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- In the Chamber’s view, the new rules on environmental claims must not lead to the destruction of high-quality goods
In the Chamber’s view, the new rules on environmental claims must not lead to the destruction of high-quality goods
The Chamber sent its opinion to the Economic Affairs Committee of the Riigikogu on the draft Act amending the Consumer Protection Act and the Explosive Substances Act (779 SE), which aims to clarify unfair commercial practices in order to combat greenwashing and help consumers make more informed choices. In the Chamber’s view, implementing the amendments requires clearer transitional measures and practical guidance for businesses in order to avoid unjustified costs for companies.
What will change for businesses?
The draft would expand the list of unfair commercial practices in order to ensure that consumers receive truthful information about the environmental impact and durability of products. In future, it will be prohibited to make general environmental claims such as “environmentally friendly,” “ecological,” “climate-neutral,” or “green” if these are not supported by substantiated explanations or if the product does not have a recognized ecolabel. Traders will also no longer be allowed to make an environmental claim about the entire product if it in fact concerns only one part of the product — for example, advertising a product as “made from recycled material” when in reality only the cap of the packaging is made from recycled material.
The new rules prohibit traders from advertising to consumers benefits that are already regarded as common practice in the relevant market or that are legally required. For example, it must not be presented as a special offer that a product complies with the general safety requirements of the European Union. The use of sustainability labels that are not established by public authorities or independently certified will also be prohibited. If a trader wishes to make an environmental claim about future environmental performance, such as a promise to achieve carbon neutrality, this will be permitted only if there are clear, public, and verifiable measures in place for reaching that goal.
Need for an exception for selling off inventory
Under the draft, the new requirements for environmental claims will enter into force on 27 September 2026. The Chamber pointed out that for many products, environmental claims are printed directly on the packaging, which is ordered in large quantities in advance. If the law enters into force on a specific date without a transitional provision, businesses would have to remove from sale products that do not comply with the new requirements, even though they are otherwise fully high-quality, and dispose of the packaging. The Chamber proposed allowing products placed on the market before the deadline to be sold until stocks are exhausted, in order to avoid waste and the environmental harm that would result from destroying packaging.
Clear guidance for businesses is needed
As the new rules are vague in some respects, the Chamber proposed applying the principle of “guidance before punishment” during the first 12 months after the law enters into force. This is necessary because it may be difficult for businesses to assess when a specific claim becomes a “general claim.” For example, there may be uncertainty as to whether the wording “made from natural ingredients” requires separate certification or whether a list of ingredients is sufficient. The Chamber emphasized that the state must provide practical guidance and examples to help traders understand where the line lies between permitted marketing and prohibited greenwashing. A good-faith error in interpreting the new methodology should not result in heavy fines; rather, the supervisory authority should first provide guidance on how to correct the mistake instead of immediately fining the business.
According to the draft, the planned amendments will enter into force on 27 September 2026.