The Hungarian competition authority has announced that Nestlé will enhance the transparency of its product labeling and commercial communication as a result of a joint European initiative led by the Swedish Consumer Authority and the Hungarian Competition Authority (GVH).

This initiative was prompted by a complaint from the European Consumer Organisation (BEUC) regarding unclear recycling claims on plastic bottles. The coordinated action aimed to scrutinize 'green claims' made by companies, leading to significant changes in labeling practices by both Nestlé Waters and The Coca-Cola Company.

Nestlé has committed to specific changes, including clearly stating that claims about recycled content do not apply to the label and cap, avoiding messages that imply a closed-loop recycling process, and ensuring that their labels do not mislead consumers about the environmental benefits of their packaging.

The company has pledged to implement these changes within 18 months for products sold in the European Economic Area and to reflect these commitments in its marketing campaigns within three months. National authorities, including the Swedish and Hungarian authorities, will monitor compliance with these commitments.

The GVH has been actively addressing 'green claims' for years and published a market analysis in January 2024, highlighting the confusion surrounding green advertising messages and the lack of consumer understanding regarding the meaning of various claims and labels. The authority has also provided recommendations for lawmakers, businesses, and enforcers, and previously summarized guidance for companies in its green marketing guide.