In light of the forthcoming implementation of the EU Empowering Consumers Directive in Austria, manufacturers and retailers must review their environmental claims. For the first time, all statements relating to the environment and sustainability are subject to a comprehensive and significantly stricter regulatory framework. The provisions of Directive (EU) 2024/825 (Empowering Consumers Directive, EmpCo Directive), which were required to be transposed into national law, will become binding for businesses as of 27 September 2026. The Austrian draft implementing legislation has been available since 10 June 2026. The relevant provisions are intended to be incorporated into the Austrian Unfair Competition Act (UWG).

1 Key provisions of the directive

1.1 New and more stringent definitions

● "Environmental claim": means any voluntary statement in any form, including non-verbal elements such as images, brand names and company names, made in the context of a commercial communication, which indicates a positive, neutral or comparatively improved environmental impact of a product, product category, brand or business.

● "Generic environmental claim": means any written or oral environmental claim, including via audiovisual media, that is not included in a sustainability label and for which no clear and prominent specification is provided on the same medium.

● "Sustainability label": means a voluntary public or private trust mark, quality label or similar sign intended to highlight or promote a product, process or business activity in relation to its environmental or social characteristics, or both, excluding mandatory labelling.

● "Certification scheme": means a third-party verification system under which it is certified that a product, process or business activity meets certain requirements and which enables the use of a corresponding sustainability label, subject to conditions defined by law.

● "Recognised excellent environmental performance": means environmental performance in accordance with Regulation (EC) No 66/2010, recognised national or regional ecolabelling schemes based on EN ISO 14024 Type I or environmental performance at the highest level under other applicable EU law.

1.2 Extension of the list of per se prohibited practices Of particular relevance for manufacturers of consumer goods, service providers and retailers is the planned expansion of business practices that are considered misleading per se. This will significantly tighten the legal framework and may have substantial implications, particularly in light of potential collective actions by consumer protection organisations. The following business practices are specifically targeted:

● use of a sustainability label that is not based on a certification scheme or has not been established by public authorities;

● generic environmental claims made towards consumers without the ability to substantiate the recognised excellent environmental performance to which the claim relates;

● environmental claims concerning the entire product or the trader’s overall business activity where they relate only to a specific aspect of the product or a specific activity;

● claims that a product has neutral, reduced or positive environmental impacts in terms of greenhouse gas emissions, where such claims are based on offsetting emissions;

● presenting requirements that apply by law to all products within a product category on the Union market as a distinctive feature of the trader’s offer;

● withholding information from consumers that a software update may negatively affect the functioning of goods with digital elements or the use of digital content or digital services;

● presenting a software update to consumers as necessary where it merely serves to improve functionality;

● any commercial communication relating to a product that includes a feature introduced to limit durability, where the trader is aware of that feature and its impact;

● false claims regarding the durability of a product under normal conditions of use;

● presenting a product as repairable where this is not the case;

● inducing consumers to replace or replenish consumables earlier than technically necessary; and

● withholding information that the functionality of goods may be impaired if consumables, spare parts or accessories not supplied by the original manufacturer are used, or falsely claiming that such impairment will occur. In addition, a commercial practice will be considered misleading where it is capable of inducing a transactional decision that would not otherwise have been taken and includes an environmental claim relating to future environmental performance without complying with legal requirements.

1.3 Information requirements on durability, repairability and guarantees The EmpCo Directive also introduces mandatory pre-contractual information to enable informed purchasing decisions. This includes information on the durability and repairability of products through an EU-wide "harmonised label" and information on statutory guarantees through a corresponding "harmonised notice".

1.4 Transitional provisions The Austrian draft implementing legislation, unlike the Directive itself, provides for a transitional period. For up to three years after entry into force, civil law claims relating to goods for infringements of these provisions may only be brought where the goods concerned were placed on the market after 27 September 2026.

2 Conclusion and recommendations It is to be welcomed that greenwashing will be addressed rigorously by the new provisions. Existing advertising claims, statements on product packaging and, in particular, brand names and company names should therefore be carefully reviewed to determine whether they qualify as a generic environmental claim or a sustainability label. Where this is the case, adjustments will be required to ensure compliance with the new legal framework.

Source: Wolf Theiss