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Legal problems caused by green advertising

Green advertising — claims such as 'sustainable', 'eco', or 'climate-neutral' — must not be misleading. A sustainability claim must be accurate, concrete, and substantiated. Vague or unproven green claims (greenwashing) can constitute unfair trade practices, requiring action by the...

Published on August 30, 2022 by MKBjuristen.nl
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Green advertising—claims such as 'sustainable', 'eco', or 'climate-neutral'—must not be misleading. A sustainability claim must be accurate, concrete, and substantiated. Vague or unproven green claims (greenwashing) can constitute unfair trade practices, resulting in action by the regulator and competitors.

Why green claims are a sensitive issue

Consumers are increasingly opting for sustainability and relying on what the seller says without verifying it themselves. Precisely for this reason, they must be able to trust that a green claim is accurate. An incorrect or exaggerated sustainability claim misleads the consumer and is therefore prohibited.

When is a green claim misleading?

A claim is easily misleading if it is vague, absolute, or unsubstantiated. Terms such as 'green', 'environmentally friendly', or 'climate neutral' without explanation or evidence, or which apply to only a small part of the product while giving the impression of the entire product, can be considered unfair trade practices.

Make claims accurate and concrete

If you want to communicate sustainability, do so concretely and with substantiation: explain exactly what is sustainable, why, and with what evidence (such as a reliable certification mark or measurable data). Avoid absolute claims that you cannot substantiate. This prevents deception and actually strengthens trust.

The risks of greenwashing

If you do not comply with the rules, the regulator (ACM) can take action with measures and fines, and competitors or consumers can hold you accountable. In addition to legal consequences, greenwashing leads to reputational damage if it comes to light. Honest, substantiated communication therefore pays off twice over.

Frequently Asked Questions

May I call my product 'sustainable'?

Only if it is accurate and substantiated. A vague or unproven claim can be misleading and constitute an unfair trade practice.

What makes a green claim misleading?

Vagueness, absolute assertions without evidence, or a claim that concerns only a small part while giving the impression of the entire product.

What are the risks of greenwashing?

Action by the ACM involving fines, claims from competitors or consumers, and reputational damage.

Want to have your sustainability claims assessed?

Our legal experts review your green advertising. View our marketing and advertising lawteam, our legal assistance, or schedule a free consultation.

Please note: an article provides general information, but your legal situation may turn out differently.

A contract, conflict, or legal risk must always be assessed based on the facts, documents, evidentiary position, and interests. Are you in doubt? Have your situation assessed before you act.

Legal question regarding this article?

A blog provides explanation, but your situation often requires a concrete legal choice. MKB Juristen helps entrepreneurs with contracts, terms and conditions, GDPR documents, employment documents, disputes, and customized legal solutions.

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SME Lawyers at the Chamber of Commerce Source: Chamber of Commerce 2019
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