Advertising & Media

Fines Take Effect in Lithuania for 'Green' Promises Without Evidence

As of 27 September, the norms of the EU directive on environmental claims are in force in Lithuania: the words 'green' and 'sustainable' require evidence, with fines of up to 3% of annual turnover.

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Nepagrįsti žalieji pažadai tapo rizika verslui
Nepagrįsti žalieji pažadai tapo rizika versluiAI-generated

As of 27 September, amendments to Lithuania's law banning unfair commercial practices against consumers are in force — they transpose into national law the provisions of the EU directive on empowering consumers for the green transition. Companies may now use the words 'green', 'sustainable' and 'eco-friendly' only if they substantiate them with officially recognised evidence of environmental performance. The fine for violations reaches up to 3% of annual turnover, but no more than 100,000 euros.

What do the new rules change?

The law prohibits attributing an advantage to an entire product or activity if it applies only to one characteristic or a single stage. A product may not be presented as having a positive, neutral or reduced climate impact if the claim is based solely on the offsetting of greenhouse gas emissions rather than on actual emissions reductions in the production cycle.

It is also prohibited to present as a unique advantage a feature that is already mandatory for all goods in that category under legislation. Sustainability labels outside recognised certification schemes fall under the requirements. Any text, image, symbol or brand name in commercial communication that creates an impression of positive or neutral environmental impact is considered an environmental claim.

'Speak with facts, not conclusions'

Kotryna Žukauskaitė-Šiaučiulėnė, head of the sustainability culture division at the producers' and importers' association 'Gamtos ateitis' ('Future of Nature'), explains the essence of the changes for practitioners:

'Instead of presenting the consumer with a conclusion, companies are now obliged to speak with facts — on that basis, people will be able to assess the product themselves. For example, it is not enough to say that a cake's packaging is sustainable: it must be clearly stated whether this refers to the entire product or only to the packaging. If the claim concerns the packaging, a specific substantiated fact may appear in the communication — for instance, that 30% less plastic was used to produce it.'

According to her, the requirements also apply to products manufactured outside the EU and placed on the Union's market, including through e-commerce.

'I hear concerns that businesses will stop talking about sustainability altogether, but I don't believe that. For companies that have already invested in changes and collected evidence, the new rules are beneficial: they make it possible to show more clearly how their efforts differ from unfounded promises,' she notes.

Who will check, and how?

Oversight in Lithuania is carried out by the State Consumer Rights Protection Authority (VVTAT). During an investigation, it may demand information, documents and justification of claims from a company. Evidence must be collected before a claim is published on packaging, in advertising or on a website. The authority assesses not only the text but also the overall impression of the advertising.

Penalties:

  • first violation — a warning or a fine of up to 3% of turnover for the previous financial year, with a maximum of 100,000 euros;

  • a repeat violation within a year — up to 6% of annual turnover, with a maximum of 200,000 euros;

  • for violations widespread across the EU, fines may be higher.

  • Both consumers and their associations, as well as institutions, can report violations.

    How retail and manufacturers prepared

    Monika Anilionė, head of the corporate affairs and communications department at UAB 'Lidl Lietuva', said the chain had in advance audited the packaging, marketing and communications of its own brands. 'We rely only on internationally recognised independent certifications — FSC, Rainforest Alliance, Fairtrade — while the energy efficiency of our stores is confirmed by the ISO 50001 standard and EDGE building certificates,' she said.

    Živilė Dimšienė, marketing director of UAB 'Biržų duona', noted that the inspection did not reveal general wording on packaging such as '100% recyclable' requiring removal. She calls packaging choice a balance of criteria: 'First of all, it must protect the product and preserve its quality throughout its shelf life. We assess the amount of materials, technological capabilities, supply reliability and price — the environmental aspect is important, but it cannot be considered separately from product protection.'

    Žukauskaitė-Šiaučiulėnė added that, together with the new EU regulation on packaging and packaging waste, the requirements push businesses to take greater responsibility for the impact of packaging and how it is presented to customers.

    Source: Verslo žinios

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