European Commission proposes new consumer green rights and ban on greenwashing

The European Commission (EC) is proposing to update the EU consumer rules to “empower” consumers for the green transition. The EC said the updated rules will ensure that consumers can make informed and environment-friendly choices when buying their products. Consumers will have a right to know how long a product is designed to last for and how, if at all, it can be repaired. The rules will also strengthen consumer protection against “untrustworthy or false” environmental claims, banning ‘greenwashing’ and practices that mislead consumers about the durability of a product, said the EC. The EC added that once implemented, consumers will have access to remedies in the event of breaches, including through the collective redress procedure under the Representative Actions Directive. Risk and insurance managers at Europe’s manufacturers will have to take a close look at these proposals to ensure that their products and marketing fit with the new rules or face potentially costly and reputation damaging class actions. EC vice-president for values and transparency, Věra Jourová, said: “We are supporting consumers, who increasingly want to choose products that last longer and can be repaired. We must ensure that their commitment is not hampered by misleading information. We are giving them strong new tools to make informed choices and increase sustainability of the products and our economy, with this proposal.” EC commissioner for justice, Didier Reynders, added: “If we do not start consuming more sustainably, we will not achieve our European Green Deal goals – it is as simple as that. While most consumers are willing to contribute, we have also seen an increase in ‘greenwashing’ and early-obsolescence practices. To become real actors in the green transition, consumers must have a right to information to make sustainable choices. They must also be protected against unfair commercial practices, which abuse their interest in buying green.” Under the plan, the EC is proposing to amend the Consumer Rights Directive to oblige traders to provide consumers with information on products’ durability and reparability: Durability: Consumers must be informed about the guaranteed durability of products. If the producer of a consumer good offers a commercial guarantee of durability of more than two years, the seller must provide this information to the consumer. For energy-using goods, the seller must also inform consumers when no information on a commercial guarantee of durability was provided by the producer. Repairs and updates: The seller must also provide relevant information on repairs, such as the reparability score (where applicable), or other relevant repair information made available by the producer, such as the availability of spare parts or a repair manual. For smart devices and digital content and services, the consumer must be also informed about software updates provided by the producer. “Producers and sellers will decide on the most appropriate way to provide this information to the consumer, be it on the packaging or in the product description on the website. In any case, it must be provided before the purchase and in a clear and comprehensible manner,” stated the EC. On greenwashing and planned obsolescence, the Commission is also proposing several amendments to the Unfair Commercial Practices Directive (UCPD). First, the list of product characteristics about which a trader cannot mislead consumers is expanded to cover the environmental or social impact, as well as the durability and reparability. Then, it also adds new practices that are considered misleading after a case-by-case assessment, such as making an environmental claim related to future environmental performance without clear, objective and verifiable commitments and targets, and without an independent monitoring system. It also amends the UCPD by adding new practices to the existing list of prohibited unfair commercial practices, the so-called ‘blacklist’. The new practices will include, among others: Not informing about features introduced to limit durability Making generic, vague environmental claims where the excellent environmental performance of the product or trader cannot be demonstrated Making an environmental claim about the entire product when it really concerns only a certain aspect of the product Displaying a voluntary sustainability label that was not based on a third-party verification scheme or established by public authorities Not informing that a good has limited functionality when using consumables, spare parts or accessories not provided by the original producer. The EC said these amendments aim to ensure legal certainty for traders but also to facilitate enforcement of cases related to greenwashing and early obsolescence of products. “Furthermore, by ensuring that environmental claims are fair, consumers will be able to choose products that are genuinely better for the environment than their competitors. This will encourage competition towards more environmentally sustainable products, thus reducing negative impact on the environment,” said the EC. The Commission's proposals will now be discussed by the Council and the European Parliament. Once adopted and transposed into the member states’ national legislation, consumers will be entitled to remedies in the event of breaches, including through the collective redress procedure under the Representative Actions Directive.

European Commission proposes new consumer green rights and ban on greenwashing

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