Competitors who gain an unfair market advantage with “carbon neutral” or “sustainable” can be the subject of a cease-and-desist. From 27 September 2026, the EmpCo Directive creates a harmonised European basis for this for the first time. But: a cease-and-desist is always a game of risk, too.
This page shows when a competitor cease-and-desist makes sense, which prerequisites must be met, what the procedure looks like — and which four risks you should absolutely be aware of before you send a formal warning.
A competitor cease-and-desist is not worthwhile for trivial infringements. It is worthwhile when a direct competitor systematically gains market share through unfair environmental advertising — and this produces a measurable revenue effect to your detriment. Classic constellations: a comparable product at the same price advertises with “carbon neutral” and gains significantly in listings, or a competitor dominates SEO rankings with search terms such as “sustainable” — which they cannot themselves substantiate.
However, not every greenwashing observation justifies a cease-and-desist. Anyone who proceeds without clean standing to sue or with an insufficient evidentiary basis risks a settlement or trial outcome to their own disadvantage. A legally sound cease-and-desist is always a procedure accompanied by legal counsel — not a marketing measure.
Before any competitor cease-and-desist, your own advertising communications are checked for identical risks. Anyone who advertises with “carbon neutral” themselves and then warns others risks an immediate counter cease-and-desist — with double the costs and full reputational damage.
These four prerequisites must be met without any gaps. If one of them is missing, the cease-and-desist fails — either upfront on the recoverability of costs or at the latest in court proceedings.
You must be a competitor within the meaning of § 8 UWG. Specifically: you offer goods or services that are in factual, geographic and temporal competition. General membership of an industry is not enough — what matters is interchangeability from the customer’s perspective.
The infringement must be current and identifiable in the advertising. Mere suspicions or outdated cached content are unsuitable. Recommendation: have the objected content notarially archived to secure the evidence.
The infringement must be appreciable, i.e. capable of influencing the market behaviour of consumers. For greenwashing terms such as “carbon neutral” without evidence, materiality is regularly established under BGH case law.
Anyone who greenwashes themselves will regularly be pointed to their own infringements during proceedings. The standard defence is the counter cease-and-desist. Before any cease-and-desist, therefore scan your own communications for identical risks.
A typical course of a competitor cease-and-desist from the first observation to the preliminary injunction.
Document your own competitive position, define the infringement, and cross-check your own advertising.
Time-stamped screenshots, URL archiving via web.archive.org, and notarial certification where appropriate.
A firm specialising in competition law. Discuss fee clarity, cost risk and chances of success openly.
A letter with the objection, a pre-drafted undertaking, a deadline (5 to 10 business days) and a statement of costs.
Accept the undertaking, renegotiate, or apply for a preliminary injunction.
A cease-and-desist can also backfire. These four risks are the most frequently underestimated — and the biggest sources of cost for carelessly filed warnings.
After receiving the cease-and-desist, the warned party can file a negative declaratory action at the court of their choice. This means you lose the choice of venue.
A growing number of companies immediately check the warning party for their own infringements. Anyone who is not clean themselves gets warned in return — and it backfires.
If the cease-and-desist claim is rejected in court, the warning party bears the full cost of proceedings plus their own legal fees. With amounts in dispute around 50,000 euros, risks arise in the five-figure range.
Cease-and-desist letters often become public. Anyone perceived as a “cease-and-desist competitor” loses goodwill with customers, partners and media — especially in an ESG-minded environment.
A “warn or not” decision matrix, a sample cease-and-desist letter, an evidence-securing checklist and a cost calculation.
Download PDFBefore you issue a cease-and-desist, check your own communications. Our free scanner finds prohibited terms in under 30 seconds.
