited CO2 footprint” or similar statements that suggest or create the impression of excellent environmental performance or suggest that the consumption of that product does not have an environmental impact

• Claims about the entire product or business when it concerns only a certain aspect. For example, “made with recycled material” gives the impression that the entire product is made of recycled material, when in fact only the packaging is made of recycled material,

• Implicit claims using colors or images that constitute generic environmental claims.

This list is not exhaustive but provides a clear picture of what is acceptable and what is not in terms of environmental branding.

Specific case related to the labels

• Eco-labeling Standards: The directive mandates clear labeling of cosmetic products, including information on their environmental footprint, and recyclability, empowering consumers to make informed choices and discouraging greenwashing practices.

• Self-made “sustainability labels” are no longer allowed. These are defined as voluntary trust marks or quality marks made by the company itself without third-party verification. The directive aims to ensure that any such labels are verified by third-party certification schemes that are transparent and open to all traders willing to comply with the requirements.

Certification Schemes

Finally, the “certification scheme” means a third-party verification scheme that certifies that a product, process or business complies with certain requirements, that allows for the use of a corresponding sustainability label, and the terms of which, including its requirements, are publicly available and meet the following criteria:  

• The scheme is open under transparent, fair, and non-discriminatory terms to all traders willing and able to comply with the scheme’s requirements,

• The scheme’s requirements are developed by the scheme owner in consultation with relevant experts and stakeholders.

Enforcement and Penalties

The directive serves as a safety net for all sectors where environmental claims or labels are unregulated at the EU level. It does not intend to alter existing or upcoming sector-specific regulations. Instead, existing communication and evaluation standards in other Union legislations will take precedence. Notably, some specificities included in the initial proposal were omitted in the final directive, placing more emphasis on member states' responsibilities to enforce the directive within their national legal frameworks.

Enforcement Mechanisms

Each EU member state is responsible for incorporating the directive into their local laws. National authorities are tasked with enforcing the new criteria and ensuring compliance. This decentralized approach requires member states to adapt the directive's requirements to their specific regulatory contexts, ensuring that businesses across the EU adhere to a consistent standard.

Adaptation and Compliance

While the directive itself does not prescribe specific penalties for non-compliance, it allows member states the flexibility to establish appropriate enforcement measures within their jurisdictions. This may include legal actions or other measures deemed necessary by national authorities to ensure that companies adhere to the directive's standards. The removal of explicit penalties in the final directive highlights the importance of local enforcement and the role of national laws in ensuring compliance.  

Conclusion

The collaborative efforts of institutions such as the European Commission are pivotal in advancing the EU's green directives. Frameworks such as the European Green Deal, ESPR, and Directive (EU) 2024/825 collectively drive the cosmetics industry towards greater environmental accountability and transparency.  

Adhering to these directives helps mitigate environmental impact while ensuring consumer trust through rigorous verification of environmental claims, benefiting both the environment and the credibility of the cosmetics sector. It will also help to achieve the EU's goal of climate neutrality by 2050, as outlined in the European Climate Law.

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