Antitrust & Competition

Greenwashing litigation is on the rise and entails both financial as well as reputational risks. Businesses are increasingly coming under pressure to substantiate claims they make about the environmental footprint of their products, facing legal and financial liability if they get caught up in greenwashing. Litigation entails both financial as well as reputational risks. Given the risks involved, a sound understanding of competition law and how it relates to environmental initiatives is key to the success of your environmental projects.

Greenwashing involves a company employing advertising and public communication tactics to create a facade of being more environmentally conscious and sustainable than its actual practices reflect. This strategy is frequently employed by certain businesses to divert consumers‘ attention from the significant environmental harm and negative impacts caused by their  operations. Instances of greenwashing can be observed in advertising, sponsorships, and public messaging across various media platforms, including social media.

In general, antitrust and competition  laws are designed to promote fair competition in the market and prevent anti-competitive practices that could harm consumers and limit economic efficiency. In the context of environmental governance, these laws can be used to discourage environmentally harmful monopolistic practices, encourage innovation in sustainable technologies, and foster the development of good environmental practices.