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Slovenia - Sustainability claims and greenwashing

What are the top three developments in Slovenia concerning green claims and the associated risk of greenwashing?

Although greenwashing is certainly present in the Slovenian market, there is currently no specific legislation dedicated to this problem. The Slovenian government is mostly focused on complying with EU standards regarding renewable energy, air and soil pollution, amongst others, and has shown little initiative so far in tackling the issue of greenwashing. This does not, however, mean that greenwashing is permitted in Slovenia and that the relevant authorities do not have any means to punish such advertising. On the contrary, those who operate or wish to operate in the Slovenian market should be especially mindful of certain key developments when making green claims. We explore some of the current key trends below.

1. Greenwashing falls under remit of general consumer protection laws, but case law guidance is currently limited

The European Commission’s Initiative on Substantiating Green Claims defines greenwashing as “companies giving a false impression of their environmental impact or benefits”.

With this definition in mind, companies making green claims in Slovenia should be careful not to fall under the general prohibition of unfair commercial practices used by companies to target consumers. This prohibition is included in the Consumer Protection Act (Zakon o varstvu potrošnikov – "ZVPot") and the Consumer Protection against Unfair Commercial Practices Act (Zakon o varstvu potrošnikov pred nepoštenimi poslovnimi praksami – “ZVPNPP), both of which are based on their respective EU directives, but do not mention greenwashing specifically. They do, however, ban any form of advertising that could mislead a consumer as to the nature of a product and its properties, and which causes the consumer to make a decision they would not otherwise have made. This means that, at least theoretically, a company making false green claims could be prosecuted by the Slovenian courts or by the Market Inspectorate of the Republic of Slovenia.

More concrete guidance is currently difficult to provide due to the low number of decided cases on this topic.

2. Slovenian Advertising Code seeks to tackle greenwashing by promoting lawful, decent, fair and truthful advertising 

In addition to the above regulations, the Slovenian Advertising Code (Slovenski oglaševalski kodeks – “SOK”), issued by the Slovenian Advertisement Chamber, aims to ensure lawful, decent, fair and truthful advertising with an emphasis on advertising being responsible to consumers. This code is generally binding on anyone involved in advertising on the Slovenian market and Article 17 is dedicated to advertising involving green and environmentally friendly claims.

SOK requires that advertising which focuses on environmental claims must not exploit consumers’ concern for the environment or their lack of knowledge on the subject, adding that such advertising must refer to a specific product or activity and not to the company or industry as a whole.

The following paragraphs contain instructions on how environmental claims within advertising should be made. Firstly, companies which make environmental claims in their advertising must be able to prove those claims, and the claims must contain all the relevant information without any omissions. Secondly, companies must disclose if any of their claims are disputed, and companies are banned from making environmentally friendly claims about products that have never been harmful to the environment in the first place. In its final paragraphs, the Article pushes for the fair use of scientific terms in advertising, stating that such terms should have a clear and understandable meaning. Finally, the Code refers to the Code of Advertising and Marketing Practices, adopted by the International Chamber of Commerce, for a broader explanation of the most commonly used environmental claims.

The competent authority for reviewing questions under the SOK is the Court of Arbitration at the Slovenian Advertisement Chamber, though it may only publicly ask the advertiser and/or media outlet to correct or withdraw the advertisement in question and is unable to impose further sanctions. However, the Court of Arbitration may file an initiative or report to the Market Inspectorate of the Republic of Slovenia and, in cases where the advertising has the characteristics of a criminal offence, may also file a complaint with the competent authorities.

3. Regulation 2020/852 of the European Parliament and Council dated 18 June 2020 concerning ‘greenwashing’ in the financial sector is adopted into Slovenian law.

The third important development concerning greenwashing is the adoption into Slovenian law of Regulation 2020/852 of the European Parliament and Council dated 18 June 2020. The Regulation is binding on Slovenian courts and aims to provide a united taxonomy at EU level that would help remove barriers to the functioning of the internal market as regards determining whether an economic activity qualifies as environmentally sustainable. Importantly, the Regulation mentions greenwashing specifically in relation to financial products, stating that “requirements for marketing financial products or corporate bonds as environmentally sustainable investments […]aim to enhance investor confidence and awareness of the environmental impact of those financial products or corporate bonds, to create visibility and to address concerns about ‘greenwashing’”. While the EU, and subsequently its Member States (including Slovenia), has shown concern regarding greenwashing in the financial products market, this can be seen as a step towards a more general awareness about the potential problems greenwashing brings.

Key contacts

Robert Kordić
Associate
Ljubljana
T +386 1 438 4666
Tjaša Pirnat
Associate
Ljubljana
T +386 1 438 4668

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