On March 26th, 2024, the European Union, in its effort to empower consumers for a greener transition, implemented Directive (EU) 2024/825, also known as the Empowering Consumers Directive (ECD). This directive aims at fostering sustainable consumption patterns and tackles various misleading commercial practices, like greenwashing, that hinder consumers’ ability to make informed choices regarding the environmental and social impact of products. With its focus on transparency, reliability, and consumer protection, the ECD marks an important moment in EU’s commitment to sustainability.
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Scope of the Directive (EU) 2024/825
One of the key elements of the ECD is to ensure that consumers have access to clear and relevant information that enables them to make sustainable purchasing decisions. The directive targets practices such as misleading environmental claims, and non-transparent sustainability labels, by amending the provisions of the Unfair Commercial Practices Directive (UCPD) and the Consumer Rights Directive (CRD) accordingly. With the introduction of specific rules in consumer law, the ECD aims to empower national bodies to effectively address these practices, and, at the same time, safeguard consumers’ interest in sustainable products.
ECD is set to be transposed into the law of all EU-Member States by March 27, 2026, and applied from September 27, 2026.
Prohibiting Misleading Claims
The prohibition of misleading practices related to a product’s environmental or social characteristics, is one of the Directive’s focus subjects. This includes ensuring that consumers are not misled about aspects of a product such as durability, reparability, or recyclability through the overall presentation of it on the shelf. Additionally, the directive addresses misleading advertising, prohibiting claims that are irrelevant or not directly related to the product’s features, such as labeling bottled water as “gluten-free” or promoting paper sheets as “free from plastic”.
Preventing Greenwashing and Ensuring Environmental Accountability
Furthermore, the directive addresses the deceptive practice of making environmental claims that are not representative of the entire product or business. By prohibiting claims that exaggerate the environmental benefits or impact of a product or business, ECD aims to prevent greenwashing and promote truthful and accurate information for consumers.
This directive also prohibits claims based on the offsetting of greenhouse gas emissions, emphasizing the need for genuine efforts to reduce environmental impact rather than relying solely on offsetting measures. By tackling misleading claims of environmental neutrality or positivity, the directive promotes taking greater accountability and responsibility in environmental messaging.
Enhancing Consumer Awareness and Rights
ECD also introduces changes in the provided information of a product, before its purchase, ensuring that consumers receive clear information about its durability and potential repair options, before buying it. The aforementioned includes details about a product’s warranty, any provided repair services and eco-friendly delivery choices, without any extra charges to the consumer. Lastly, to help consumers know their rights, the directive requires easy-to-understand labels and notices about guarantees.
Implementing a Certification System
Moreover, ECD emphasizes the importance of credible sustainability labels established by public authorities. By prohibiting the use of sustainability labels not based on certification schemes or public authorities’ standards, the directive aims at enhancing consumer trust in environmental claims by producers. Examples of such recognized labels include those awarded in compliance with EU Regulations (EC) 1221/2009 and (EC) 66/2010, ensuring consistency and reliability in sustainability labels across Europe.
Conclusion
Directive (EU) 2024/825 marks a significant step in EU’s efforts of empowering consumers to make more well-informed and conscious decisions. By addressing misleading commercial practices and promoting transparency and reliability in environmental claims and sustainability labels, the directive enables consumers to make informed choices and encourage sustainable purchasing decisions.
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