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Higher Regional Court of Koblenz’s decision on company’s climate neutral claims regarding grave lights - judgment

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On December 2009, the Centre for Protection against Unfair Competition filed a suit against a corporation for misleading advertisement. The defendant, who sold grave lights, had advertised these on product labels and in a catalogue as ‘climate neutral’ and ‘CO2 neutral’. The Centre for Protection against Unfair Competition filed a claim in the Regional Court of Koblenz arguing that the advertising claims were misleading.

On January 2011, the Regional Court of Koblenz concluded that the advertising claims ‘CO2 neutral’ and ‘climate neutral’ were misleading and breached § 5 para. 1 of the Act against Unfair Competition. The Court held that consumers understood this advertising in the sense of the grave lights not having a negative impact on the CO2-content of the atmosphere. 

The defendant appealed this decision and stated that consumers understood the advertising claims ‘CO2 neutral’ and ‘climate neutral’ as meeting the technical requirements of these terms. The defendant argued that, in any case, they were taking measures to compensate the CO2 emissions by planting trees. 

On August 2011, the Higher Regional Court of Koblenz upheld the Regional Court’s ruling. In doing so, it relied on the strict standard established by the German Federal Court of Justice on environment-related advertising claims. The Higher Regional Court insisted that climate neutrality meant complete compensation of CO2 emissions. It found that the compensation measures such as planting trees had not sufficed to achieve complete compensation, in fact, the CO2 footprint had not even been calculated. The appeal was therefore upheld under § 5 para. 1 of the Act against Unfair Competition.

Higher Regional Court of Koblenz’s decision on company’s climate neutral claims regarding grave lights

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

This sector involves the wholesale and retail selling of goods.

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

Activities that provide lodging, food, and entertainment services to guests, including hotels, restaurants, and resorts.

This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

A ban is a legal action that prevents the sale or supply of a product or service, or that recalls a product from the market. Examples are bans on SF6, greenwashing, fossil fuel advertisement or single-use plastics.

The activities of industries that transforms raw materials into finished goods through industrial processes.

Higher Regional Court of Koblenz’s decision on company’s climate neutral claims regarding grave lights - judgment

Policy instrument

Fossil fuel

Greenhouse gas

Economic sector

Finance