Greenwashing by competitors damages your market position by misleading consumers through false sustainability claims. You can take legal action via preliminary injunction proceedings, file a report with the Netherlands Authority for Consumers and Markets (ACM), or lodge a complaint with the Advertising Code Committee to stop misleading advertising and potentially claim damages.
Misleading sustainability claims distort competitive relationships between businesses. When a competitor presents itself as more sustainable than it actually is, they attract consumers based on false information. This phenomenon costs honest businesses market share and undermines trust in sustainability claims. The District Court of Amsterdam ruled in 2024 that various advertising statements by KLM about environmental benefits were misleading and unlawful. This judgment demonstrates that courts take misleading environmental claims seriously.
What Constitutes Greenwashing Under Dutch Law?
Greenwashing is a form of misleading advertising where businesses present themselves as more sustainable than they actually are by making false or incomplete environmental claims. The implementation of the European Directive on Unfair Commercial Practices into the Dutch Civil Code forms the legal framework for assessing such environmental claims. According to this legislation, sustainability claims must be truthful and must not be accompanied by false information.
Examples of greenwashing include:
- An energy supplier claiming that the majority of green electricity in the Netherlands is generated domestically, while only 20% is actually Dutch
- A clothing website with a “sustainability” filter without explaining what makes the selected products sustainable
- A milk carton claiming “30% less CO2 emissions” without clarifying this only applies to the packaging
Moreover, claims must be based on solid, independent, and verifiable evidence according to updated scientific methods.
How Do You Establish That Greenwashing Exists Under Dutch Law?
You must establish through objective research that your competitor’s advertising statement is genuinely false before taking legal action. The ACM applies five rules of thumb that you can use as an assessment framework. Sustainability claims must be accurate, clear, specific, and complete. Furthermore, competitors must be able to substantiate their claims with facts and keep them current.
Verify whether the competitor adheres to these criteria:
- Specificity: Does the claim describe what concrete sustainability benefit the product has?
- Substantiation: Are the claims based on verifiable and recognized evidence?
- Fairness: Are comparisons with other products or businesses fair and correct?
- Measurability: Are future sustainability ambitions described concretely and measurably?
- Clarity: Are visual claims and quality marks helpful and not confusing?
Document your findings in a written research report with evidence. This documentation forms the basis for further legal steps. As a competitor in the same market, you usually possess sufficient knowledge to assess the accuracy of claims. Ensure that the research is conducted objectively and does not rely merely on assumptions.
What Legal Steps Can You Take in the Netherlands?
Upon establishing greenwashing, you can send a formal demand letter requiring cessation of the misleading advertising, followed by preliminary injunction proceedings if the competitor does not respond or responds negatively. An effective legal approach follows a phased strategy where you gradually increase pressure.
Step 1: Formal Demand Letter
Send a formal letter to the competitor explaining why the advertising statement is false. Reference your research report and the ACM’s rules of thumb. In the demand letter, you require:
- Immediate cessation of the misleading advertising statement
- Possibly placement of a rectification in cases of serious misleading
- In cases of demonstrable damage: payment of compensation
Provide the competitor with a reasonable deadline to respond, for example 14 days. Approximately 40% of cases are resolved at this stage as businesses adjust their claims to avoid legal proceedings.
Step 2: Preliminary Injunction Proceedings
When the competitor does not respond or responds negatively, you initiate preliminary injunction proceedings before the preliminary relief judge. Here you request:
- A prohibition on the misleading advertising statement
- Penalty payments for violation of the prohibition
- Rectification to restore damage to your reputation
- Reimbursement of legal costs
The preliminary relief judge typically decides within several weeks. Your objective research report plays an important role in the evidence. Court fees for preliminary injunction proceedings start at €664 for legal entities. Additionally, attorney costs depend on the complexity of the case.
Step 3: Main Proceedings for Damages
If greenwashing has caused concrete revenue losses, you can attempt to recover the damages from the competitor through main proceedings. However, proving damages is challenging because you must demonstrate that consumers specifically chose the competitor due to misleading claims rather than your products. Economic research or market analyses can assist in this regard.
Possible damage items include:
- Lost revenue due to market share loss
- Costs for own adjustments to sustainability claims
- Reputational damage and image loss
- Costs for restoring market position
Main proceedings take longer than preliminary injunction proceedings but do offer the possibility of full compensation. In approximately 30% of cases, this results in a settlement where the competitor ultimately pays.
What Role Does the ACM Play in Greenwashing Cases Under Dutch Law?
The Netherlands Authority for Consumers and Markets actively supervises misleading sustainability claims and can impose fines up to €900,000 or 10% of annual turnover. The ACM published the ‘Guidance on Sustainability Claims’ in late January 2021, explaining how businesses must apply consumer protection legislation regarding unfair commercial practices.
Filing a Report with the ACM
Besides taking legal action yourself, it is advisable to file a report with the ACM. The regulator does not investigate every report, but multiple complaints about the same business increase urgency. The ACM can then:
- Initiate an investigation into the sustainability claims
- Send a letter to the business demanding adjustments
- Impose fines for established violations
- Publicize violations as a deterrent
In May 2021, the ACM wrote to over 170 businesses in the energy, dairy, and clothing sectors urging them to review their sustainability claims. The regulator subsequently monitored the effect and published results. Companies such as DHL and PostNL adjusted their sustainability claims after ACM intervention.
Sector-Specific Attention
The transport sector receives special attention from the ACM due to high environmental impact and frequent greenwashing. The regulator has taken action against cruise companies and carriers such as KPN, DHL, and DPD. This focus protects not only consumers but also honest businesses in these sectors against unfair competition.
Can the Advertising Code Committee Help Under Dutch Law?
You can file a complaint about greenwashing with the Advertising Code Committee, the self-regulatory body that supervises compliance with advertising rules in the Netherlands. The Advertising Code Foundation was established by market parties to ensure self-regulation. Although decisions of the Advertising Code Committee are not legally binding, they do carry authoritative weight.
Benefits of a Complaint with the ACC
A complaint procedure with the Advertising Code Committee offers advantages:
- Lower costs than a legal procedure
- Faster processing than through courts
- Public ruling that causes reputational damage
- Pressure on competitors to adjust claims
- Possibility of combining with other legal steps
Approximately 75% of businesses adjust their advertising statements after a negative ruling from the Advertising Code Committee, even though this is not legally mandatory. The reputational damage and publicity work preventively. You can combine this route with a report to the ACM and civil proceedings for maximum effect.
What Are the Consequences of Greenwashing for Competitors in the Netherlands?
Greenwashing leads to reputational damage through prohibitions and rectifications, compensation obligations, possible contract terminations, and ACM fines ranging from €900,000 to 10% of annual turnover. This combination of sanctions makes greenwashing financially risky for businesses. The District Court of Amsterdam prohibited KLM in 2024 from making misleading advertising statements about sustainable fuels and reforestation, leading to significant negative publicity.
Civil Law Consequences
Regarding contracts between businesses, the regulation on unfair commercial practices does not apply. However, other legal instruments provide protection:
- Mistake: The contract would not have been concluded without the misleading claim
- Non-conformity: The product or service does not meet expectations
- Breach of contract: Violation of sustainability obligations in general terms and conditions
- Liability: Compensation for damages suffered due to deception
Increasingly, general terms and conditions contain specific sustainability requirements. For example, suppliers to supermarkets must often meet certain environmental requirements. In cases of misleading claims, they can be held liable and contracts can be terminated. Businesses then lose valuable trading relationships.
Public Reputational Damage
Besides financial sanctions, greenwashing causes lasting reputational damage. Media attention to lawsuits and ACM investigations significantly harms brand image. Consumers and business partners lose trust in the business. This image damage is often more costly than fines or legal costs because recovery can take years.
