Germany’s retail industry has raised concerns over the European Union’s upcoming consumer protection rules, warning that the legislation could unintentionally force businesses to discard large volumes of perfectly usable products and packaging while imposing substantial financial costs on retailers.
The EU green claims rules are scheduled to take effect on 27 September 2026 under the Empowering Consumers Directive (EmpCo). The legislation is designed to combat greenwashing by preventing businesses from marketing products with environmental claims that do not comply with the new legal requirements.
However, the German Retail Federation (HDE) believes the implementation of the directive could have serious unintended consequences. The federation argues that products and packaging already manufactured and stored in warehouses may no longer be legally sold if their sustainability claims fail to meet the updated standards.
According to the HDE, this could leave retailers with no practical option other than withdrawing affected stock from the market, resulting in losses that could amount to millions of euros across multiple product categories.
The EU green claims rules form part of broader reforms intended to strengthen consumer confidence by integrating stricter environmental marketing requirements into Germany’s Act Against Unfair Competition (UWG).
Although the European Union’s Consumer Protection Cooperation (CPC) Network has issued guidance encouraging proportionate enforcement to reduce unnecessary waste, the HDE argues that these recommendations do not provide sufficient legal protection for businesses operating in Germany.
The federation pointed out that German enforcement is largely handled by private organisations, including trade associations and consumer groups, which are not legally required to follow the CPC Network’s guidance.
As a result, retailers could still face legal action, injunctions or cease-and-desist notices if they continue selling products carrying environmental claims that fail to comply with the directive after the implementation deadline.
The HDE also warned that forcing companies to remove and potentially destroy unsold inventory conflicts with the European Union’s own circular economy and sustainability ambitions.
The federation believes that disposing of usable goods solely because of non-compliant labelling would generate avoidable waste while undermining environmental objectives the legislation seeks to promote.
“This undermines the EU’s aims of improved environmental protection and its intended sustainability targets,” Genth said.
To avoid these consequences, the HDE is urging the European Commission to introduce practical transition measures, including sell-through periods that would allow existing inventory to remain on the market while businesses gradually update packaging and environmental claims.
According to the federation, clearly defined transition provisions would reduce financial pressure on retailers, prevent unnecessary product destruction and provide businesses with greater legal certainty during implementation.
Without legislative changes, the organisation believes companies throughout Germany could suffer significant economic losses while large quantities of marketable goods are removed from circulation before reaching consumers.
“This is the only way to ensure legal certainty for all market participants in Europe, rather than using arrangements that raise concerns about the rule of law to conceal past failings,” Genth added.
