Publications

29 June 2026

Greenwashing – Misleading Ecological Advertising: Regulatory framework and emerging legal risks in the business world

The growing relevance of environmental, social, and governance (ESG) criteria in economic activity has led many companies to strengthen the communication of their sustainability credentials. However, the use of environmental claims that are inaccurate, insufficiently substantiated, or likely to mislead consumers and investors has placed the phenomenon of greenwashing at the center of European regulatory attention.

The European and national legal frameworks did not contain a regime specifically dedicated to combating greenwashing. The assessment of these practices was carried out based on general rules of consumer protection, advertising, and unfair competition, namely through the prohibition of misleading commercial practices and the requirement for truthfulness in advertising messages. Although these instruments allowed for the sanctioning of certain behaviors, their application did not always ensure a uniform level of protection, nor did it provide sufficiently objective criteria for evaluating environmental claims.

In recent years, the European Union has been developing a more demanding regulatory framework, aligned with the objectives of the European Green Deal and the transition to a sustainable economy. In this context, Directive (EU) 2024/825—known as the Empowering Consumers for the Green Transition Directive—is particularly relevant, as it strengthens protection against commercial practices likely to mislead consumers regarding the environmental performance of products, services, or economic operators.

Among other measures, the new framework restricts the use of generic environmental claims—such as "ecological", "green" or "environmentally friendly"—when they are not supported by adequate and recognized evidence.

Furthermore, the proposal for a Green Claims Directive, currently under discussion at the European level, could introduce additional requirements for substantiation, transparency, and prior verification of environmental claims. If approved under the terms currently known, companies must demonstrate, based on robust and recognized scientific evidence, the accuracy of the environmental statements used in their commercial communication.

From a legal risk perspective, this regulatory evolution is particularly relevant.

In addition to the potential application of administrative fines and sanctions by competent authorities, the dissemination of misleading environmental claims could trigger litigation brought by consumers, consumer protection associations, competitors, or investors. In certain contexts, the relevance of these practices for the purposes of civil liability for damages caused to third parties cannot be excluded either.

In this scenario, it is advisable for companies to conduct a preventive review of their communication and marketing strategies, ensuring that all environmental claims are adequately documented and legally sustainable. Compliance with the established regulations in this matter is no longer just a question of image, becoming increasingly an essential component of legal and corporate risk management.