CMA issues a review on greenwashing
October 2, 2024
The Competition and Market Authority (CMA) has issued a new compliance guide, pushing fashion brands to review their green claims.
Alongside the release of the compliance guidelines, CMA has also advised 17 high-profile brands to review their specific claims and has secured commitments from ASOS, Boohoo, and George at Asda.
Based on the CMA’s Green Claims Code, the latest practical code aims to drive compliance with consumer law and create an even playing field for all fashion businesses, ensuring transparency for those looking to purchase sustainably.
Areas of concern that originally sparked the new guidelines included the false positioning of products in “eco” ranges.
Additionally, the letters reminded fashion brands that the CMA will soon have strengthened consumer powers under the Digital Markets, Competition and Consumers Act 2024. This will enable CMA the right to fine companies 10% of their worldwide turnover if they break consumer law.
Hayley Fletcher, interim senior director of consumer protection, said: “This hands-on guide will allow fashion retailers to really get to grips with their obligations under consumer law – and also means there’s no excuse for using misleading green claims,
“We’ve cautioned a number of well-known brands to take a close look at their practices, consider this guide, and make sure they’re not overstepping the mark when they promote their green credentials.
“All fashion companies – from designer labels to budget-friendly brands or independent boutiques – must be transparent and honest with their customers or risk enforcement action,” she said.
The guide aims to contribute to a more accurate labelling of green products in the fashion industry, protecting consumers from greenwashed advertising and inaccuracies.
Last Updated: 2 October 2024