Starting on September 27, 2026, Germany will enforce new regulations concerning sustainability labels and certification schemes, compelling companies to ensure their compliance with the latest EU standards. This change is part of Germany’s Third Act Amending the Act Against Unfair Competition (UWG), which incorporates the EU EmpCo Directive (2024/825). The reform aims to impose more stringent requirements on sustainability labels and employer seals used in marketing and recruitment efforts.
The revised framework mandates that labels not derived from recognized certification systems or established by public authorities could face restrictions. The regulations cover a broad range of claims, extending beyond environmental assertions to potentially include social factors such as workplace conditions, employee satisfaction, fairness, and diversity, depending on the nature of the seal in question.
To be deemed valid, a certification scheme must adhere to several criteria: it must offer transparent documentation, have publicly available criteria, provide equal access for organizations, and undergo independent third-party verification. Companies are tasked with ensuring their seals are grounded in clear methodologies, audits, and reliable evaluation mechanisms.
This regulatory update could impact international businesses, including those based outside Germany, if they use employer or sustainability seals to engage with German customers, employees, or job applicants. Companies are encouraged to scrutinize their providers, documentation, and verification processes in preparation for the regulation’s enforcement. The new rules emphasize not only evaluating the misleading nature of a claim but also the credibility and independent verification of the certification systems behind those claims.
Industry experts advise businesses to prepare by reviewing certification criteria, maintaining documentation of evaluation procedures, and ensuring all supporting documents are readily accessible. They also recommend seeking legal guidance on specific compliance issues related to competition law. Organizations that demonstrate transparent certification processes could gain increased trust, while those relying on unsupported marketing labels might face legal challenges.
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