Germany is poised to roll out new sustainability label and certification scheme regulations by September 27, 2026, necessitating that companies reassess their compliance with the latest EU standards. These regulations emerge from the Third Act Amending the Act Against Unfair Competition (UWG) and are in line with the EU EmpCo Directive (2024/825). The revised framework sets forth more stringent criteria for the use of sustainability labels and specific employer seals in marketing and recruitment activities.
Under this new legislation, labels that do not stem from recognized certification systems or public authorities might encounter restrictions. This encompasses not only environmental claims but also extends to social criteria, including workplace conditions, employee satisfaction, fairness, and diversity, depending on the specifics of the seal. To qualify as valid, a certification scheme must adhere to several requirements: transparency in documentation, availability of criteria to the public, equal access for organizations, and verification by an independent third party.
The implications of these regulations may be far-reaching, affecting international companies, even those based outside Germany, if they utilize employer or sustainability seals to appeal to German customers, employees, or job applicants. Businesses are encouraged to conduct thorough reviews of their certification providers, documentation, and verification processes well before the regulations come into force.
This regulatory update shifts the focus from merely assessing whether a claim is misleading to scrutinizing the credibility and independent verification of the certification system behind it. Organizations that maintain transparent certification processes are likely to gain increased trust from stakeholders, whereas those relying on unsupported marketing labels could face legal repercussions. Industry experts advise businesses to prepare by scrutinizing certification criteria, keeping evidence of evaluation procedures, and ensuring accessibility of all supporting documentation. Legal guidance is also recommended to navigate specific compliance issues concerning competition law.
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