Greenwashing Regulation in Poland
Updated: 14.08.2024
What is greenwashing, and how is it regulated and penalized in Polish law?
Greenwashing is a practice where companies create a false or misleading impression that their products are more environmentally friendly than they actually are. With the growing environmental awareness among consumers, marketing based on pro-environmental slogans can seem like an effective strategy.
However, greenwashing undermines consumer trust and can lead to misguided purchasing decisions that do not benefit the environment.
What are the examples of greenwashing?
The easiest to identify example of greenwashing is the unauthorized use of eco-certifications. Companies may claim that their products meet certain environmental standards even though they do not possess the appropriate certifications.
This type of fraud is particularly harmful because consumers trust these labels and believe that the product has been vetted by independent institutions.
Selective presentation of information and environmental benefits
Greenwashing can also take more subtle forms. Companies often focus on one positive aspect of a product, such as packaging made from recycled materials, while ignoring other, more environmentally harmful characteristics of the product.
This selective presentation of information can mislead consumers about the actual environmental impact of the product.
Environmental claims and ecological slogans without evidence
Another common practice is using ecological slogans that are not backed by any external certifications or cannot be easily verified. For example, a manufacturer may claim that the ingredients of a product come from sustainable sources without providing evidence to support this claim.
General labels – “environmentally friendly”
Greenwashing also includes using labels that are too general to have any specific meaning, such as “environmentally friendly.” These terms do not provide consumers with concrete information and can be easily abused.
Non distinguishing slogans
Another example is advertising products with slogans that do not distinguish them from other products in the same category. An example could be claiming that a product is free of CFCs when their use is already legally banned.
Polish regulations on greenwashing
The Polish Act on Counteracting Unfair Market Practices considers misleading actions that may cause an average consumer to make a contractual decision they would not otherwise make as unfair practices.
Misleading actions can pertain to various product characteristics, such as geographical origin, manufacturing method, ingredients, or obtained certifications. This broad definition allows the Act to apply to many practices that qualify as greenwashing.
Act on Combating Unfair Competition
Additionally, the Act on Combating Unfair Competition recognizes:
- the use of misleading markings on goods or services,
- the dissemination of false information about products, and
- the use of misleading advertising as acts of unfair competition.
All these actions can include greenwashing due to their purpose.
Sanctions for greenwashing in Poland
Polish regulations provide various sanctions for entrepreneurs engaging in greenwashing. Under the Act on Combating Unfair Competition, entrepreneurs may be required to:
- cease the unfair practice,
- eliminate its effects,
- issue appropriate statements,
- compensate for damages.
Additionally, the court may order the destruction of products subject to misleading advertising. These claims can be pursued by other entrepreneurs whose interests have been violated.
The Act on Counteracting Unfair Market Practices allows consumers to:
- demand the removal of the effects of prohibited practices,
- annulment of contracts, and
- cessation of misleading actions.
Greenwashing practices can also be considered as violating the collective interests of consumers in proceedings conducted by the President of the Office of Competition and Consumer Protection (UOKiK).
The Act on Competition and Consumer Protection provides that such practices may lead to the imposition of a fine on the entrepreneur, which can amount to up to 10% of the turnover achieved in the year preceding the imposition of the fine.
EU regulations against greenwashing – consumer and environmental protection
The European Parliament is intensively working on updating regulations regarding commercial practices and consumer protection, aiming to better protect consumer rights, support environmentally friendly decisions, and promote a circular economy. In these efforts, particular attention is given to combating pseudo-environmental marketing.
EU Greenwashing prohibitions
To effectively counter such actions, the EU is introducing a ban on:
- General, unverified environmental claims about products – any claim regarding the environmental impact of a product must be based on verifiable evidence.
- Claims of neutral, limited, or positive environmental impact resulting from offsetting greenhouse gas emissions – manufacturers will not be able to claim their products are environmentally friendly simply because they offset emissions.
