Greenwashing Firms, EU Pressure
European and Spanish Companies Accused of Greenwashing; EU Opens Case Against Spain for Inaction
Major European and Spanish companies are facing formal complaints for 'greenwashing' — using fake or exaggerated green claims in their advertising. The European Commission has also opened an infringement procedure against Spain for failing to update its national laws to match new EU anti-greenwashing rules, according to El Periódico.
A 2020 study by the European Commission found that 53% of green claims in the EU were vague, misleading, or unfounded. Now, regulators on both ends are pushing back hard — and companies face fines of at least 4% of their total annual revenue if found guilty.
Airlines and Energy Giants Named in Consumer Complaints
In May 2023, the European Consumer Organisation (BEUC) and 22 member groups from 17 countries filed a complaint against 17 airlines. Spanish consumer groups CECU and OCU joined the effort. The airlines — including Iberia and Vueling — stand accused of misleading customers through carbon 'offsetting' schemes that suggest flying green is possible, according to Levante-EMV.
A spokesperson for IAG, parent company of Iberia, said they 'strictly comply with current advertising regulations' and remain committed to net-zero by 2050. In a more unusual move, energy company Iberdrola sued rival Repsol in a Santander court in February 2024, accusing it of 'unfair competition' through greenwashing. Repsol CEO Josu Jon Imaz called the lawsuit 'legal harassment,' insisting the company's commitment to decarbonization is 'total and transparent.'
Spain Gets a Two-Month Warning From Brussels
On May 23, 2024, the European Commission formally opened an infringement procedure against Spain. The reason: Spain missed the deadline to update its General Law for the Defense of Consumers to match new EU rules on green claims, according to La Opinión de Murcia. Spain now has two months to respond to Brussels.
If Spain does not act, the Commission will issue a 'reasoned opinion.' After that, the case goes to the European Court of Justice, which can impose heavy daily fines on the country. Greenpeace Spain called the EU's move 'a necessary wake-up call,' saying the Spanish government has been 'traditionally lax' with national energy companies, according to Diario de Mallorca.
New EU Laws Set to Ban 'Climate Neutral' and 'Eco' Labels
Two new EU laws are reshaping what companies can say. The first, the Empowering Consumers for the Green Transition Directive, was adopted on February 20, 2024. It bans generic labels like 'eco,' 'green,' or 'climate neutral' unless backed by hard evidence. The second, the Green Claims Directive, approved on March 12, 2024, requires companies to get all green claims verified by independent auditors before using them in ads, according to El Periódico de Aragón.
Spanish Consumer Affairs Minister Pablo Bustinduy launched an investigation in June 2024 into companies in the airline, energy, and food sectors. He stated: 'We cannot allow companies to compete unfairly by using environmental masks that confuse the consumer. The law will be applied with maximum rigor,' according to La Opinión de Zamora.
Companies May Go Silent Rather Than Risk Greenwashing Fines
Legal analysts at Cuatrecasas warn that the Iberdrola vs. Repsol case marks a 'paradigm shift.' Greenwashing is no longer just a matter for consumer watchdogs — it is now a weapon in commercial litigation between rivals, raising the financial and reputational stakes far higher, according to El Correo Gallego.
A growing risk is what analysts call 'greenhushing.' Fearing fines of up to €1 billion or more for large multinationals, some companies are simply stopping all environmental reporting to avoid any chance of a greenwashing charge. Experts warn this could lead to less transparency, not more, according to La Nueva España.
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