How Is Legislation Around Greenwashing Changing in Dutch Law?
On March 26, 2024, the directive to strengthen the consumer’s position for the green transition entered into force, which must be implemented in the Netherlands by March 27, 2026 at the latest. This directive significantly tightens requirements for sustainability claims. Businesses must substantiate future environmental performance with a concrete action plan setting measurable and time-bound objectives.
Draft Directive with Stricter Requirements
A new draft directive establishes additional minimum criteria for businesses with more than 10 employees and annual turnover above €2 million:
- Environmental claims must be based on recognized scientific methods and current technical knowledge
- Claims must specify whether they concern the entire product or only a portion
- Comparative environmental claims are subject to additional conditions
- Substantiation must be independently verified by external parties
This stricter regulation makes it easier for you as an affected business to demonstrate greenwashing. Competitors can less easily hide behind vague formulations or unverified claims. Additionally, mandatory external verification increases the reliability of sustainability claims in the market.
Practical Consequences for Businesses
Tightened legislation leads to higher compliance costs for all businesses making sustainability claims. External verification and scientific substantiation require investments in research and certification. Simultaneously, this creates a more level playing field where honest businesses are rewarded for their actual sustainability efforts. Businesses that now invest in correct claims will gain competitive advantage in several years.
What Is Your Burden of Proof as an Affected Business Under Dutch Law?
You must be able to objectively demonstrate that your competitor’s sustainability claim is factually false and that this claim misleads the average consumer. The burden of proof rests with you as the claiming party. Therefore, thorough preliminary research is essential before taking legal action. An Amsterdam-based business in the clothing industry, for example, collected evidence about a competitor’s CO2 emissions claims for three months before initiating preliminary injunction proceedings.
Elements of Strong Evidence
Effective evidence includes:
- Technical analysis: Independent research into the actual sustainability of products or services
- Comparative research: Objective comparison with industry standards and scientific benchmarks
- Documentation: Screenshots, advertisements, websites, and other statements from the competitor
- Consumer research: Surveys demonstrating that consumers are misled
- Market analysis: Data on market share shifts and revenue losses
Carefully preserve all communication with the competitor. Emails, letters, and other correspondence can demonstrate that you correctly attempted to resolve the matter amicably. Courts appreciate constructive attempts at resolution before approaching them. This significantly strengthens your position in any proceedings.
Engaging Experts
Consider engaging technical experts or environmental advisors who can prepare an independent report. Such expertise carries great evidentiary weight before courts. Costs for expertise can potentially be recovered from the losing party later. A specialized law firm in Amsterdam can advise you on the most effective evidence strategy for your specific situation.
How Do You Prevent Greenwashing Accusations Against Your Own Business in the Netherlands?
Substantiate your own sustainability claims with verifiable facts, use specific and complete information, and have claims independently verified to minimize legal risks. Prevention is cheaper than legal proceedings. Approximately 85% of greenwashing claims could be prevented through correct substantiation and advance verification.
Best Practices for Honest Sustainability Claims
Follow these guidelines for your own claims:
- Use concrete figures and percentages with clear context
- Specify the scope of your claim (product, packaging, production process)
- Base claims on independently verified data
- Regularly update claims based on new insights
- Avoid general terms like “green” or “sustainable” without specification
- Use recognized quality marks and certifications where possible
Pay close attention to fine print in contracts with customers and suppliers. Sustainability obligations are formulated increasingly specifically and measurably. Ensure your organization can actually fulfill what you promise in contractual agreements. Violation can lead to liability and termination of lucrative contracts.
Contact a specialized attorney for legal advice about your sustainability communication. A preventive review of your marketing statements costs less than legal proceedings afterward. Attorneys in Amsterdam with experience in competition law and advertising law can assess your claims for legal validity.
Why Is Quick Action Important in Greenwashing Cases Under Dutch Law?
