The draft of the Third Law Amending the Act Against Unfair Competition (UWG) implements the EU EmpCo Directive, which establishes rules for consumer information and sustainability labels. The UWG protects companies and consumers from misleading advertising and unfair business practices. The DIHK warns that the implementation partially exceeds EU requirements and may result in legal uncertainties, additional bureaucracy, and higher costs for businesses. Small and medium-sized enterprises (SMEs) that use sustainability labels or offer products with specific environmental indications are particularly affected.
Key points at a glance
- National implementation of the EmpCo Directive partially exaggerated, more regulation than required by the EU.
- Unclear definitions for sustainability labels, general environmental claims and performance.
- New fines and claims for damages could significantly impact companies.
- Implementation only partially practical: the B2B sector and sales possibilities not adequately considered.
- Significant bureaucratic effort for certification and verification of sustainability statements.
Background
The EU EmpCo Directive (2024/825) obliges member states to provide consumers with clear and verifiable information on ecological and social product characteristics. The Federal Government's draft bill provides new definitions for sustainability labels, general environmental statements, and recognized outstanding environmental achievements. The UWG serves as national legislation to implement the directive and regulates fines, claims for damages, and bans on misleading advertising. The DIHK criticizes that numerous national regulations exceed the directive's requirements, contain ambiguous terms, and create legal uncertainty. In particular, there are no clear specifications for distinguishing between general environmental statements and sustainability labels nor clear regulations for guarantee marks. Additionally, the implementation deadlines set are very tight from a business perspective.
Key points for companies
- Pay attention to clear distinctions between general environmental statements and sustainability labels to minimize legal risks.
- Examine whether existing guarantee marks will need certification in the future.
- Plan adjustments to packaging and product information in a timely manner – lead times can amount to 6–12 months.
- The sale of already produced goods and packaging should be possible within 12 months after enactment, thereafter indefinitely.
- There is no direct consumer protection demand for B2B products; still, companies should document the application of the new regulations.
Download
Association Paper on the UWG Amendment Law (PDF, 585 KB) (only available in German)
- Relevant in topic:
- Recht
- Key areas:
-
- Umwelt
- Handel
Released 25.07.2025
Modified 12.03.2026
Contact
Hildegard Reppelmund
Head of Unit Competition Law, Antitrust Law, Public Procurement Law, Corporate Criminal Law | Lawyer (Syndicate Lawyer)