According to the HDE, the EU Empowering Consumers Directive (EmpCo), set to take effect on 27 September 2026, will prohibit the sale of products and packaging with non-compliant environmental claims, potentially requiring their withdrawal from the market.
HDE chief executive Stefan Genth said this measure would impact “countless products and packaging items across all product ranges that have already been manufactured and are currently in companies’ warehouses,” leading to substantial economic damage for the retail sector.
The EmpCo Directive aims to strengthen consumer protection by cracking down on greenwashing and misleading sustainability claims. It incorporates new rules on environmental advertising into German law under the Act against Unfair Competition (UWG).
While the EU’s Consumer Protection Cooperation (CPC) Network has issued guidelines recommending proportional enforcement to minimise unnecessary waste, the HDE argues that this does not provide adequate legal certainty for German retailers.
Genth pointed out that, in Germany, enforcement is carried out by private bodies such as trade and consumer associations, which are not bound by the CPC Network’s recommendations.
As a result, retailers risk legal challenges and cease-and-desist orders if they continue to sell non-compliant products after the directive’s deadline.
The HDE contends that the impending requirement to withdraw and destroy unsold goods and materials is at odds with the EU’s own sustainability and environmental objectives.
“This undermines the EU’s aims of improved environmental protection and its intended sustainability targets,” Genth said.
The federation is urging the European Commission to revise the directive, calling for “practical transitional” and sell-off periods to prevent a surge in waste and provide legal clarity for companies.
Without such provisions, the HDE warns that German retailers and suppliers may face significant financial losses, while large quantities of usable goods could be disposed of prematurely.
The federation maintains that only legislative amendments introducing clear transition and phase-out options will ensure both regulatory compliance and progress towards environmental goals.
Genth added: “This is the only way to ensure legal certainty for all market participants in Europe, rather than using arrangements that raise concerns about the rule of law to conceal past failings.”
