Stricter greenwashing rules in the EU: how implementation of the EmpCo Directive will lead to heightened scrutiny

From the 27 September, businesses must comply with new and stricter requirements when making green claims in their commercial communications. Although several competition authorities had already investigated a number of the practices being added to the blacklist, the new EU rules effectively adopt a zero-tolerance approach to such practices.

1. Legal background

Hungary, like all EU Member States, introduced stricter rules on sustainability claims in commercial communications from 27 September 2026. The changes implement the EU EmpCo Directive, adopted by the European Parliament and the Council in early 2024 to strengthen consumer protection against misleading environmental and sustainability-related claims. Hungary’s transposition law was promulgated on 16 December 2025, leaving businesses just over nine months to prepare.

The transposition law originally included a transitional provision under which the new rules would apply only to products manufactured after the date of entry into force, allowing pre-existing stock to remain on the market without complying with the new requirements. However, the Hungarian Government submitted a legislative proposal to repeal that transitional provision and the Hungarian Parliament subsequently adopted the amendment. As a result, the transitional provision did not enter into force and, from 27 September 2026, all products on the market, regardless of their date of manufacture, must comply with the new rules.

As part of the transposition, the relevant Hungarian law (the Unfair Commercial Practices Act) introduces express statutory definitions for key concepts, including environmental claim, general environmental claim, sustainability label and certification scheme. Each definition carries specific conditions that must be met for the relevant claim or label to be used lawfully.

The UCP Act lists commercial practices that are automatically considered unfair. The latest amendments added 12 new sustainability-related items to this list. This means the GVH does not need to assess each case individually or prove that the practice actually influenced the consumer’s decision. It need only establish that the practice falls within one of the listed prohibited practices.

2. New items on the blacklist

The newly added sustainability-related practices cover classic green claims as well as sustainability labels, software-update messaging and statements about product durability and repairability. The main categories are as follows:

(i) Sustainability labels and environmental claims

Sustainability labels must be based on a certification scheme or introduced by a public authority. It is per se unfair to display a sustainability label that satisfies neither condition. It is also prohibited to make a general claim about a product’s environmental friendliness where the business cannot demonstrate recognised outstanding environmental performance relevant to the claim.

The new rules are not limited to textual claims. Visual elements that convey an equivalent green message, such as green colour schemes, nature imagery (e.g. meadows, forests or animals in natural settings) or other design elements suggesting environmental friendliness, may also be caught where they create an overall impression of sustainability that cannot be substantiated.

(ii) Carbon neutrality claims and mandatory requirements

Carbon offsetting cannot be used as the basis for certain environmental claims. A business may not claim, on the basis of carbon offsetting, that a product is neutral, has reduced greenhouse-gas emissions or has a positive greenhouse-gas impact.. It is also prohibited to present requirements imposed by EU legislation or national law and applicable to all products within the relevant product category on the EU market, as a distinguishing feature of a business’s offering.

(iii) Software updates, durability and repairability

The new rules also address product functionality and longevity. It is per se unfair to present a software update as necessary where it merely improves functionality rather than addressing a technical necessity. It is likewise prohibited to present goods as repairable when they are not or to encourage consumers to replace or refill consumables earlier than technically necessary. These prohibitions extend beyond traditional green claims and address software-update transparency, product durability and repairability.

(iv) Expanded pre-contractual information obligations for traders

In Hungary, the transposition also amended the law on pre-contractual consumer information. Where the manufacturer makes the relevant information available, traders (“kereskedő”) must now inform consumers of the following before the conclusion of a contract:

• the existence of a free-of-charge commercial guarantee of durability exceeding two years provided by the manufacturer;
• the minimum period during which software updates will be supplied for digital elements of the product; and
• the product’s repairability score or, where no repairability score is available, information on the availability and estimated cost of spare parts, together with any limitations on repairability.

Certain categories of this information must be displayed prominently using a harmonised EU notice or label format.

3. Key considerations for businesses

The new rules apply across all product categories and industries. As a result, all consumer-facing commercial communications should be reviewed as a matter of priority. Businesses in the following sectors are likely to face particularly heightened exposure: FMCG, fashion and textiles, e-commerce, energy, technology and operators of sustainability certification and labelling schemes.

• Every sustainability label must be based on a recognised certification scheme or introduced by a public authority.
• Vague environmental claims such as “eco-friendly,” “green,” or “sustainable” must be supported by demonstrably outstanding environmental performance.
• Visual elements such as green colour schemes or nature imagery may also be problematic if they create an unsubstantiated impression of sustainability.
• Claims of carbon neutrality, reduced emissions or climate positivity based solely on carbon offsetting are now prohibited.
• Beyond green claims, businesses should also review software-update messaging and claims concerning repairability, durability and consumables.

There is no grace period. The rules apply immediately upon entry into force. Businesses should assess existing inventory without delay and plan any necessary adjustments.

The GVH has focused actively on green claims in recent years and recommends that businesses seek advice from legal advisers experienced in this area and review their environmental and sustainability-related communications carefully.