EmpCo: environmental claims and labels

What penalties apply for infringements?

For cross-border infringements of European consumer protection rules, member states must provide for maximum fines amounting to at least 4% of the company’s annual turnover in the member states concerned.

On top of that come the classic consequences of competition law: warning letters, cease-and-desist undertakings, interim injunctions and cost reimbursement, each forcing a rapid change of packaging and advertising material.

The 4 per cent is a floor for the maximum, not a standard penalty. In economic terms competition law usually weighs more heavily in practice: an interim injunction can be issued within days and forces an immediate change while the packaging material is already produced and sitting in the warehouse.

Sources: German Unfair Competition Act (UWG)

Editorial responsibility: Malte Biss, CEO & Founder of flustix