- Sustainability labels without approved certification – only products that have passed through approved certification systems or are recognized by public authorities can be labeled as sustainable.
The European Parliament also aims to ensure that consumers are fully aware of the warranty period during which they can demand the repair of faulty products at the seller’s expense. Under EU law, products have a minimum two-year warranty, but new regulations will introduce labeling for products with an extended warranty period.
The EU will also prohibit:
- Advertising goods with design features that may shorten the product’s lifespan.
- Unsubstantiated and unsupported claims about durability.
- Presenting products as repairable when they are not.
Support to sustainable consumption
The EU does not stop at fighting greenwashing. Work on other regulations supporting sustainable consumption includes:
- Environmental claims – introducing a verification system for companies that want to declare their environmental actions. Companies must provide evidence to support their claims and obtain approval from designated verifiers.
- Ecodesign – introducing minimum standards regulating the product development stage to ensure that almost all products on the EU market are sustainable, durable, and environmentally friendly.
- Right to repair – guaranteeing consumers the right to repair products and supporting repair instead of disposal and purchasing new products.
In March 2022, the European Commission proposed an update to EU consumer regulations to support the green transition. In September 2023, the Parliament and the Council reached a preliminary agreement on these changes. The agreement was approved by the European Parliament in January 2024, and then by the Council in February 2024.
Member States have 24 months to incorporate these changes into their national laws.
FAQ on Greenwashing Regulation in Poland
What is greenwashing, and how does it impact consumers and the environment?
Greenwashing is a practice where companies make false or misleading environmental claims, such as stating their products are eco-friendly or have a reduced carbon footprint without substantiation.
This can lead consumers to believe they are combating climate change and supporting a sustainable future when such claims are unsubstantiated. The impact includes potential harm to the environment, harm of consumer trust, and a significant impact on the market for genuinely sustainable products.
How are sustainability claims regulated under Polish law?
In Poland, the Act on Counteracting Unfair Market Practices and the Act on Combating Unfair Competition regulate sustainability claims. Misleading actions, including false or unverified sustainability claims, are considered unfair practices.
These laws mandate that any explicit environmental claims, such as those about carbon neutrality, must be backed by verifiable evidence, protecting consumers from being misled by greenwashing tactics.
What sanctions can companies face for greenwashing in Poland?
Companies found guilty of greenwashing may face several sanctions, including ceasing the misleading practice, issuing corrective statements, compensating affected consumers or competitors, and potentially facing fines up to 10% of their annual turnover.
Additionally, products marketed with false environmental claims may be subject to destruction under court orders. These measures help ensure that companies engaging in false claims and greenwashed products are held accountable.
How does the European Union support combating greenwashing?
The European Union actively works to combat greenwashing through updated regulations that prohibit general, unverified environmental claims about products. The EU’s regulations ensure that any claim regarding a product’s environmental impact must be based on verifiable evidence.
Additionally, the EU bans sustainability labels and green claims without approved certification, supporting environmental stewardship, countering the climate crisis and promoting a sustainable planet.
What are some classic examples of greenwashing practices?
Classic examples of greenwashing include companies claiming their products are “environmentally friendly” without evidence, using vague terms like “sustainable” without certification, or highlighting minor eco-friendly aspects while ignoring significant environmental harms.
Other examples involve misleading labels, unsubstantiated carbon neutrality claims, and the use of carbon offsets without reducing actual emissions. Companies in sectors such as the fashion industry, food sectors, and financial institutions have been known to make such claims, mislead investors, and cause reputational damage.
What measures does Poland take to ensure companies adhere to sustainable practices?
Poland enforces the Act on Counteracting Unfair Market Practices and the Act on Combating Unfair Competition to ensure companies adhere to sustainable practices. These laws require that any sustainability claims, such as those about net zero commitments or recycled content, must be substantiated.
The regulations also allow for the annulment of contracts and cessation of misleading actions, supporting Poland’s efforts in combating climate change and promoting a sustainable future.