Greenwashing Under EU Scrutiny: Current Czech Rules and the EmpCo Directive

Greenwashing, i.e., misleading environmental claims, is already penalized in the Czech Republic today by the Czech Trade Inspection Authority with a fine of up to CZK 5 million. Furthermore, European Directive (EU) 2024/825 (EmpCo), which member states were to apply from September 27, 2026, explicitly prohibits generic claims such as "ecological" without substantiation, as well as "climate neutral" claims based on offsets. The Czech amendment implementing the directive was passed by the Chamber of Deputies on October 14, 2026, and is now heading to the Senate. Lawyers from the Prague-based ARROWS law firm explain what to adjust immediately and what to prepare for.

What applies to environmental claims in the Czech Republic today

The Czech Republic does not have a specific "greenwashing law". Environmental claims made to consumers are assessed under the general rules of the Consumer Protection Act regarding unfair commercial practices. However, these rules are stricter than is often assumed.

Misleading actions. A commercial practice is misleading if it contains false information, or even true information presented in a way that deceives the consumer – among other things, regarding the benefits of the product, manufacturing process, composition, or expected results. A claim of "100% recyclable packaging" that only applies to the lid is a typical example.

Misleading omissions. It is also misleading to omit material information or to present it in an unclear or ambiguous manner. The slogan "kinder to nature" without explaining compared to what and in what respect can thus be a problem even if it is true in some aspect.

Blacklist. The unauthorized use of a quality mark or similar label and false claims that a product has been approved, endorsed, or authorized are always considered misleading. The unauthorized use of an ecolabel is a separate administrative offense.

Burden of proof on the company. The supervisory authority may require the seller to prove the accuracy of their factual claims. If the evidence is not presented or is insufficient, the claims are considered incorrect. For green marketing, this is a key rule: what a company cannot substantiate, it should not claim.

Who supervises and what sanctions apply

Supervision of unfair commercial practices towards consumers is carried out by the Czech Trade Inspection Authority. In the food sector, it is the Czech Agriculture and Food Inspection Authority, and for financial institutions, the Czech National Bank. Advertising is supervised by regional trade licensing offices under the Act on the Regulation of Advertising, and radio and television broadcasting by the Council for Radio and Television Broadcasting. The Office for the Protection of Competition does not supervise misleading practices towards consumers.

• Fine for unfair commercial practices: up to CZK 5,000,000.

• Unauthorized use of an ecolabel: up to CZK 3,000,000.

• Coordinated European actions: if the infringement is handled within the cooperation of supervisory authorities under Regulation (EU) 2017/2394, up to 4% of annual turnover, or up to CZK 50,000,000.

• Consumer claims: a consumer affected by an unfair practice may withdraw from the contract within 90 days of its conclusion or demand a reasonable discount.

• Competition: misleading advertising is also unfair competition under the Civil Code. A competitor may seek an injunction, removal of the defective state, reasonable satisfaction, damages, and surrender of unjust enrichment.

Reputational risk often exceeds the fine itself – especially when an entire brand or campaign is built on the claim. The Czech legal team at ARROWS law firm represents companies in CTIA inspections and in disputes over misleading advertising. If you are addressing a specific campaign, write to us at consultation@arws.cz.

EmpCo Directive (EU) 2024/825: what it newly prohibits

The Directive on Empowering Consumers for the Green Transition (EmpCo) amends the European Unfair Commercial Practices Directive and the Consumer Rights Directive. Member states were required to transpose it by March 27, 2026, and apply the new rules from September 27, 2026.

New concepts to work with

• Environmental claim: any voluntary communication or representation (text, image, symbol, product or brand name) suggesting that a product, brand, or company has a positive or zero impact on the environment, is less harmful than others, or has improved over time.

• Generic environmental claim: claims such as "ecological", "green", "environmentally friendly", where the exact benefit is not clearly and prominently specified on the same medium.

• Sustainability label: a voluntary trust or quality mark that distinguishes a product or company based on its environmental or social impact.

• Certification scheme: verification by an independent third party under publicly available, transparent, and non-discriminatory conditions, with procedures for handling non-compliance.

• Recognized excellent environmental performance: compliance with the EU Ecolabel, an officially recognized Type I ecolabel in accordance with EN ISO 14024, or the highest level of environmental performance under other EU regulations.

What will be prohibited under all circumstances

The directive expands the blacklist of practices that are always unfair, without further examination of the impact on the consumer:

1. In-house "eco" labels – displaying a sustainability label that is not based on a certification scheme or established by a public authority.

2. Generic claims without substantiation – "ecological", "natural", "green", and similar, unless the company substantiates a recognized excellent environmental performance relevant to the claim.

3. Claims about the whole that apply only to a part – for example, "recycled product" when only the packaging is made of recycled material.

4. Climate neutrality based on offsets – claiming that a product has a neutral, reduced, or positive impact on the environment due to greenhouse gas emission compensation.

5. Legal standards presented as a benefit – presenting requirements that apply by law to all products in a given category as a special benefit of the offer.

The ban on offset claims concerns claims about the impact of a specific product. According to its recitals, the directive does not prevent companies from informing about investments in environmental initiatives, including carbon credit projects, provided this is not misleading.

Claims about the future and "net zero 2030" commitments

An environmental claim about future performance (for example, "we will be carbon neutral by 2030") will also be considered misleading unless it is backed by clear, objective, publicly available, and verifiable commitments. These must be set out in a detailed and realistic implementation plan with measurable and time-bound targets and allocated resources. The plan must be regularly verified by an independent expert, and their findings must be available to consumers.

Similarly, it will be misleading to advertise benefits that are not relevant to consumers and do not result from any feature of the product or service.

Durability, reparability, and software updates

EmpCo does not only concern ecology. It also adds practices related to product lifespan to the blacklist. This includes omitting information that a software update will worsen the functioning of a device, false claims about durability or reparability, or prompting the replacement of consumables earlier than technically necessary. For electronics and appliance manufacturers and retailers, this means reviewing product sheets and customer support communications.

Status of Czech transposition: Chamber of Deputies Document No. 53

The Czech Republic did not meet the transposition deadline. The government submitted the amendment to the Consumer Protection Act and the Civil Code to the Chamber of Deputies on December 8, 2025, as Document No. 53. It passed its first reading on March 25, 2026, and the second on June 24, 2026. In the third reading, the Chamber of Deputies approved it on October 14, 2026; it must now be discussed by the Senate and signed by the President.

The government proposal adopts the new definitions and the expanded blacklist from EmpCo, supplements rules for comparison services (for example, comparison tools that assess sustainability), and changes information obligations in the Civil Code – including a harmonized notice on rights from defective performance. The government originally proposed effectiveness from July 31, 2026, and September 27, 2026, respectively; these dates have already passed.

Before the 3rd reading, the Committee on the Economy recommended two amending proposals; the Chamber of Deputies approved the transitional period according to CTIA news:

• Effectiveness on the first day of the month following the publication of the law.

• Transitional period for products: products manufactured or placed on the market before September 27, 2026, would, in terms of environmental claims and sustainability labels, be treated as if they met the new rules for 24 months from the effectiveness of the amendment.

What this means for companies today:

• The new explicit rules of EmpCo are not yet part of Czech law. They will apply only from the effectiveness of the amendment.

• General rules on misleading practices apply right now. Unsubstantiated "eco" claims can thus be penalized by the CTIA even without the amendment – especially thanks to the rule that an unsubstantiated claim is considered incorrect.

• The transitional period – if it remains in the final wording – only applies to products manufactured or placed on the market before September 27, 2026. It is safer to prepare new packaging, campaigns, and websites according to the new rules.

• Companies operating in multiple EU countries must take into account that in states that have already implemented the directive, the EmpCo rules may apply as of September 27, 2026. A campaign launched for the entire region should therefore comply with the strictest regime.

And what about the Green Claims Directive? This is a separate Commission proposal from 2023, which was intended to introduce mandatory pre-verification of environmental claims. It was not adopted: in June 2025, the Commission announced its intention to withdraw the proposal, the planned final meeting was canceled, and the procedure according to the European Parliament's legislative observatory is still awaiting the Council's position. Therefore, no obligation to have every claim pre-certified applies in the EU or in the Czech Republic.

How to set up safe environmental communication

Companies communicating environmental benefits should not wait for the final date of effectiveness of the amendment. Reviewing marketing materials, packaging, and websites takes weeks or months – and packaging manufactured today will be on the market even after the new rules take effect.

1. Map out all claims. Packaging, product sheets, websites, social media, advertisements, product names, and logos. An environmental claim can also be an image of a leaf or a green color combined with a slogan.

2. Remove generic claims. Replace "ecological", "green", or "friendly" with a specific, measurable, and substantiated figure, or back them with a recognized ecolabel (such as the EU Ecolabel).

3. Verify marks and logos. Keep only sustainability labels that are based on a third-party certification scheme or a public authority decision. In-house "eco" logos must be phased out or replaced.

4. Rethink offset claims. Replace claims of product climate neutrality based on offsets with truthful information about actual emission reductions and support for specific projects.

5. Substantiate future commitments. Communicate "net zero" targets only with a public plan, measurable milestones, and independent verification.

6. Establish an evidence file. Keep supporting documents – calculations, certificates, contracts, methodology – for every claim. During a CTIA inspection, what the company can substantiate is decisive.

Final Summary

Greenwashing is not a "gray zone" in the Czech Republic. The Consumer Protection Act already prohibits misleading environmental claims, penalizes the unauthorized use of ecolabels, and shifts the burden of proof to the company. The EmpCo Directive (EU) 2024/825 tightens these rules: it explicitly prohibits generic "eco" claims without substantiation, in-house sustainability labels, and offset-based product "climate neutrality".

The Czech amendment was passed by the Chamber of Deputies on October 14, 2026; the Senate will still decide on the final form, including the transitional period. For management, it is crucial that reviewing packaging, campaigns, and brands takes time, and unsubstantiated claims are a risk right now. If you do not want to risk a fine, a dispute with competitors, or reputational damage, entrust the review of your environmental communication to the Czech legal team at ARROWS law firm. Contact us at consultation@arws.cz.