GREENWASHING

Greenwashing: New Rules for Companies’ Environmental Claims

greenwashing-alert

BDO Legal | Consumer Protection

Greenwashing is not just a problem for major brands. It affects every company that communicates “green” benefits

Environmental claims now appear almost everywhere – on packaging, websites, advertisements, in product names and on social media. Companies naturally want to communicate their more responsible production methods, lower carbon footprint or more sustainable solutions. However, the line between factual information and misleading communication may not always be clear.

Greenwashing is therefore more than a reputational issue. New rules expressly regulating environmental claims, sustainability labels and the conditions for their verification will take effect in Slovakia on 27 September 2026.

BDO Legal examines this topic in detail in the publication Greenwashing: Where Green Marketing Ends and Legal Risk Begins, which is available for download at the end of this article. In the following interview, Lukáš Vozár, Associate at BDO Legal, explains its practical implications: which businesses are affected by the new rules, which claims tend to present the greatest risks and why companies should review their “green” communications now.



When does a company enter the realm of environmental claims?

When it states or implies in its commercial communications that its product, service, brand or the company itself has a positive impact on the environment, causes less harm than a comparable alternative, has no negative impact or is gradually reducing its impact.

Importantly, this is not limited to text used in advertising. An environmental claim may take the form of a product name, a company’s own “eco” label, packaging, visuals featuring natural imagery, a social media post or an influencer’s communication.

“Companies often do not perceive a particular visual or product name as a legally relevant claim. From a consumer’s perspective, however, it may create a clear impression that the product or brand is more environmentally friendly. This impression must also have a genuine and verifiable basis.”
 

Lukáš Vozár, Associate, BDO Legal

Which claims present the greatest risk?

The most problematic claims tend to be broad terms with no clearly defined meaning, such as “green”, “eco-friendly”, “environmentally friendly” or “climate neutral”.

A problem may also arise when a company highlights one positive feature while its communication creates the impression that the product delivers an overall environmental benefit. One example is a product with recyclable packaging that is described as “eco-friendly” without any further qualification. Such a claim may obscure other significant impacts associated with production, the materials used, transportation or the product’s entire life cycle.

Comparative claims such as “lower-emission” or “more sustainable than a conventional solution” also require particular attention. The company must be able to explain what the product is being compared with, which data support the comparison and whether the comparison is clear to the customer.

Will environmental claims be subject to regulatory scrutiny?

Yes. Reviews may be initiated by a supervisory authority, conducted as part of targeted inspections of online shops and advertising, or prompted by a complaint from a consumer or consumer organisation. Competitors may also play a significant role, particularly if they believe that another business is gaining an advantage through unsubstantiated claims.

Such inspections are not merely hypothetical. The Slovak Trade Inspection participated in the European Sweep 2024 enforcement action, which focused on online traders selling second-hand goods. The review found that some environmental claims were insufficiently substantiated, while others raised suspicions of false, misleading or unfair commercial practices.

Cross-border enforcement is also relevant for businesses operating in several EU countries. Advertising published on a foreign-language version of a website may still fall within the reach of authorities in the country where the company is established.

What do international cases show?

Slovak case law in this area is still developing. However, decisions from other jurisdictions provide relevant guidance.

An “eco-friendly” coach without a clear explanation

The German Federal Court of Justice considered advertising by a long-distance coach operator that used claims such as “eco-friendly”, “climate-friendly” and “the most environmentally friendly means of transport”. The Court confirmed that such broad and comparative claims are subject to strict scrutiny. It also emphasised that information about CO₂ offsetting must be specific and transparent for consumers.

A QR code may not replace an explanation in the advertisement

In another German case, the court considered a confectionery manufacturer’s claim that its products were “climate neutral”. The question was not merely whether the company had made the relevant information available on its website. The court examined whether the advertisement itself clearly explained whether the company was reducing its emissions or merely offsetting them. A link to a website or a QR code may not always replace a clear explanation provided directly in the advertisement.

A sustainable name is not enough if the product tells a different story

The Australian case involving Mercer demonstrated that financial products can also give rise to greenwashing concerns. Investment options were presented as sustainable and as excluding certain industries, while their actual portfolios included investments in companies operating in those sectors. The court imposed a penalty of AUD 11.3 million.

The common denominator in these cases is the gap between what the marketing promises and what the company can actually substantiate.



Can a certificate or label help a company?

Yes, but a certificate does not automatically validate every statement used in marketing communications. Responsibility for the content of a claim remains with the company using it.

If a product or process is certified, the communication must accurately reflect the scope of that certification. For example, a company should not infer from the certification of a single raw material that the entire product or brand is sustainable.

The new rules also introduce the concepts of sustainability labels and certification schemes. They emphasise transparent rules, publicly accessible conditions and independent verification.

What should companies review now?

The first step is to map all environmental claims used by the company – on its websites, in campaigns, on packaging, in presentations, on social media and in sales materials.

For each claim, companies should verify:

  • what exactly it states,
  • whether customers are likely to understand it unambiguously,
  • which evidence or supporting documentation substantiates it,
  • whether that evidence is up to date,
  • whether the claim omits any material context,
  • who within the company is responsible for approving and regularly reviewing it.

“Greenwashing should not discourage companies from communicating the genuine environmental measures they have taken. It should encourage them to communicate those measures accurately, clearly and in a way that they can also defend from a legal perspective.”
 

Lukáš Vozár, Associate, BDO Legal

BDO Legal Publication

Greenwashing: Where Green Marketing Ends and Legal Risk Begins

Download the BDO Legal publication for a more detailed explanation of the new rules, sustainability labels and the legal consequences of greenwashing. The publication is available through the form below.