The longer misleading sustainability claims by your competitor remain unchallenged, the more damage you suffer to market position and revenue, and the more difficult it becomes to win back consumers. Moreover, delay in taking action can weaken your position in legal proceedings. Courts may question why you did not take action earlier if the deception was truly so harmful.
Competitive Disadvantages of Greenwashing
Misleading sustainability claims cause immediate competitive disadvantage:
- Consumers choose the competitor based on false information
- Your investments in genuine sustainability pay off less
- Price competition is distorted because greenwashing is cheaper than genuine sustainability
- Your reputation suffers because consumers view all sustainability claims with suspicion
- Business partners doubt the value of sustainability certifications
In sectors where sustainability is an important purchasing factor, greenwashing by one player can damage trust in the entire industry. Therefore, industry associations also have an interest in enforcement against greenwashing.
Do you want certainty about your legal options against greenwashing by a competitor? An attorney specialized in competition law analyzes your situation and advises on the best strategy to address misleading sustainability claims and protect your market position.
What Costs Are Associated with Legal Action in the Netherlands?
Costs for legal action against greenwashing range from several thousand euros for a formal demand letter to €15,000 or more for preliminary injunction proceedings including attorney costs. Upon winning, you can recover part of these costs from the losing party according to the liquidation rate. Main proceedings for compensation are more expensive but can yield substantial amounts.
Cost Specification
A realistic cost estimate includes:
- Preliminary research: €2,000 to €5,000 for objective analysis and documentation
- Formal demand letter: €1,000 to €2,500 depending on complexity
- Court fees preliminary injunction: €664 for legal entities
- Attorney costs preliminary injunction: €5,000 to €15,000 depending on hearings and complexity
- Expert report: €3,000 to €10,000 for technical analysis
- Main proceedings: from €10,000 for undisputed cases to €50,000 or more for complex disputes
Approximately 60% of legal costs can be recovered from the losing party via the liquidation rate. Actual attorney costs are usually higher, meaning a portion remains your responsibility. Therefore, also consider alternative dispute resolution such as mediation when the competitor is willing to negotiate.
Cost-Benefit Analysis
Prepare a cost-benefit analysis in advance. Calculate your estimated revenue loss due to greenwashing and compare this with legal costs. For revenue losses above €50,000, legal action usually pays off. Additionally, you must consider strategic value: stopping misleading claims protects your long-term market position and prevents further damage.
Contact a law firm in Amsterdam for a non-binding quick assessment of your situation. Many firms offer an initial consultation without charge where they estimate whether legal action is promising and what the expected costs and returns are. This helps you make an informed decision about next steps.
Frequently Asked Questions
What legal evidence do I need to prove greenwashing by a competitor?
You need objective research demonstrating that your competitor’s sustainability claims are false or misleading. Document findings in a written report with evidence showing the claims violate the ACM’s five rules: accuracy, clarity, specificity, completeness, and substantiation. As a competitor in the same market, you typically possess sufficient knowledge to assess claim accuracy. Ensure research is conducted objectively using verifiable facts rather than assumptions to form a solid legal foundation.
How much can the ACM fine companies for greenwashing violations?
The Netherlands Authority for Consumers and Markets can impose fines up to €900,000 or 10% of annual turnover for misleading sustainability claims. The ACM actively supervises greenwashing and published guidance in January 2021 explaining consumer protection requirements. Besides fines, the regulator can demand claim adjustments, publicize violations, and send warning letters. In May 2021, the ACM contacted over 170 businesses requiring review of their sustainability claims, resulting in adjustments by companies including DHL and PostNL.
What damages can I claim if greenwashing caused revenue losses?
You can claim lost revenue from market share loss, costs for adjusting your own sustainability claims, reputational damage, and expenses for restoring market position through main proceedings. However, proving damages is challenging because you must demonstrate consumers specifically chose the competitor due to misleading claims rather than your products. Economic research or market analyses can support your case. Approximately 30% of cases result in settlements where competitors pay compensation, though proceedings take longer than preliminary injunction cases.
