Green claims update: June 2025

Welcome to our round-up of the key legal and regulatory developments relating to green claims. If you have any questions about this, or about wider ESG and sustainability regulatory developments, please get in touch.

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Key updates

BREAKING: EU Commission considers withdrawing Green Claims Directive

In a shock last minute U-turn, the European Commission has proposed withdrawing the Green Claims Directive over concerns about the regulatory burden, particularly for SMEs, of getting green claims independently verified. It follows a letter from the EPP (the largest political party in the EU Parliament) criticising the Directive for cutting across the EU's simplification agenda and stating it would not endorse the Directive in the upcoming trilogue negotiations. The Commission has since back-pedalled slightly confirming that if protections for SMEs could be found, it would reconsider its proposal to withdraw the Directive. However, with this week's trilogues now abandoned, the shape of any future negotiations looks unclear…

ASA and CAP Annual Report 2024

In their latest Annual Report, the ASA and CAP highlight their ongoing use of AI-based tools to monitor online advertising. Their 'Active Ad Monitoring System' processed 28 million ads in 2024 and was the source of 41 formal rulings. Green claims are a continued focus area with the ASA reporting high levels of compliance by big brands. Finally, following a spate of recent rulings against major airlines, the ASA is working with the Department for Transport to develop further green claims guidance for the aviation sector.

Companies still greenwashing despite ASA rulings

A recent report has found that some companies, including Virgin Atlantic, Renault, and Aqua Pura, are continuing to make misleading green claims even after being told to remove them by the ASA. For example, according to the report, bottled water brand Aqua Pura continues to promote its "NEW environmentally friendly caps" even after the ASA ruled this wording misleading in 2022.

UK government tells CMA to prioritise 'pro-growth' interventions

In its recent 'strategic steer' to the CMA, the UK government has told the consumer regulator to prioritise "pro-growth and pro-investment interventions" by using its new powers under the DMCCA to promote consumer trust and deter poor corporate practices. With this 'pro-growth' agenda in mind, future green claims enforcement is likely to focus on particularly egregious breaches with the CMA expected to take some early test cases to demonstrate its new enforcement powers.

ASA rulings

Dualit Ltd

The ASA has ruled that an ad for Dualit's "compostable coffee bags" was misleading because it implied that the bags could be composted at home when, in fact, they required industrial composting. Neither the ad, nor the website it immediately linked through to, made clear how consumers should dispose of the bags to ensure they effectively decomposed. This was material information and should have been included in the ad.

Lavazza Coffee (UK) Ltd

The ASA has ruled that an ad for Lavazza's "compostable" coffee capsules was misleading because consumers would likely interpret it as meaning the capsules were suitable for home composting when they were not. Although Lavazza's website contained an FAQs section explaining how the capsules should be disposed of, this information was too far removed from the ad itself, and consumers were unlikely to visit these sections of the website as part of their purchase journey.

Sector updates

Retail and consumer brands

Twenty national consumer authorities have signed an open letter to the fashion retail sector urging retailers to review their green claims and ensure they comply with consumer law. The letter sets out various marketing principles for retailers to follow in a bid to raise standards across the sector. The letter specifically warns against the use of vague terms, exaggerated environmental impacts, misleading labels, and aspirational but unsubstantiated claims.

Australian consumer goods company Clorox has been fined A$8.25 million by the Federal Court for misleading consumers about its GLAD garbage bags, falsely claiming they were made from 50% recycled ocean plastic. The Australian Competition and Consumer Commission (ACCC) found the bags were actually made from plastic waste collected up to 50km from shorelines in Indonesian communities lacking formal waste management systems. 

Tech

The Environmental Defense Fund has filed a legal document calling Apple's carbon offsetting practices "eminently reasonable and consistent with industry practice". It is the latest development in the ongoing class action over Apple's 'carbon neutral' claims for its Apple Watch Series 9. The claimants allege that carbon credits from offsetting projects used by Apple in Kenya and China do not actually reduce emissions and that Apple should have independently verified the projects rather than relying on existing verification systems. However the EDF has said Apple's approach is entirely reasonable and that requiring independent verification of every project could have a chilling effect on the voluntary carbon market.

Energy

TotalEnergies is facing a civil trial over allegations it misled consumers by claiming it would reach "carbon neutrality" by 2050 while simultaneously expanding fossil fuel production. The claimants, three environmental NGO, also criticise TotalEnergies' labelling of natural gas as the "least polluting" fuel and therefore suitable for the climate transition. It is the first greenwashing case in France against an oil and gas company and could set significant legal precedent. The Paris court will issue its ruling on 23 October 2025.

Energy Australia is facing a claim initiated by Parents for Climate, accusing the company of misleading over 400,000 customers by marketing its "Go Neutral" electricity and gas products as carbon neutral through carbon offsets. The case, which commenced in May 2025, is the first in Australia challenging a company's "carbon neutral" marketing under Australian Consumer Law.

Other

In a groundbreaking whistleblower case, the former creative director of the advertising behemoth AMV BBDO is suing her former employer for "harassment and discrimination" she allegedly faced after raising concerns about the agency's work on green ad campaigns for Mars brands. The campaigns included ads for Galaxy chocolate and Sheba pet food which whistleblower Polina Zabrodskaya alleges amounted to greenwashing.  A preliminary hearing in the case was heard by the Employment Tribunal in April. The case continues.