The European Union has introduced a range of environmental legislation set to reshape the textile, fashion, and apparel industry. This article focuses on the Empowering Consumers Directive, exploring how Textile Exchange’s standards system is well-positioned to help companies make substantiated and credible claims in alignment with the directive.
What is the Empowering Consumers Directive?
The Empowering Consumers Directive (often abbreviated to ECD, but also to EmpCo or ECGT) is already in force. It expands the list of misleading commercial practices under the Unfair Commercial Practices Directive (UCPD), as well as banning unfair commercial practices, including generic environmental claims in the EU. The aim is to protect and empower consumers by providing them with accurate information so they can make informed choices.
Textile Exchange welcomes the ECD as we share the objective of empowering consumers with accurate, clear, and credible claims.
How the Textile Exchange’s standards system meets the ECD certification scheme requirements
Textile Exchange is actively aligning our standards system with the ECD, including through the adoption of the ISEAL Code of Good Practice for Sustainability Systems.
A comparative analysis by ISEAL between ECD and the ISEAL Code of Good Practice for Sustainability Systems concluded that “sustainability systems that apply the ISEAL Code of Good Practice, and that adopt third-party verification, are well positioned to support businesses in meeting the expectations of the Empowering Consumers Directive.”
Overview
Here is an overview of how Textile Exchange’s standards system meets the ECD’s definition of a certification scheme, outlined as conditions in the definition of “certification scheme” [Article 1 (b) (r) i-iv] of the ECD.
Requirement 1
[Article 1 (b) (r)]
Definition
““Certification scheme” means a third-party verification scheme that certifies that a product, process, or business complies with certain requirements, that allows for the use of a corresponding sustainability label, and the terms of which, including its requirements, are publicly available”.
How Textile Exchange’s standard system complies
Textile Exchange’s standard system includes publicly available criteria, policies, and procedures for certification and the use of sustainability labels. The conformity to the criteria is verified through certification services performed by independent third parties called certification bodies. Certification bodies also verify whether companies are eligible to use corresponding sustainability labels. For more information on certification bodies, please see Requirement 5 [Article 1 (b) (r) (iv)] below.
Requirement 2
[Article 1 (b) (r) (i)]
Definition
“The scheme is open under transparent, fair, and non-discriminatory terms to all traders willing and able to comply with the scheme’s requirements.”
How Textile Exchange’s standard system complies
Textile Exchange standards are open to any organization throughout the supply chain, from raw material producers to brands.
The standards are:
Raw material standards, including the Materials Matter Standard, Responsible Down Standard, Responsible Animal Fiber standards, Global Recycled Standard, Recycled Claim Standard, and Organic Content Standard.
The Content Claim Standard applies across the supply chain and functions as the chain of custody requirements used to track materials from the source to the final product.
Certified organizations and products can be publicly found using our search tool.
Requirement 3
[Article 1 (b) (r) (ii)]:
Definition
“The scheme’s requirements are developed by the scheme owner in consultation with relevant experts and stakeholders.”
How Textile Exchange’s standard system complies
All Textile Exchange standards are developed according to our Standard Setting Procedures. This includes approval by an International Working Group, which is a diverse, independent decision-making body composed of stakeholders relevant to the standard. It may include non-governmental organizations, brands, retailers, farmers, supply chain members, industry associations, and topical experts.
This approach ensures that Textile Exchange standards effectively achieve their intended goals and that the standard development process is inclusive, transparent, and accessible to all affected stakeholders.
Requirement 4
[Article 1 (b) (r) (iii)]
Definition
“The scheme sets out procedures for dealing with non-compliance with the scheme’s requirements and provides for the withdrawal or suspension of the use of the sustainability label by the trader in case of non-compliance with the scheme’s requirements.”
How Textile Exchange’s standard system complies
The Textile Exchange standards system has procedures for cases of non-compliance, or what is otherwise called non-conformance, with our standards and policy requirements. Textile Exchange, as the standard owner, does not carry out certification to our standards.
All certification decisions, including any non-conformances found in an audit, are decided by certification bodies. More specifically certification bodies approve claims, issue scope certificates, ensure non-conformities are corrected, and are responsible for suspensions or withdrawals of certification.
The timeline of remediation to non-conformances is set in our procedures, and in cases of claims, certification mark or label misuse, where the non-conformance timelines have not been respected, or the misuse instances are repeated, Textile Exchange reserves the right to take appropriate action in accordance with relevant normative requirements and/or any active licensing agreements.
To ensure integrity, there are also procedures for the withdrawal or suspension of certified organizations.
Requirement 5
[Article 1 (b) (r) (iv)]
Definition
“The monitoring of a trader’s compliance with the scheme’s requirements is subject to an objective procedure and is carried out by a third party whose competence and independence from both the scheme owner and the trader are based on international, Union, or national standards and procedures.”
How Textile Exchange’s standard system complies
Textile Exchange’s standards system has over 30 third-party certification bodies.
The certification bodies audit more than 100,000+ sites globally as well as being responsible for interpreting standard requirements and deciding whether an organization is conforming to criteria. They also issue scope and transaction certificates to verify a company or product and approve claims and labeling for certified organizations.
Certification bodies are accredited to internationally recognized standards (ISO 17065).
Accreditation bodies oversee certification body performance to ensure that they operate with integrity.
Textile Exchange also sets detailed requirements for certification bodies through documents, such as Accreditation and Certification Procedures (ASR-101).
How we continue to align with the ECD
Beyond meeting the definition of a certification scheme, Textile Exchange also supports companies in navigating the broader requirements of the ECD.
Our Standard Claims Policy (TE-301-V1.4) and the Materials Matter Claims and Labeling Policy (TE-MM-POL-301-V1.0) include recommendations when making specific credible claims. Throughout these policies, you’ll find “NOTE” sections highlighting the importance of considering applicable laws where your product may be sold, and where additional context may be required.
We also recognize that the ECD will be implemented differently across EU Member States. Textile Exchange is actively monitoring these national developments, and we will consider and implement any necessary policy adjustments as needed after the transposition deadline to ensure continued alignment.
Final thought
As the owner of a robust certification scheme that follows international standards and best practices, Textile Exchange is well-positioned to support companies committed to strong sustainability claims in line with the ECD.
Disclaimer: Please note that this information is provided for general informational purposes only and does not constitute legal advice or legislative interpretation. Participation in Textile Exchange’s certification system does not guarantee compliance with legislation. We encourage you to consult with legal counsel for any questions about compliance with applicable laws.
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