On April 30, 2025, the Hungarian competition authority, known as GVH, joined an international network of consumer protection agencies (ICPEN) in issuing an open letter to stakeholders in the fashion and textile industry. The letter aims to promote transparency in sustainability and green claims, thereby empowering consumers to make informed decisions.

The ICPEN, established in 1992 in London, serves as a platform for professional dialogue and cooperation among national competition authorities. The GVH is a member of this network and has actively participated in discussions regarding misleading environmental claims.

The open letter outlines several key principles for formulating and applying green claims, which are intended to enhance compliance and transparency. Although national regulatory frameworks may differ, the guidance focuses on principles applicable to businesses operating in all signatory countries. These principles include ensuring that claims are truthful, clear, and precise; providing adequate evidence to support claims; avoiding vague or overly general statements (e.g., “eco-friendly,” “green,” “sustainable”); and steering clear of unfounded or ambiguous claims about future efforts while emphasizing actions already taken or in progress.

The GVH has been addressing the topic of sustainability and green claims for several years, having published a green marketing guide in late 2020 that outlines considerations for businesses in their commercial communications related to sustainability. In early 2024, the GVH released a study summarizing the results of its market analysis on green claims, highlighting that many green advertising messages are often unclear, leading to consumer confusion regarding the meaning and content of various claims and labels.

To tackle this issue, the GVH has proposed the establishment of a multi-tiered, state-regulated labeling system related to sustainability and environmental impact. Additionally, the authority has made several recommendations for companies to ensure compliance with legal standards.

Further information on this topic will be discussed at the upcoming event of the Hungarian Compliance Academy (MCA) on May 27, which will focus on green claims and compliance.