Germany is set to enforce new regulations on sustainability labels and certification schemes starting September 27, 2026. This move will require companies utilizing environmental, social, or employer-related seals to ensure these labels comply with the revamped standards established by the European Union. These changes come through Germany’s Third Act Amending the Act Against Unfair Competition (UWG), which implements the EU EmpCo Directive (2024/825). The reform aims to impose stricter criteria on the use of sustainability labels and certain employer seals in marketing and recruitment efforts.
The updated regulatory framework will potentially limit the use of labels that are not derived from recognized certification systems or those not established by public authorities. This applies not only to environmental claims but could also extend to social criteria, including workplace conditions, employee satisfaction, fairness, and diversity, contingent on the nature of the seal. To qualify as a valid certification scheme, several conditions must be met, such as transparent documentation, publicly accessible criteria, equal opportunity for organizations, and independent third-party verification.
As these regulations take effect, international companies, including those not based in Germany, could be impacted if they use employer or sustainability seals to target German customers, employees, or applicants. Businesses are advised to evaluate their current certification providers, documentation, and verification processes ahead of the new rules’ implementation. The emphasis of the revised regulations shifts from merely assessing whether a claim is misleading to scrutinizing the credibility and independent verification of the certification system underpinning the claim.
Organizations that maintain transparent certification processes stand to gain increased trust, while those relying on unsupported marketing labels might face legal challenges. Industry experts suggest that companies prepare by reviewing certification criteria, keeping evidence of evaluation procedures, and ensuring that all supporting documents are readily available. Moreover, seeking legal guidance on specific compliance issues related to competition law is recommended to navigate these upcoming changes.
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