Empowering Consumers Directive

Introduction

Directive (EU) 2024/825, widely known as the Empowering Consumers for the Green Transition (ECGT) Directive, is a legislative act that amends the Unfair Commercial Practices Directive (2005/29/EC) and the Consumer Rights Directive (2011/83/EU). It is part of the European Green Deal and the Circular Economy Action Plan. The Directive aims to protect consumers from misleading environmental claims (greenwashing) and unfair practices related to the early obsolescence of goods, while ensuring they receive better information about product durability and reparability.

Main Goal

The primary objective is to empower consumers to make informed, sustainable purchasing decisions by banning unfair commercial practices that prevent valid comparisons between products and by standardizing information regarding product longevity and repair.

Who It Applies To

This Directive applies to traders (businesses) operating within the EU that engage in business-to-consumer (B2C) commercial practices. It covers:

• Manufacturers and producers (regarding durability guarantees and reparability info).
• Retailers and sellers (regarding the presentation of information at the point of sale).
• Online marketplaces and digital service providers.

Key Dates

• Entry into Force: 26 March 2024.
• Transposition Deadline: Member States must adopt and publish necessary measures by 27 March 2026.
• Application Date: Measures apply to businesses starting 27 September 2026.

Key Provisions & Obligations

Ban on Greenwashing

The Directive amends Annex I of the UCPD to prohibit specific practices in all circumstances:

• Generic Claims: Banning generic environmental claims (e.g., "eco-friendly," "green," "biodegradable") unless the trader can demonstrate recognized excellent environmental performance (e.g., EU Ecolabel).
• Carbon Offsetting: Banning claims that a product has a neutral, reduced, or positive greenhouse gas emissions impact (e.g., "climate neutral") based on the offsetting of emissions.
• Sustainability Labels: Prohibiting the display of sustainability labels that are not based on a certification scheme or established by public authorities.

Durability and Early Obsolescence

• Software Updates: Traders cannot withhold information that a software update will negatively impact the functioning of goods or present updates as necessary when they only enhance functionality.
• False Durability Claims: Banning claims about durability (usage time/intensity) that are not proven under normal conditions.
• Design features: Banning the marketing of goods containing features introduced to limit their durability (planned obsolescence).

Information Requirements (Amendments to CRD)

• Harmonized Label: Introduction of a harmonized label to inform consumers about commercial guarantees of durability offered by producers for more than two years at no extra cost.
• Reparability: Traders must provide the reparability score (where established at EU level) or other repair information (availability of spare parts, manuals) if no score exists.

Penalties

Penalties are determined by individual Member States but must be effective, proportionate, and dissuasive. Under the existing frameworks (UCPD and CRD), penalties often include significant fines based on a percentage of the trader's annual turnover in the concerned Member States.