Stricter EU greenwashing rules risk creating cosmetic waste

Cosmetics industry groups are calling on the European Commission (EC) to introduce transition measures for the upcoming anti-greenwashing rules. The new requirements will take effect in September, as part of the Empowering Consumers for the Green Transition (ECGT) directive. 

An alliance of 18 European business associations, including the International Natural and Organic Cosmetics Association (Natrue), argues that applying the new green claims rules to existing stock could create unnecessary waste and high costs.

The group is calling for a “grandfathering” clause that would allow cosmetic products already lawfully placed on the market before the application date to continue being sold.

With many of the upcoming rules expected to cause considerable legal uncertainty for cosmetics players, Dr. Mark Smith, director general of Natrue, tells Personal Care Insights that some companies may abandon sustainability positioning altogether. 

“In cases where there may be legal uncertainty about the regulatory framework related to a certain claim, it is possible that brands may be less willing to communicate certain attributes to avoid any potential non-compliance, legal challenges, or punitive measures — including reputational,” he says.

Trickle-down troubles

The ECGT targets misleading sustainability marketing and aims to ensure that consumers receive clearer, more reliable information on their products. 

However, Smith notes there is a “non-exhaustive list of potential claims” that the directive may affect, and the EC’s proposed solutions — like adding stickers to packs — may not soften the blow for cosmetics companies. 

Natrue notes that small and medium enterprises (SMEs) are likely to be the most affected by the ECGT, as many operate in the natural and organic cosmetics sector.

“Due to their inherent size and scale, for SMEs the primary difficulty will be the logistical challenges and absorbing any economic costs where products may need to be evaluated for compliance, withdrawn, or relabelled due to limited resources,” Smith explains.

While the cosmetics association champions the directive’s end goal, it asserts that there are practical challenges in handling cosmetic products already in warehouses, distribution channels, and retail shelves — especially by the time the new rules come into force. 

In its guidance, the EC pointed to potential compliance options, such as adding stickers to packaging or providing extra information at the point of sale. However, Smith says these proposed solutions may not be straightforward for cosmetics products, as they often face strict packaging and labelling requirements.

Industry groups warn that stricter green claims rules could create waste if existing beauty stock cannot be sold.“For cosmetic products, such solutions may present challenges such as limitations on existing packaging space, logistics, associated cost to cover stored and distributed stock, as well as care to maintain legally compliant labelling requirements that already apply,” he says.

The joint business statement also raises these concerns, warning that corrective measures such as relabelling or repackaging products could lead to additional waste and disrupt supply chains. 

Curveball claims 

Natrue warns that a wide range of sustainability messaging commonly used in cosmetics could fall under the directive’s scope, including claims already printed on product packaging or applied through on-pack icons and logos.

The association says the directive can cover “any label that communicates sustainability characteristics — environmental, social, or both — that is not supported by a third-party certification scheme or one that a public authority has established.”

The directive also prohibits any generic environmental claim listed in Annex I of the Unfair Commercial Practices Directive, the EU law that contains the blacklist of practices always considered misleading and unfair.

A company may only use a claim from the list if it can be demonstrated by “recognized excellent environmental performance,” including compliance with officially recognized ecolabelling schemes under EN ISO 14024.

“These generic claims can include, but are not limited to, claims that suggest or create the impression of excellent environmental performance, such as ‘environmentally friendly,’ ‘eco-friendly,’ ‘green,’ ‘biodegradable,’ or ‘biobased,’” Smith says.

He adds that the rules may cover any environmental claims that suggest the product has a positive impact or no impact on the environment, is less damaging to the environment than other products, brands or traders, or has improved its impact over time.

Moreover, the directive could target products that make broad environmental claims that only a certain characteristic of the product is representative of, such as a specific ingredient claim transposed to the entire formulation or product.

Comparative claims could also come into scrutiny, according to Smith. “Any comparative claim will be considered misleading if it is not substantiated by the information about the method of comparison, the products compared, or the suppliers of those products,” he explains.

Carbon-related messaging will also become stricter, including claims based on carbon offsetting that indicate a product has a neutral, reduced, or positive environmental impact related to its greenhouse gas emissions. 

Cosmetics brands may need to rethink sustainability labels and on-pack icons to avoid misleading consumers.The association says any legal compliance claims made in a business-to-consumer context, such as labeling a formula “deforestation-free,” would also be targeted by the directive.

“These requirements affect any product on the market from the date of application, which may include current and will include any future product launches,” Smith says.

Preventive R&D 

Natrue says personal care companies should start their compliance reviews early, to prepare for the upcoming rules, should no transitional period be granted. 

“Evaluate products present or to be placed on the EU market from 27 September 2026 with respect to sustainability labels and environmental claims. This can include packaging, marketing materials, and digital channels,” Smith says.

Natrue advises brands to integrate claim assessment into the product development phase going forward. Companies could conduct a risk assessment to ensure that claims within the scope of the directive are specific, justified, and verified.

Then, if necessary, the cosmetics body suggests identifying potential claim modifications or relabelling while clearing stock in time.

“Natrue strongly encourages the use of robust third-party certification schemes that provide a high level of transparency and independent verification,” Smith concludes.