Germany is set to implement a series of new regulations targeting sustainability labels and certification schemes, starting 27 September 2026. These changes will compel companies that utilize environmental, social, or employer-related seals to ensure their compliance with the revised EU standards. This initiative is part of Germany’s Third Act Amending the Act Against Unfair Competition (UWG), which enacts the EU EmpCo Directive (2024/825). The reform aims to establish more stringent criteria for sustainability labels and certain employer seals used in marketing and recruitment.
The updated framework is poised to impose restrictions on labels that are not grounded in recognized certification systems or those not established by public authorities. These rules will extend beyond environmental assertions to potentially include social factors such as workplace conditions, employee satisfaction, fairness, and diversity, depending on the specific nature of the seal involved. Certification schemes deemed valid must fulfill several requirements, such as transparent documentation, criteria that are publicly accessible, equal access for all organizations, and verification by an independent third party.
This regulatory change could impact international companies, including those not based in Germany, if they employ employer or sustainability seals in their efforts to reach German customers, employees, or job applicants. Businesses utilizing these certifications are encouraged to evaluate their providers, documentation, and verification methods before the regulations are enforced. The revised rules shift the emphasis from merely assessing whether a claim is misleading to determining the credibility and independent verification of the certification system behind the claim.
Organizations that maintain transparent certification processes may gain increased trust, while unsupported marketing labels could face legal scrutiny. Industry experts advise companies to prepare by reviewing certification criteria, maintaining thorough evidence of evaluation procedures, and ensuring all supporting documents are readily available. It is also recommended that businesses seek legal counsel to address specific compliance issues related to competition law.
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