With the Third Act Amending the Unfair Competition Act (UWG), the legislature is responding to European requirements aimed at strengthening consumer protection in the context of ecological transition. The goal is to more consistently prevent misleading business practices, particularly in connection with environmental and sustainability claims, while significantly increasing transparency for consumers. For companies, this means a noticeable tightening of legal requirements for advertising, product information, and market communications.
The centerpiece of the reform is the comprehensive revision of the definitions in Section 2 of the UWG. For the first time, “environmental claims,” “general environmental claims,” “sustainability labels,” and “certification systems” are legally defined. In doing so, the legislature establishes a clear basis for the legal assessment of so-called “green claims.” General and blanket statements such as “environmentally friendly” or “climate-neutral” will in future only be permissible if they are either clearly specified or verifiable through recognized outstanding environmental performance.
Of particular practical relevance is the new distinction between general environmental claims and those based on sustainability labels. Sustainability labels may only be used if they are based on a transparent, verifiable, and independent certification system or are established by the state. Fictitious or proprietary quality labels without a solid basis are expressly classified as unfair business practices and included in the “Black List” of the Annex to the UWG.
Section 5 of the UWG, which regulates misleading commercial practices, is also significantly expanded. The essential characteristics of goods and services now explicitly include ecological and social characteristics as well as circularity aspects such as durability, reparability, and recyclability. Anyone who provides inaccurate or incomplete information in this regard risks legal action under competition law in the future.
Vague promises regarding future environmental performance should be avoided in the future. Statements about a better environmental footprint in the future are only permissible if they are based on clear, objective, and publicly accessible commitments. A detailed, realistic implementation plan with measurable goals is required, which must be regularly reviewed by independent experts. Mere declarations of intent without substance are no longer sufficient.
Another focus of the reform is on digital products and services. Misleading information regarding software updates, durability, or reparability is explicitly classified as unfair. In particular, companies must not conceal if updates have negative effects on functionality, nor may they advertise an update as necessary if it is intended merely to improve functionality. Planned or known durability limitations must also be made transparent. Information regarding reparability must be accurate.
Another new provision is the explicit ban on advertising benefits that are irrelevant to consumers.
Additional disclosure requirements are being introduced for comparison services that present the environmental or social characteristics of products. The comparison method, the products and suppliers considered, and measures for updating the data will henceforth be considered essential information. This is intended to prevent consumers from making decisions based on non-transparent or outdated comparisons.
Finally, sanctions are being significantly tightened. In addition to the previous maximum fine of 50,000 euros, the law provides for a fine of up to four percent of annual turnover generated in the affected EU member states for certain violations by high-revenue companies with an annual turnover of 1.5 million euros or more. This marks the first time the UWG has reached a level of sanctions aligned with established European Union enforcement mechanisms, intended to serve as a genuine deterrent.
The law will largely take effect on September 27, 2026, with certain provisions taking effect as early as June 19, 2026. Companies should use the remaining time to adapt their advertising claims, seals, product information, and internal review processes in a timely manner. Otherwise, they face not only warnings under competition law but also substantial administrative fines.
The statements represent initial information that was current for the law applicable in Germany at the time of initial publication. The legal situation may have changed since then. Furthermore, the information provided cannot replace individual advice on a specific matter. Please contact us for this purpose.