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Wettbewerbszentrale v. Katjes Fassin GmbH + Co. KG (“climate neutral”) - decision

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The Zentrale zur Bekämpfung unlauteren Wettbewerbs (Wettbewerbszentrale), a German nonprofit association for fair competition, brought a claim against confectionery manufacturer Katjes Fassin GmbH + Co. KG, challenging an advertisement published in the trade journal Lebensmittel Zeitung on February 19, 2021. 

The advertisement promoted Katjes fruit gummies with the words "[s]eit 2021 produziert Katjes alle Produkte klimaneutral" ("since 2021, Katjes produces all products climate-neutrally"). The promotion was accompanied by a "klimaneutral" ("climate neutral") label and a reference to the website of carbon offset provider ClimatePartner, accessible via URL and QR code. Plaintiffs alleged that this was misleading, as the production process itself was not CO₂-neutral; Katjes instead compensated its emissions by purchasing credits for climate protection projects through ClimatePartner.

The Landgericht Kleve dismissed the claim, finding the advertisement not misleading for the trade readership of the journal. On appeal, the Oberlandesgericht Düsseldorf upheld the dismissal, finding that the term "klimaneutral" was understood by consumers as referring to a balanced CO₂ accounting achievable through either reduction or compensation. The court explained that the reference to ClimatePartner's website provided sufficient clarification.

On June 27, 2024, the Federal Court of Justice (Bundesgerichtshof, BGH) reversed the decision. The BGH found the advertisement misleading under § 5 Abs. 1 of the Act against Unfair Competition (Gesetz gegen den unlauteren Wettbewerb, UWG). The BGH held that the term "klimaneutral" is inherently ambiguous: it can be understood either as actual CO₂ reduction in the production process or as mere compensation through offset credits. Because reduction and compensation are not equivalent measures — with reduction taking priority over compensation ("Grundsatz des Vorrangs der Reduktion gegenüber der Kompensation") — the ambiguity itself constitutes active misleading without adequate in-advertisement clarification. The court further held that, given the particularly high risk of misleading consumers in environmental advertising (analogous to health-related advertising), clarification must appear in the advertisement itself; a reference to an external website via QR code is insufficient. The BGH ordered Katjes to cease and desist from advertising in the challenged form. 

This is Germany's first ruling by the Federal Court of Justice on the permissibility of "climate-neutral" advertising claims and has since become the leading authority cited in all subsequent German greenwashing litigation.

Wettbewerbszentrale v. Katjes Fassin GmbH + Co. KG (“climate neutral”)

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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.

Tradable permits are market-based tools that grant permission for specific activities, frequently used to regulate emissions. These permits can be issued within a trading system to manage environmental impacts.

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

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

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

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

This sector involves activities to move goods and people, alongside the storage of products.

Extreme weather refers to events where a weather variable exceeds (or falls below) a threshold. Meaning it is significantly different from the average or usual weather pattern.

Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.

Wettbewerbszentrale v. Katjes Fassin GmbH + Co. KG (“climate neutral”) - decision

Policy instrument

Risk

Impacted group

Fossil fuel

Greenhouse gas

Economic sector

Finance