Expensive words: Large fines for misleading environmental claims

The Danish Consumer Ombudsman reported a manufacturer for making misleading environmental claims in a campaign that violated the rules of the marketing act. As a result, the car manufacturer agreed to pay a fine of one million kroner for violating the marketing act.

Under the marketing act, companies must not provide false or misleading information, omit essential details, or present information unclearly. Additionally, companies must be able to document the accuracy of claims about their products' or services' environmental impact.

Companies may face fines if they do not observe the rules.

“Certified environmentally friendly” or misleading?

In this case, the car manufacturer used phrases such as “certified environmentally friendly”, “the green revolution,” and “CO2-neutral production” in marketing material from 2021 and 2022.

In 2023, the Consumer Ombudsman reported the company to the police, assessing that there was insufficient documentation for these claims.

The company explained that the use of the word “certified” was due to a translation error, which they promptly corrected. The Consumer Ombudsman acknowledged that the manufacturer had taken steps to reduce the cars' environmental impact. Nevertheless, the Consumer Ombudsman deemed a fine of one million kroner to be justified.

IUNO’s opinion

IUNO recommends that all companies ensure they can substantiate their environmental claims with relevant data that documents their statements. The Consumer Ombudsman says companies must be able to provide proof for their environmental claims—it’s not enough to just make them seem plausible.

Companies that are unsure whether a campaign meets the rules, can get it pre-approved by the Consumer Ombudsman. In such cases, companies must apply for approval before launching the campaign. This approval can help companies adhere to the rules and avoid fines.

At IUNO, we guide companies through the regulations and offer support in drafting applications for campaign pre-approval.

[The Danish Consumer Ombudsman’s press release dated 7 November 2024]