In 2021, Katjes, a fruit gum manufacturer, claimed that all products were created in a climate-neutral manner. The advertisement claimed that the company offset its emissions through projects with the company ClimatePartner. 

The Central Office for Combating Unfair Competition (Competition Association) challenged this advertisement as misleading because consumers would assume that the fruit gums were produced without any emissions, rather than through offsets. The case was considered by two lower civil courts, which sided with Katjes on the premise that consumers can be expected to understand the term "climate neutral."

On July 5, 2024, the German Federal Court of Justice (BGH) overruled the lower courts for the following reasons:
1. Advertising a product as climate neutral can always be significant in the purchasing decision of customers
2. Environmental claims made in advertising have an increased risk in misleading customers due to the high personal value that the environment has for consumers
3. When making environmental claims, companies need to clarify the content of terms indicated green features of a product within the advertisement itself
4. Reduction and compensation of emission are two possible ways of achieving "climate neutrality" but are not equally valid.
5. The ambiguous term "climate neutral" may only be used if the company explains how the neutrality is achieved. Explanations must include specific details of the measures as well as any offsetting measures the company intends to take.
6. Requiring the consumer to visit separate websites for these explanations is not sufficient. If the required explanation is not contained directly in the advertisement, the term "climate neutral" is deceptive and incorrect. 


Zentrale zur Bekämpfung unlauteren Wettbewerbs v. Katjes

<p>This entry was provided by the Sabin Center for Climate Change Law. Please see the terms of use for citation and licensing of third party data.</p>

Zentrale zur Bekämpfung unlauteren Wettbewerbs v. Katjes - press release

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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.

Justice is the ethical and political framework that addresses fairness, including issues of responsibility, rights, and structural inequity.

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

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.

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.

A target to reduce the prevalence of a greenhouse gas over a specific time frame

A commitment to balance GHG emissions with removal by a certain point in time, effectively reducing the net emissions to zero

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.

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

Replacing technologies that burn fossil fuels directly with alternatives powered by electricity.

Actions to reduce emissions in energy generation and supply.

Social inclusion is the process of improving the terms on which individuals and groups take part in society—improving the ability, opportunity, and dignity of those disadvantaged on the basis of their identity.

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.

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.

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

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

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

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

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

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

Zentrale zur Bekämpfung unlauteren Wettbewerbs v. Katjes - press release

Target

Policy instrument

Just transition

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance