How green are we? The GVH’s focus on misleading green claims
GVH’s market analysis
Based on the market analysis related to green claims published by the Hungarian Competition Authority (GVH) in January 2024, it is evident that domestic businesses communicate about sustainability in broad terms and in an unstructured manner. Various trust marks and logos (e.g., "Recycle me") are often used to endorse green operations. However, consumers are largely unaware of the precise meaning of these claims, leading to potential misunderstandings. Consequently, the GVH has advocated for the establishment of a multi-tiered, government-regulated sustainability labeling system.
Investigation into misleading green claims
While no legislative outcome has yet emerged from this initiative, a more serious approach by the authorities is already noticeable. On August 12, 2024, the GVH announced in a press release that it had launched investigations against several companies distributing mineral waters and soft drinks for their green claims related to PET bottles. Multiple companies are under scrutiny in three separate cases, but all are linked by a common theme: misleading communication regarding environmental impacts.
According to the press release, the conduct under investigation included commercial communications such as:
- "100% recycled PET bottle,"
- Promotion of the "Join the cycle" system,
- "Collect selectively!",
- "100% recyclable",
- "Bottle-to-bottle, 50% rePET",
and similar claims and visual presentations that likely misled consumers regarding green claims.
It is important to emphasize that the initiation of competition supervision proceedings does not imply that the involved companies have committed violations. These proceedings aim to clarify the facts and, through this process, prove the alleged violations. Consequently, prior to the conclusion of the investigation, it cannot be determined whether the behaviours described above were indeed unlawful. The key question in these cases is whether the companies can sufficiently substantiate their commercial communications.
The common feature of the likely misleading claims used in the advertising of the above products is that they relate to significant characteristics of the products, specifically their environmental impacts. According to the GVH, the challenged advertising claims are likely unfounded, and the companies probably do not possess adequate evidence to authenticate the environmental benefits of the bottles, thereby potentially making the claims unlawful.
GVH’s advice on green marketing
If you intend to promote your product, service, or business using green claims, the GVH recommends adhering to the following guidelines in their information leaflet on green claims too, published in 2020:
- Clearly articulate the environmental benefits of the product, service, or business operations, or program in a manner understandable to consumers.
- Ensure that consumers have the opportunity to verify the accuracy of the claims for themselves.
- Your claims should be verifiable, and your evidence should be clear, objective, and convincing. Consider whether your green claim is based on the most appropriate and up-to-date research, data, and measurement methodologies.
- It may be advisable to refrain from making a claim if the research or survey supporting it raises doubts about the environmental impacts.
- Continuously review the claims used in your communications to ensure they remain current.
- Do not present environmental benefits as a unique feature of your product or service if these benefits are otherwise available to consumers due to regulatory requirements or general market practice.
- When communicating about your sustainability efforts, focus on achieved results rather than commitments related to future performance.
The initiation of investigations related to PET bottle claims indicates that the GVH is monitoring green claims more closely and that stricter oversight can be expected in the future. If you have any questions related to green marketing, feel free to contact our firm; our expert team is at your disposal.