GETTING RID OF GREEN WASHINGRestoring consumer confidence in green claims

Patrycja Gautier21st June 2021

OBSTACLES ON THE WAY TO THE GREEN TRANSITION

WHAT ARE GREEN CLAIMS?

Green claim – any practice of suggesting or otherwisecreating the impression that a good or a service haspositive or no impact on the environment or is lessdamaging to the environment than the competinggoods and services.

CURRENT LEGAL BASIS• Unfair Commercial Practices Directive (UCPD)

• No specific rules on green claims, general principles apply (art. 5,6,7 and 12 UCPD)

• Several practices listed in the UCPD annex could also apply (points 1,2,3,4 and 10)• Specific section on green claims in the UCPD guideline document• National guidelines adopted by some countries

• Green claims need to be clear, specific, unambiguous and accurate

• The following claims can be misleading (if they cause consumers to take a transaction decision that he would not take otherwise):• False / untruthful statements• Claims that deceive (or are likely to deceive) the avarage consumers

• Traders are obliged to submit evidence to the authority, if the claim is challenged (art. 12 UCPD)

CURRENT LEGAL BASIS

Main flaws of the current system:

• Only ex-post & case by case assessments

• No rules on systematic checks

• Long time needed to remove a misleading claim from the market while in the meantime the harm is done

• Practical difficulties for the authorities to enforce the current law:

• No clear cut rules

• Differences in interpretation

• Lack of the specialised knowledge

• Diverging level of enforcement between the EU countries

WHY IS A CHANGE URGENT?

- Consumers more and more aware of the impact of theiractions on the environment and climate change

- 57% of consumers are receptive to environmental claims when making their purchase decision

- 61% of consumers find it difficult to understand which products are truly environmentally-friendly

- Proliferation of green claims on the market- Many green claims are unsubstantiated and potentially

misleading- 45% consumers don’t trust environmental claims

- Consumers are not able to make a distinction between a non-certified and third party certified green label

- Consumer trust is being undermind- Consumers are not able to effectivelly choose the « real »

green products

INSTITUTIONAL FRAMEWORK:

- Green Deal Commununication (December 2019)

- Circular Economy Action Plan (April 2020)

- Upcoming proposal on empowering consumers in the green transition (Q4 2021)

- Upcoming proposal on substantiating green claims

(Q4 2021)

BEUC RECOMMANDATIONS

- A pre-approval procedure for all green claims and labels inspired by the Health and Nutrition Claims Regulation

- An EU-level assessment

- Public Registry with an erga omnes effect

- Blacklist of claims impossible to substantiate

- Obligation to submit the evidence before usinga claim

- Effective market survaillance

For more information see: BEUC position paper

GREEN

LABELS

BEUC recommends:

- Introducing a centralised accreditation scheme for green labels

- A limited list of reputable and well recognisedecolabels should be drawn up that would be exempted from an obligation to apply for accreditation.

- Labels seeking the accreditation would need to fulfil a set of pre-conditions

- Labels that do not meet the accreditation requirement would be prohibited from use.

Thank you for your attention

www.beuc.eupatrycja.gautier@beuc.eu

This presentation is part of an activity which has received funding under an operating grant from the European Union’s ConsumerProgramme (2014-2020).