German manufacturers need to clarify any use of the ambiguous term "climate neutral" when advertising their products, a German court ruled on Thursday.
The case centres on an advert by liquorice and fruit gum manufacturer Katjes that used the disputed term to advertise in a trade journal.
The manufacturing process itself is not emission-free, but the company supports climate protection projects via an environmental consultant to compensate for this.
The Frankfurt office for the prevention of unfair competition had filed a lawsuit because it regarded the advert to be misleading. Key information, such as how climate neutrality is achieved, was withheld from the consumer, it argued.
The Federal Court of Justice (BGH) in Karlsruhe ruled in favour of the plaintiffs on Thursday and ordered Katjes to withdraw the advert.
Germany's highest civil court backed the plaintiff's demand that marketers should specify whether this means a reduction of CO2 emissions or offsetting measures, for example financial compensation.
According to the court, it was necessary to clarify the term in advertising because the reduction of CO2 emissions and the compensation of these emissions are not equivalent measures for achieving climate neutrality.