The End of “Eco Greenwashing”

23. April 2026

“Eco-friendly”, “green” claims in advertising set to fall out of favor

Greenwashing under pressure:
General environmental claims that cannot be substantiated will soon no longer be permitted in advertising. Self-created environmental labels are also coming under increasing scrutiny.

A new law targeting misleading packaging has only just come into force: since April 1, retailers must clearly indicate when a product’s quantity is reduced while the packaging size remains the same and the price is not adjusted accordingly—aimed at protecting consumers from “shrinkflation.”

While experts are still debating whether these rules go too far under EU law, the next regulatory step is already underway—this time targeting potentially misleading environmental claims.

Under the upcoming framework, companies will no longer be allowed to advertise products using environmental statements unless they can substantiate them. Although misleading advertising has long been prohibited, existing case law has already addressed both greenwashing and shrinkflation. For example, the Higher Regional Court of Vienna has ruled against deceptive packaging practices, and the German Federal Court of Justice has deemed the term “climate-neutral” misleading if not clearly explained.

General claims to be banned

In the future, a range of environmental claims will be placed on a “blacklist” and prohibited per se.
As Martina Stranzinger, partner at PHH, explains:
“The likelihood of deception will no longer need to be assessed on a case-by-case basis, nor whether consumer decisions are actually influenced.”

This will make enforcement significantly easier.

Affected are broad terms such as “sustainable,” “eco,” or “environmentally friendly” unless they are clearly specified or backed by recognized certification. Claims that refer to an entire product or company—while only applying to part of it—will also be problematic. For example, packaging cannot be labeled “recyclable” if individual components such as lids, labels, or adhesives are not.

Advertising with self-evident features—such as legally required deposit systems—will also be prohibited. Likewise, only official or certified environmental labels (e.g., government-backed or recognized schemes) will be allowed. Privately created labels or potentially even established retail brand labels could face scrutiny under stricter interpretation.

New rules from autumn 2026

These developments are based on the EU’s Empowering Consumers Directive (EmpCo, EU 2024/825), which will apply from September 27, 2026. Although implementation into Austrian law is still pending, the EU-level blacklist has already been published.

For companies, this means one thing:
greater transparency, stricter standards—and far less room for vague green claims.

Published in Die Presse on 23 April 2026
Author: Christine Kary