What is greenwashing? Meaning, the law and how to spot it
Greenwashing is making a product or business look greener than it is. How UK, EU and US rules treat a misleading claim, and how to spot one.
What is greenwashing?
Greenwashing means making a product, service or business look better for the environment than it really is. Directive (EU) 2024/825 calls that "misleading environmental claims ('greenwashing')".
You'll also see it spelled "greenwash" or "green wash", and a claim that misleads this way is "greenwashed".
Greenwashing definition
The European Commission describes it as companies "giving a false impression of their environmental impacts or benefits" (European Commission). The UK Green Claims Code never uses the word. It describes the same thing: a business makes claims, "or omits or hides information, to give the impression they are less harmful or more beneficial to the environment than they really are".
The DMCC Act and Directive 2024/825 enforce it as a misleading claim. In the US, the FTC treats misleading environmental claims as deception under Section 5 of the FTC Act, and the Green Guides set out its views on avoiding them. None of those texts creates a separate greenwashing offence. The Commission says 53% of green claims give vague, misleading or unfounded information, and 40% have no supporting evidence.
How the UK, EU and US deal with it
| Main rule | Status | |
|---|---|---|
| UK | Digital Markets, Competition and Consumers Act 2024 | CMA fines in force since 6 April 2025 |
| EU | Directive 2024/825, amending the Unfair Commercial Practices Directive | Applies from 27 September 2026, through national law |
| US | FTC Act Section 5. The Green Guides are guidance, not rules | Last revised 2012 |
In the UK, the DMCC Act's unfair-trading rules and direct CMA enforcement powers took effect on 6 April 2025. The maximum penalty is £300,000 or, if higher, 10% of turnover. A presentation can deceive "even if the information it contains is true".
The Green Claims Code is guidance, not law. Claims must be truthful and accurate, clear and unambiguous, and must not hide important information. They must use fair and meaningful comparisons, consider the full life cycle of the product or service, and be substantiated. Generic claims and offset-based neutrality claims are judged case by case under the Act and the Code. The UK has no equivalent of the EU bans described below. A retailer can also be liable for repeating a manufacturer's claim by stocking the product.
In March 2024, ASOS, Boohoo and George at Asda gave the CMA undertakings to stop using "eco" or "sustainable" without explanation, and to drop misleading nature imagery, without admitting wrongdoing or liability.
The EU's Directive 2024/825 bans some practices in all circumstances. A generic claim such as "eco-friendly" is banned unless the trader can demonstrate recognised excellent environmental performance relevant to the claim. So is a claim that a product is climate neutral, reduced or positive because of carbon offsets. A sustainability label needs a certification scheme, or it must be established by a public authority.
The separate Green Claims Directive proposal is still pending. A 2026 Commission document says negotiations are at a standstill, with no agreement expected in 2026 (Commission).
In the US, the FTC Green Guides say marketers "should not make unqualified general environmental benefit claims". But the Guides don't bind the FTC or the public, so the FTC still has to prove deception under Section 5. It asked for comment on updates in December 2022. On eCFR, Part 260 is still the 2012 text.
How to spot greenwashing
- Vague words. "Green", "sustainable" or "eco-friendly" with no explanation or no evidence (UK Code). Key information should sit next to the claim, with a QR code or link only for extra detail.
- Part sold as whole. One feature presented as the whole product or business (Directive 2024/825).
- Offset-based neutrality. "Climate neutral" or "CO₂ neutral certified" because of offsets, banned outright in the EU (Directive 2024/825).
- Self-made labels. A sustainability label with no certification scheme or public authority behind it (Directive 2024/825).
- Legal duties sold as extras. A requirement that applies to every product in the category, presented as a distinctive feature (Directive 2024/825).
- True but misleading figures. The FTC gives a rug labelled "50% more recycled content than before" when recycled fiber rose only from 2% to 3% (16 CFR Part 260).
- Unbacked net-zero pledges. A future claim with no public, verifiable commitments, no realistic plan with time-bound targets, or no independent third-party checks (Directive 2024/825).
Images, labels and brand or product names can be environmental claims too, in the EU (Directive 2024/825) and in the US (16 CFR Part 260). To check a specific claim against those texts, ask RegAffairs AI what counts as greenwashing.