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Publication 20 Aug 2024 · International

Germany: New Court Decision on 'Net-zero' claim used by cruise company

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August 2024

Again, a new court decision on an environment-related claim in Germany has been handed down. The Hamburg Regional Court has recently ruled that advertising with the statement "2050 Decarbonized Cruise Operations (Net-zero)" by a cruise company can mislead consumers (LG Hamburg, judgment of 9 August 2024, ref. no. 315 O 9/24). The terms "decarbonized" and "net-zero" would not clear to the average consumer and could be interpreted in two ways – either as complete avoidance of CO2 emissions or as a balanced result achieved through compensation measures.

The court found the fact that the advertiser’s action plan does not clarify that the advertised use of LNG (for dual-use ships) from 2050 onwards would actually come from renewable energy sources would be particularly capable of misleading the consumer. The fact that the cruise company would use E-LNG is not recognizable to the consumer. Additionally, there are no clear indications in the advertisement that compensation measures might still be necessary from 2050 onwards, which creates the false impression that such measures would no longer be needed, and the ships would be entirely emission-free .

These ambiguities could lead consumers to make decisions that they might not have made if they were fully informed. Furthermore, the court emphasized that special diligence is required in environmental advertising to avoid misleading consumers. This diligence particularly involves ensuring the clarity and precision of the terms used to prevent any confusion. The judgment is not yet legally binding.

For more information on sustainability claims and greenwashing in Germany please see here.

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