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July 26, 2024

Sustainable Fashion: Why Blanket Eco-Claims Become Actionable from 2026

Advertising fashion products as "sustainable" sounds straightforward — but it has become one of the highest-risk claims a brand can make. Under existing German competition law (Section 5 UWG) and the incoming EU EmpCo Directive (EU 2024/825, mandatory from 27 September 2026), blanket sustainability claims in the fashion sector are legally vulnerable unless they are backed by concrete, verifiable evidence spanning the entire production chain.

Why "Sustainable Fashion" Is a High-Risk Claim

The term "sustainable" is a complex, multi-dimensional concept. Consumers reasonably understand it to cover ecological impact (materials, water use, carbon footprint), social standards (fair wages, safe working conditions), and product longevity — not just a single favourable attribute such as the use of certified organic cotton.

Section 5 UWG prohibits misleading advertising. Information is misleading when it creates a false impression about the properties of a product. A blanket claim like "sustainably produced shirts" or "our sustainable fashion line" does exactly that if the company cannot substantiate each relevant dimension. Holding a single partial certification (for example, GOTS-certified cotton) does not automatically justify a blanket sustainability statement — it only covers one aspect of a much wider claim.

German courts have increasingly examined this standard closely. The BGH (German Federal Court of Justice) reinforced the principle in I ZR 98/23 (Katjes, 27 June 2024) — a case on "climate neutral" claims — that vague environmental labels on products require comprehensive, transparent disclosure to be lawful. While that case concerned carbon offsetting rather than fashion specifically, the underlying principle applies equally to any product category: the broader the environmental claim, the broader the substantiation required.

What the EmpCo Directive Adds from 27 September 2026

EU Directive 2024/825 (Empowering Consumers for the Green Transition, "EmpCo") introduces two provisions of direct relevance to fashion brands:

**Annex I, new No. 2 UCPD (generic environmental claims):** It becomes a per-se unfair commercial practice to make a generic environmental claim — such as "eco-friendly", "green", "sustainable", "nature-friendly", "environmentally conscious" — without recognised, excellent environmental performance that can be demonstrated and is publicly accessible. There is no grace period or safe harbour for claims already in market.

**Annex I, new No. 4b UCPD (own sustainability labels):** It becomes a per-se unfair commercial practice to display a company-owned sustainability label or trust mark that is not based on an external certification scheme or established by public authorities. This directly catches house-brand badges such as "Our Green Label", "Conscious Collection", or similar proprietary sustainability endorsements that lack independent third-party verification.

Together these rules mean that from 27 September 2026, generic sustainability language in fashion advertising will be presumptively unlawful across all EU Member States unless it meets the new evidential threshold.

The Specific Risks for Fashion and Textile Retailers

Fashion is one of the sectors under closest scrutiny from enforcement bodies and qualified associations entitled to bring legal action under Section 8b UWG. Several features of the industry create structural exposure:

Practical Steps for Fashion Brands

**1. Audit all sustainability language now.** Identify every instance of "sustainable", "eco-friendly", "green", "conscious" and similar terms across website, catalogue, packaging and social channels.

**2. Map claims to evidence.** For each claim, document the specific certification or verifiable fact that supports it. If no adequate evidence exists, the claim must be removed or narrowed.

**3. Specify rather than generalise.** Replace blanket statements with concrete ones: "made from 100 % GOTS-certified organic cotton", "EU Ecolabel certified", "produced in factories audited to SA8000 social standards". This approach is both more credible and legally safer.

**4. Review proprietary labels.** Any house-brand sustainability badge or label must be grounded in an external, accredited certification scheme before 27 September 2026. If that standard cannot be met, retire the label.

**5. Disclose supply chain information.** Transparent disclosure of production countries, key suppliers and third-party audit results converts a vague claim into a verifiable one, directly reducing legal risk.

**6. Document everything.** In the event of a cease-and-desist letter or regulatory inquiry, the ability to produce contemporaneous records of the evidence underlying each claim is essential.

Differentiation from Other Greenwashing Risks

The rules discussed here are specifically about the content and breadth of sustainability claims — what you say and how well you can prove it. They are separate from, but cumulative with, the prohibition on "climate neutral" claims linked to carbon offsetting (Annex I No. 4a UCPD as amended by EmpCo, also mandatory from 27 September 2026). Fashion brands that use offsetting to support a "climate neutral" claim face that additional prohibition on top of the general rules on substantiation.

Proactive review of marketing communications now — before the EmpCo transposition deadline — is the most effective way to reduce legal exposure, avoid enforcement action, and build genuine consumer trust in sustainability credentials.

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