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Sanctions & Rulings

Greenwashing Fines 2026

The EmpCo Directive sets a sanction framework of up to 4% of EU annual turnover for greenwashing. In practice, however, cease-and-desist letters, preliminary injunctions and damages proceedings are the more common consequences. This page classifies the four sanction levels, presents landmark rulings and provides concrete risk-reduction measures.

Last updated: 26 May 2026

Sanction levels

Four sanction levels at a glance

From the cease-and-desist letter to the official fine — the most likely consequences of an infringement, ordered by frequency.

Cease-and-desist letter from a competitor or association

€1,000–5,000 (legal fees + cease-and-desist declaration)

By far the most common sanction in Germany. The Wettbewerbszentrale, IHK, the Federation of German Consumer Organisations and specialised law firms are active here.

Preliminary injunction

Amount in dispute often €25,000–100,000, court and legal fees pro rata

Applied for when the cease-and-desist letter is not accepted or where urgency exists. Common with TV campaigns and high-circulation print advertising.

Main proceedings with damages

Damages to competitors depending on market confusion — rarely below €10,000

More likely with larger companies and systematic infringements. The burden of proof for the amount of damages rests with the claimant.

Fine imposed by the market surveillance authority

Statutory framework up to 4% of EU annual turnover, in practice considerably lower

From 27 September 2026 in cases of systematic or grossly negligent infringements. In Germany this is expected to be enforced by the state authorities.

Landmark rulings

Four rulings from practice

BGH I ZR 98/23

· 2024
Katjes Fassin

Advertising as "climate neutral" without disclosing the offsetting method on the same advertising material infringes § 5 UWG. A landmark ruling — adopted by numerous Higher Regional Courts.

Prevention

Six concrete protective measures

This is how you systematically reduce the risk of cease-and-desist letters and fines — and can present exculpatory documentation in the event of actual proceedings.

Frequently asked questions

FAQ on fines & sanctions

How high are greenwashing fines really?

The EmpCo Directive specifies a statutory maximum of 4% of annual turnover in the affected EU member state. In practice, sanctions for SMEs are typically considerably lower — the actual amount depends on severity, intent and repetition and is set by the competent authority on a case-by-case basis. The legal fees in cease-and-desist cases are more reliably predictable.

Who can send me a cease-and-desist letter?

Competitors, qualified business associations (Wettbewerbszentrale, IHK), consumer protection associations (e.g. Deutsche Umwelthilfe, vzbv) and, from 2026, the market surveillance authorities as well. A cease-and-desist letter typically costs €1,000–5,000.

Are there any concrete examples of fines yet?

The official fines under EmpCo only take effect from 27 September 2026. Courts have already imposed damages and cease-and-desist obligations today (BGH Katjes I ZR 98/23, OLG Frankfurt). The financial impact today is: legal fees, damages and the devaluation of advertising.

Am I also affected if I only sell through third-party partners?

Yes, provided you are responsible for advertising directed at end consumers. Anyone who, as a manufacturer, advertises with environmental claims is also liable for the advertising of their resellers — manufacturer materials (data sheets, images, copy) must therefore be compliant.

What happens on a first infringement?

As a rule, a cease-and-desist letter is sent first, demanding that the practice be stopped and the legal fees reimbursed. Anyone who submits the cease-and-desist declaration and removes the claim can usually conclude the matter cheaply. Anyone who ignores or delays risks a preliminary injunction with significantly higher costs.

How can I reduce the risk?

First: a complete audit of your own communications. Second: an evidence database in which the source for each claim is recorded. Third: external legal review of new campaigns. Fourth: monitoring your own website for new risky phrasings. An automated solution such as Empcora handles points 1 and 4.

Further reading

Explore the topic in depth

Not legal advice

Empcora provides automated indications based on the EmpCo Directive (EU 2024/825) and the unfair-competition / consumer-protection law transposing it in your jurisdiction. These are a compliance indication and do not replace individual legal advice. No liability is assumed for the correctness, completeness or up-to-dateness of the analysis results. The final legal assessment rests with your law firm or an admitted lawyer.