UK CMA Issues Compliance Guide to Tackle Greenwashing in Fashion

SG 149/24

The UK’s Competition and Markets Authority (CMA) has released a new compliance guide designed to assist fashion brands and retailers in aligning with the Green Claims Code when promoting the environmental benefits of their products.

Published on September 18, 2024, this guide is part of the CMA’s ongoing efforts to tackle greenwashing – misleading or exaggerated claims about sustainability practices. It provides practical recommendations and examples to help each business navigate consumer protection laws related to environment claims. 

The guide provides actionable advice for compliance with the code and underlying consumer protection laws, ensuring consumers are not misled and fostering a level playing field of fair practices in the fashion sector. The guidance is relevant to all companies making environmental claims about clothing, footwear, fashion accessories and related services, such as packaging, delivery and returns. 

The guide is based on findings from the CMA’s recent consumer protection investigations into fashion retailers that made formal commitments to improve their environmental impact. The CMA identified that some claims were vague, lacked proper substantiation, or had the potential to mislead consumers.

The CMA’s new guide outlines key practices for fashion brands, highlighting the importance of transparency when featuring items in eco-friendly collections and providing clear criteria for those collections. It recommends that brands modify filters to assist customers in searching for green products and specify whether environmental claims apply only to certain aspects of a product's lifecycle. Additionally, the guidance reiterates and expands on the six main principles of the Green Claims Code, particularly emphasizing the need to avoid unclear terms that may mislead consumers. All environmental claims must be evidence-based and can be substantiated. Retailers should ensure customers can easily understand the benefits claimed. Transparency is essential and hiding or omitting important information is not acceptable, plus comparison claims should be fair and relevant. Finally, claims should consider the entire product life cycle and be backed by solid evidence.

The CMA will soon have strengthened consumer protection powers under the Digital Markets, Competition and Consumers Act 2024. With this change, the CMA can fine businesses up to 10% of their worldwide sales if they break the new consumer law, giving more incentive to retailers to make sure their green claims are accurate, properly substantiated and not misleading to shoppers. This will come into effect in April 2025, making it an important deadline that fashion brands should work towards.

Reference:

• Greenwashing: CMA issues tailored guide for fashion brands
• Green Claims Code

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