EU Implements Tougher Rules to Combat Greenwashing

The European Commission has published its "Green Claims Directive" to prevent companies from making unsubstantiated environmental claims about their products, warning firms they could soon face penalties amounting to at least 4% of their annual revenue for "greenwashing." However, campaigners have called on the European Parliament and the Council to improve the proposals so that they are "of value" to consumers and companies. Greenwashing refers to the marketing practice in which businesses seek to capitalize on the growing movement for environmentally sound products by selling goods labeled as green that actually aren't.