EmpCo Directive from 27 September 2026: Last-minute rules for existing stock

 

In a few days, new rules on environmental and sustainability advertising will come into force. Shortly before the deadline, the German legislature has introduced a special provision for existing stock. We summarise the latest developments below and explain how they will play out in practice.

Status quo: deadline of 27 September 2026

Since the German implementing act was promulgated in the Federal Law Gazette (Bundesgesetzblatt) (in German only), the incorporation of the Empowering Consumers Directive (Directive (EU) 2024/825, “EmpCo Directive”) into national law has essentially been completed.

Under EU law, the new provisions must be applied from 27 September 2026. The decisive factor for their application is the offering, advertising and presentation of products to consumers, rather than the date on which a product was manufactured or its packaging printed. This means that the new requirements in principle also apply to items held in stock and products that are already being traded.

An overview of the various provisions can be found in our previous insight (in German only).

Momentum in relation to transitional periods: new section 15b of the German Unfair Commercial Practices Act

During the German legislative process, there were heated debates about the absence of a grace period for selling off existing stock, especially for slow-moving products that are stored for long periods and take a long time to be sold off. The German lower house of parliament, the Bundestag, considered a national grace period to be ruled out under EU law, since the Directive does not leave any scope for this. For this reason, it restricted itself to a resolution calling on the German government to advocate for a transitional solution at European level.

This is now set to change: at the eleventh hour, the government has surprisingly introduced a new section 15b of the draft German Unfair Commercial Practices Act (Gesetz gegen den unlauteren Wettbewerb) in the Committee on Legal Affairs and Consumer Protection. The provision is to be adopted by the Bundestag on 24 September 2026 as part of the German Act on the Modernisation of Design Law (Gesetz zur Modernisierung des Designrecht).

As far as is known at present, claims for an injunction due to infringements of the EmpCo requirements relating to goods placed on the market before 27 September 2026 will only be enforceable subject to the principle of proportionality.

This requires the various interests to be weighed up, giving special attention to:

• how serious the infringement is,
• the efforts already undertaken by the company to achieve compliance with EmpCo,
• the costs associated with rectifying the infringement and
• the environmental impact that would result from destroying stock, for example.

Given this, section 15b of the draft Unfair Commercial Practices Act does not constitute a carte blanche for selling off all existing stock but requires interests to be weighed up on a case-by-case basis. Yet neither digital sustainability communications (particularly on websites and social media channels) nor printed advertising materials are covered by this. They still have to be fully EmpCo-compliant when the deadline is reached. The rule is also limited to two years and is set to expire on 26 September 2028.

Often overlooked: harmonised guarantee label and information on warranty rights

In the current debate on transitional periods, one often-overlooked aspect of the EmpCo Directive should be borne in mind: the provisions on the harmonised EU guarantee label (known as the “GARAN label”) and on harmonised provision of information regarding warranty rights.

From 27 September 2026, in B2C transactions traders have to provide a clearly visible notice on statutory warranty rights, which is harmonised across the EU, before entering into a contract. In addition, the GARAN label must be used where a manufacturer grants a free commercial guarantee of durability covering the entire product for a period of more than two years and actively provides the trader with the necessary information.

Breaches of these pre-contractual information requirements can be prosecuted as unfair commercial practices under sections 5 and 5a of the Unfair Commercial Practices Act. Further information on the provisions can be found in our insight.

According to media reports, the labelling requirements for the GARAN label are also set to be relaxed shortly before the rules come into force. Under certain conditions, retailers will be allowed to use a collective label for several products on a shelf instead of labelling each product separately with a GARAN label. However, no details on this have been made public as yet.

Practical recommendations

Regardless of the proposed new rules, companies should continue to monitor the new requirements of the EmpCo Directive or take immediate action, if they have not done so already. The association Environmental Action Germany (Deutsche Umwelthilfe) has already announced that it will continue its market surveillance activities “with the EmpCo behind it” and take legal action against significant infringements.

We would be happy to help you adapt your advertising strategy and labelling practices to the new requirements and make the best possible use of any scope for manoeuvre still remaining.