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Regional Court of Mönchengladbach’s decision on company’s climate neutral claims regarding jams - judgment

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In December 2020, an anonymous party filed against an anonymous corporation for misleading advertisement. This case concerned an advertising on jams which included the statements ‘climate neutral product’ and ‘climate neutral value-for-money-classic’. While it was undisputed between the parties that the production process of the jams itself was not CO2 neutral, but that the defendant financially supported reforestation projects in South America, the plaintiff nevertheless considered the advertising statement as misleading. They argued that the target consumer group would understand the statement insofar as the production process itself was climate neutral and that the same applied to the readership of the newspaper where the advertisement was published. 

In February 2022, the Regional Court of Mönchengladbach held that an average end consumer would not understand the defendant’s claims to mean that the CO2 produced during the manufacturing process was offset by subsequent measures and that climate neutrality was achieved in balance. While it could be assumed that a normally informed consumer knew of the concept of climate neutrality through compensation, the average consumer would relate the statement to the specific product and the manufacturing process and not to offsetting. This was especially the case because in the situation of selling jam jars, the focus was on quick messages and quick decisions. The same applied to the advertising in the newspaper. Thus, the Court found the advertising statements to be misleading pursuant to § 5 para. 1 of the Act against Unfair Competition.


Regional Court of Mönchengladbach’s decision on company’s climate neutral claims regarding jams

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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

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

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

Activities that relate to the production of goods and services from forests.

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

Actions or measures to adapt terrestrial systems to climate change.

Geohazards are adverse geological phenomenon's that are capable of causing widespread damage or loss to property, life and the environment, such as earthquakes, volcano eruptions and tsunamis. Climate change can increase the frequency and severity of some geohazards, such as landslides, and soil erosion.

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

Regional Court of Mönchengladbach’s decision on company’s climate neutral claims regarding jams - judgment

Risk

Greenhouse gas

Economic sector

Adaptation/resilience

Finance