Germany tightens rules on sustainability seals, employer awards affected

On 19 February 2026 Germany passed the Third Amendment to the Act against Unfair Competition (UWG), transposing EU Directive 2024/825 – “Empowering Consumers for the Green Transition”. The amendment seeks to protect consumers from misleading claims about environmental and social attributes.

From 27 September 2026, any sustainability seal – including employer‑seal certifications that tout fair wages, family‑friendly policies, diversity or training – may be used only if it is based on a recognised certification system or is mandated by the state. The law bans the use of such seals when these conditions are not met, irrespective of whether the underlying statement is true, exposing companies to potential legal challenges.