Status: ✅ Approved EU law
Adopted in 2005, the Unfair Commercial Practices Directive (UCPD) is the EU’s main legal framework for business-to-consumer marketing. For apparel and footwear brands operating in the EU, it sets the basic rules for how claims about environmental performance, pricing, promotions, and product features can be communicated to consumers.
With the European Commission now expected to withdraw the proposed Green Claims Directive – a regulation that would have required companies to substantiate eco-labels and claims using the Product Environmental Footprint (PEF) method – the UCPD remains the central enforcement tool against greenwashing in the EU.
In 2024, UCPD was updated through the Empowering Consumers for the Green Transition Directive (ECGT). This update bans specific green claims – such as generic claims like “eco-friendly” without explanation, product claims based on carbon offsetting, and sustainability labels that are not backed by an approved certification scheme.
EU Member States must transpose the ECGT into national law by March 2026, with the updated rules applying from September 2026. From that point on, authorities will be able to issue fines and require corrective actions if the rules are not followed. To prepare, brands should review all environmental claims and map each one to clear, product-level environmental data.
Let’s break down those requirements!
The Unfair Commercial Practices Directive (UCPD) has been transposed into national law in all EU Member States since 2007 and is already actively enforced by national consumer protection authorities.
In the fashion industry, several companies have already come under regulatory scrutiny for breaching UCPD provisions. For example, the Dutch Authority for Consumers and Markets flagged H&M and Decathlon for using sustainability-related terms like “Conscious” and “Ecodesign” without clear definitions or supporting evidence. Both brands were required to revise their labeling and marketing practices in response.
The Empowering Consumers for the Green Transition Directive (ECGT), adopted in 2024, amends and strengthens the UCPD by adding clear rules specifically for environmental claims and sustainability labels. Rather than replacing the UCPD, the ECGT updates it by explicitly listing certain practices that are no longer allowed.
Member States must transpose these updates into their national legislation by March 2026, after which the strengthened rules will apply from September 2026. From that point on, fashion brands will be assessed against the strengthened UCPD rules when communicating environmental claims.
The Unfair Commercial Practices Directive applies to a wide range of marketing and sales practices. For the fashion industry, its most relevant impact relates to environmental claims and sustainability labels, particularly following the 2024 amendment introduced by the Empowering Consumers for the Green Transition Directive.
Under the UCPD, an environmental claim is any message – textual, visual, or symbolic – that suggests a product, service, or brand has a positive or reduced impact on the environment compared to alternatives. This includes wording, imagery, colors, symbols, product names, and labels used in commercial communications.
Below are the key rules apparel and footwear brands should be aware of:
Vague or generic terms such as “eco-friendly,” “green,” “sustainable,” or “climate neutral” are prohibited unless backed by recognized, verifiable certification.
Allowed: "Made with 95% GOTS-certified organic cotton."
Not allowed: "Sustainably made" (without substantiation)
It is prohibited to claim that a product as a whole is sustainable, recycled, or biodegradable if only one component meets the claim.
Allowed: “This T-shirt's stitching is made from recycled polyester.”
Not allowed: “Recycled T-shirt” (if only the label or thread is recycled)
Comparative environmental claims must be clear, meaningful, and not misleading. Brands must explain what is being compared and on what methodology, without exaggeration or selective framing.
Allowed: “This model uses 25% less packaging material than our 2022 version.”
Not allowed: “Our greenest shoe yet” (without explanation or benchmark)
Highlighting one positive environmental feature while ignoring other significant negative impacts is considered misleading. This includes selective disclosure of benefits while hiding the broader footprint.
Allowed: “Contains recycled polyester; however, production still uses virgin fossil-based dyes.”
Not allowed: “Eco jacket” (if high-impact materials or processes are involved and not disclosed)
Sustainability labels, logos, or visual badges must be based on independently verified schemes, publicly accessible, and not created by the brand itself. Labels issued by public authorities outside the EU may only be used if they meet the EU’s requirements for recognized certification schemes.
Allowed: “Certified by OEKO-TEX® Standard 100”
Not allowed: Use of a self-designed “eco-logo” with no third-party validation
Claims suggesting that a product is durable, long-lasting, repairable, or designed to last must accurately reflect the product’s design and the availability of repair options or spare parts. Misleading claims related to durability or planned obsolescence are prohibited.
Allowed: “This jacket comes with a 5-year commercial repair service for zippers and seams.”
Not allowed: “Built to last” when no repair services, spare parts, or durability guarantees are available.
Product-level claims based solely on carbon offsetting – such as “carbon neutral” or “climate neutral” achieved through offset credits – are explicitly restricted under the ECGT.
Allowed: This T-shirt’s manufacturing emissions were reduced by switching to renewable electricity at the fabric mill; remaining emissions are reported separately.
Not allowed: This T-shirt is climate neutral. We offset all CO₂ emissions through certified reforestation.
Brand and product names that imply environmental benefits (e.g. “eco,” “green,” “climate neutral”) may be treated as environmental claims. Visual elements such as leaves, water imagery, or green color schemes can also imply environmental benefits, especially when used alongside sustainability-related text or symbols.
Allowed: Neutral product naming with factual, clearly explained environmental information
Not allowed: Product names or packaging visuals implying environmental benefits without a compliant, supported claim
Claims about future environmental performance (e.g. “carbon neutral by 2030”) must be supported by clear, measurable, and time-bound commitments, a documented implementation plan, and regular third-party verification that is publicly accessible.
UCPD is enforced nationally. Every EU Member State has its own consumer protection authority (e.g. ACM in the Netherlands, DGCCRF in France). These authorities investigate and sanction brands under national UCPD laws. This means penalties are imposed by national authorities, not directly at EU level, and are assessed on a case-by-case basis.
Under the EU’s consumer enforcement framework, serious or widespread breaches – such as misleading environmental claims used across multiple EU countries – can lead to fines of up to 4% of a brand’s annual turnover in the affected Member State(s). Where a brand’s turnover cannot be determined, national authorities must be able to impose fines of at least €2 million.
In addition to financial penalties, authorities may require brands to:
Penalties are determined based on factors such as the seriousness and duration of the breach, whether it was repeated or intentional, and the economic benefit gained. As the ECGT rules are transposed into national law in 2026, authorities will be able to apply these strengthened rules using existing UCPD enforcement mechanisms.
The Unfair Commercial Practices Directive requires brands to substantiate their products’ environmental footprint. That means: no compliant claim without structured, accurate data. For brands still relying on spreadsheets, supplier PDFs, or disconnected reporting tools, the risk of non-compliance is high.
That’s why apparel and textile companies must start building their data infrastructure now. Early preparation is essential to avoid last-minute scrambles, verification failures, or greenwashing penalties.
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