The Riigikogu adopted legislative amendments setting new rules for environmental claims
On 17 June 2026, the Riigikogu adopted amendments to the Consumer Protection Act specifying the legal provisions regulating unfair commercial practices by adding specific misleading practices related to the environment that are deemed unfair in all cases and whose use is prohibited. The aim of the amendments is to ensure that information directed at consumers about the environmental impact of a product or service is honest and verifiable.
The amendments focus on reducing greenwashing and setting clearer boundaries for advertising the environmental impact and durability of products. The new rules concern only relations between traders and consumers, meaning that they do not apply to transactions or contracts between companies.
From 27 September 2026, entrepreneurs must be prepared to substantiate every environmental claim they use to advertise their products or services.
A generic environmental claim must be substantiated
In future, the seller of a product or service must substantiate all generic environmental claims with excellent environmental performance underlying the claim. Thus, a generic environmental claim made by a trader, for example the claim "environmentally friendly", must in future be based, for example, on the requirements of a relevant ecolabel or another equivalent high standard established in the European Union for the relevant product or service.
Generic environmental claims include, for example, claims such as "environmentally friendly", "ecological", "biodegradable", "climate neutral" or "green". Thus, for example, the claim "climate-friendly packaging" is a generic environmental claim because the claim does not clearly explain what makes the specific packaging climate-friendly.
At the same time, for example, the claim "100% of the energy used to produce this packaging comes from renewable energy sources" is not a generic environmental claim, because in that case it is clearly described what the claim is based on.
Therefore, when distinguishing between a specific and a generic environmental claim, it is important whether the content or meaning of the claim is also explained on the same medium. For example, the claim "biodegradable" will in future be classified among prohibited generic environmental claims because it does not specify under what conditions and how quickly degradation takes place. By contrast, a specific claim such as "the packaging is biodegradable through home composting within one month" is a permitted and correct environmental claim.
Although in the case of a specific environmental claim the trader does not have to prove excellent environmental performance, such claims must nevertheless not be factually incorrect. In addition, a claim made in writing or orally, together with indirect claims such as colours or images, may constitute a generic environmental claim. For example, the use of the word "green" together with visual elements may constitute a generic environmental claim, but this depends on the specific context and must be assessed case by case.
As a general principle in connection with unfair commercial practices, responsibility for the use of an unfair commercial practice lies with the person who applies the practice and who should have the required information. Responsibility lies primarily with the producer who has placed on the product or packaging the environmental claim or sustainability label that does not meet the requirements. As a rule, these are producers, including, for example, owners of retailers' private labels. Retailers usually do not have decision-making power over the composition or packaging of the goods they sell and generally rely on data that the producer has provided to the reseller.
A sustainability label created by the company itself can no longer be used
If an entrepreneur wishes to use a sustainability label in future, it must be based on a certification scheme or established by a public authority. A sustainability label is a label that is not mandatory under EU or Estonian law. For example, the most common sustainability label in Estonia is the European Union Ecolabel, which is issued in Estonia by the Environment Agency. This label may continue to be used, but from the autumn it will no longer be permitted, for example, to use an environmental label created by the trader itself that has not been verified by a third party.
Thus, a trader wishing to use a sustainability label in future must take into account the costs associated with verification, that is, whether the product meets the requirements of the label. If sustainability labels have not been created by public authorities, they must be based on a certification scheme. Therefore, if an entrepreneur wishes to use a label, it must be based on a certification scheme proving that the product or entrepreneur meets specified requirements. These requirements must be public, transparent and developed together with relevant experts. The conformity of the product can no longer be confirmed by the trader itself; it must be assessed by a verifier independent of the trader and the owner of the scheme, namely a certification body. If a generic environmental claim used by a trader is presented as a sustainability label based on a certification scheme or established by a public authority, such labels do not have to be substantiated separately. However, if a package currently bears a label and it cannot be substantiated, then from 27 September products bearing such labels may no longer be sold.
Will several environmental claims become prohibited in future?
From the autumn, an entrepreneur may no longer make an environmental claim about an entire product if it actually concerns only one part or component of the product. A typical misleading example is advertising a product as made from recycled material in a situation where only, for example, the product's packaging is actually recycled, while the content itself is produced in the usual way. According to the draft, presenting such a half-truth is treated as misleading the consumer.
Among other things, the new rules also prohibit traders from advertising to consumers advantages that are already considered standard practice in the relevant market or that are in any case mandatory for everyone by law. For example, it is not permitted to present as a special feature of a product the fact that the goods comply with the general safety requirements of the European Union or are free from substances whose use is already prohibited in that product category.
Future-oriented promises are also under particular scrutiny. If a trader wishes to make claims about future environmental performance, such as a promise to reach carbon neutrality or reduce emissions by a certain year, this is permitted only if the company can present clear, objective and publicly verifiable action and implementation plans. These plans must show how the objective will be achieved, include interim targets and be verified by an independent third party. An independent third party is a person or body separate from the trader and the owner of the certification scheme and has the necessary competence and resources to carry out verification.
Is there a transition period for the new requirements?
If a producer or trader identifies that the packaging of goods produced before 27 September 2026 contains environmental claims or sustainability labels that do not comply with the new requirements, they may take practical measures to ensure compliance. This means that the producer or trader may cover or correct non-compliant claims with stickers or add additional explanatory information next to the goods at the point of sale. The Consumer Protection and Technical Regulatory Authority has also emphasised that the purpose of supervision is not to destroy existing products, but primarily to ensure that entrepreneurs bring their marketing and packaging solutions into line with the new requirements within a reasonable time. All possible infringements will be assessed case by case.
What is the penalty for misleading consumers?
The Consumer Protection Act provides for a penalty for violating the prohibition on the use of unfair commercial practices. Under it, a natural person is punishable by a fine of up to 300 fine units, that is, up to 1,200 euros, and a legal person by a fine of up to 400,000 euros.
The amendments supplement the act with new fines aimed specifically at infringements committed on a large scale. In future, where the prohibition on the use of unfair commercial practices is violated, even higher fine rates may be imposed if the act was committed on a large scale or has an EU dimension. In such a case, both a natural person and a legal person may be punished by a fine of up to 4% of their annual turnover in the previous financial year. If data on annual turnover is missing or unavailable, the fine may amount to up to 2 million euros.
A large-scale infringement means activity that harms the collective interests of consumers in at least two Member States other than the one in which the infringement originated. It also includes a situation where the same unlawful practice, such as the same misleading green claim on packaging, is used by the same trader simultaneously in at least three Member States. A large-scale infringement with a European Union dimension is an even broader case. It is an infringement that harms the interests of consumers in at least two thirds of the Member States, meaning at least 18 countries, whose population together represents at least two thirds of the total population of the European Union. Thus, in distinguishing between a large-scale infringement and a large-scale infringement with a European Union dimension, it is important in how many Member States the infringement has occurred.
The amendments will enter into force on 27 September 2026. The proceedings on the draft in the Riigikogu can be viewed here.