Poland - Sustainability claims and greenwashing
Developments in Poland concerning green claims and the associated risk of greenwashing
Environmental issues are increasingly being recognised in Poland as an important market factor that can determine the competitive advantage of companies. The more consumers declare that they are guided by environmental concerns in their choices, the more companies pretend to be environmentally friendly. Consequently, this increases the likelihood of fraud and misleading consumers and other business entities about the green credentials of products.
We have identified the 3 most important areas of development that should be considered by those who target consumers in Poland when making green claims, to avoid accusations of greenwashing.
1. The use of “green” labels
Polish regulation on organic farming and production imposes penalties for improper use of “bio” or “eco” labels, misleading consumers and falsely portraying products as organic. Under this regulation, any commercial entity that uses the designations reserved for organic products (such as “bio”, “eco”) in advertising or in commercial descriptions for a non-organic product faces a pecuniary penalty of up to 200% of the financial benefit received, or which the entity could have received for the products placed on the market, with a minimum fine of PLN 1,000. Similarly, unauthorised use of the EU organic production logo is punishable by a pecuniary penalty of up to 200% of the financial benefit that the entity has obtained or could obtain for the products placed on the market, with a minimum fine of PLN 500.
2. Self-regulation in advertising continues to develop – the Advertising Code of Ethics
The Advertising Council was established to create, promote and protect a set of principles which must be followed by entrepreneurs engaged in advertising activities in Poland and by Polish entrepreneurs advertising abroad.
The Advertising Code of Ethics (“the Code”) is the main code created by the Advertising Council and the Advertising Ethics Commission. It comprises a set of regulations, defining what is deemed acceptable and what is deemed unethical in advertising messages. The Code regulates all aspects of advertising communication and considers the specifics of different media forms. It also promotes responsible advertising practices and responds to the challenges posed by a dynamic market. The Code is regularly reviewed and updated.
In March 2023, the Advertising Council updated the Code. According to the proposed wording, environmental advertisements must, among other things:
- not violate public confidence in environmental efforts;
- not be inconsistent with the facts, immeasurable or impossible to verify;
- be clear, simple and understandable to the consumer;
- any reservations or conditions on which the veracity of the advertisement depends should be indicated in it;
- should relate to a specific product or activity of the advertiser;
- environmental benefits indicated in the advertisement must be related to the properties of the product, and when they occur periodically, the consumer should be informed about it;
- the general presentation of the product must not be misleading as to the existence of environmental benefits;
- include a clear justification for the consumer regarding, amongst other things, environmental impact;
- advertisements containing comparisons should compare one or more relevant, adequate, verifiable and representative features of these products and indicate the criteria for comparison.
3. Promotional and educational activities aim to tackle low consumer vigilance and encourage reporting of greenwashing
Throughout 2023, the Office of Competition and Consumer Protection will examine the seven largest companies in the e-commerce sector in Poland. These activities are conducted in order to determine whether entrepreneurs, in connection with conducting marketing activities referring to the issues of ecology, sustainable development or environmental protection, have committed a violation regarding practices that infringe collective consumer interests.
Moreover, consumers have the right to file complaints on greenwashing to the Advertising Ethics Commission based on the current content of the Code. The number of complaints increases year by year; in 2022, there were approximately 100 complaints regarding greenwashing. This shows that this topic is gaining in notoriety and will be further developed, in particular with regard to EU regulations that are being issued.
