Starting September 27, 2026, Germany will enforce new regulations regarding sustainability labels and certification schemes to ensure compliance with updated European Union standards. The changes come through the Third Act Amending the Act Against Unfair Competition, aligning with the EU EmpCo Directive (2024/825). These stringent requirements will impact how companies use environmental, social, and employer-related seals in their marketing and recruitment activities.
The revised framework will particularly scrutinize labels that are not based on recognized certification systems or those not established by public authorities. While primarily focused on environmental claims, the rules may also extend to social criteria like workplace conditions, employee satisfaction, fairness, and diversity, contingent upon the specific nature of the seal. Companies will need to ensure their certifications undergo transparent documentation, are supported by independent third-party verification, and meet publicly available criteria with equal access for all organizations.
This regulation holds significance for international businesses, including those outside Germany, if they utilize employer or sustainability seals while engaging with German customers, employees, or job applicants. Firms are encouraged to assess their existing certification providers, documentation, and verification processes ahead of the implementation date to ensure compliance. The new rules pivot from simply determining if a claim is misleading to thoroughly evaluating the credibility and independent verification of the certification system behind it.
Organizations with transparent and reliable certification processes stand to gain increased trust, while those relying on unsupported marketing labels could encounter legal issues. Experts advise businesses to prepare by verifying their certification criteria, maintaining records of evaluation procedures, and ensuring all supporting documents are readily accessible. Additionally, legal guidance concerning specific compliance queries related to competition law is recommended.
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