Germany is set to enforce new regulations on sustainability labels and certification schemes starting September 27, 2026. This move, part of Germany’s Third Act Amending the Act Against Unfair Competition (UWG), aims to align with the EU EmpCo Directive (2024/825) by mandating that companies using environmental, social, or employer-related seals comply with revised EU standards. The reform introduces tighter rules for sustainability labels and certain employer seals utilized in marketing and recruitment efforts.
The updated regulation will impose restrictions on labels that do not stem from recognized certification systems or are not established by public authorities. These rules extend beyond environmental claims, potentially impacting social criteria such as workplace conditions, employee satisfaction, fairness, and diversity, contingent on the type of seal used. To be considered valid, a certification scheme must fulfill several conditions, including transparent documentation, publicly accessible criteria, equal access for organizations, and independent third-party verification.
Implications of this regulatory update could extend to international companies, including those not based in Germany but using employer or sustainability seals when addressing German audiences, clients, or job applicants. Businesses that rely on such certifications are encouraged to evaluate their providers, documentation, and verification processes to ensure compliance before these new rules come into effect. The focus of these regulations moves from merely assessing whether a claim is misleading to ensuring that the certification system supporting the claim is credible and independently verified.
Organizations that maintain transparent certification processes might gain enhanced trust, while unsupported marketing labels could face legal scrutiny. Industry experts advise companies to prepare by reviewing certification criteria, maintaining evidence of evaluation procedures, and ensuring that all supporting documents remain accessible. Additionally, firms should seek legal counsel for specific compliance questions related to competition law.
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