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CMA to examine if ‘eco-friendly’ claims are misleading

09/11/2020

The UK Competition and Markets Authority (CMA) will investigate descriptions and labels used to promote fashion and textile products and services claiming to be ‘eco-friendly’, and whether they could mislead consumers.

This move comes as awareness of environmental issues increases and a growing number of products and services are marketed as environmentally-friendly. The CMA is looking across a wide range of sectors, although it will focus on those industries where consumers appear most concerned about misleading claims and has highlighted textiles and fashion.

The CMA said it is concerned that this surge in demand for green products and services could incentivise some businesses to make misleading, vague or false claims about the sustainability or environmental impact of the things they sell.

  • Examples of misleading behaviour could include:
  • exaggerating the positive environmental impact of a product or service
  • using complex or jargon-heavy language
  • implying that items are eco-friendly through packaging and logos when this is not true

As part of its work, the CMA will also consider whether failing to provide all relevant information about the sustainability of a product or service – for example, whether it’s highly polluting or non-recyclable – could mislead consumers and therefore break consumer law.

The CMA wants to better understand the impact of green marketing on consumers, in line with the commitment made in its annual plan. The CMA is therefore calling on the public to have their say on what they expect from eco-friendly products, how often they come across green claims, and how these claims affect their purchasing decisions. The CMA is also consulting with charities, businesses and other organisations to get a clearer picture of the issues in this area.

Following these discussions, the CMA intends to publish guidance for businesses next summer to help them support the transition to a low carbon economy without misleading consumers. At this early stage, the CMA has not reached a view as to whether or not consumer protection law has been broken. However, if it finds evidence that businesses are misleading consumers, then it will take appropriate action.

Although UK marketing practices will be the focus of the CMA’s examination, the CMA is also taking a leading role in looking at green claims in a global context. Work will be carried out alongside the Dutch Authority for Consumers and Markets, as part of a project with ICPEN (the International Consumer Protection and Enforcement Network). From 9 to 20 November, the CMA will co-ordinate a ‘sweep’ of randomly selected websites with ICPEN members, with the aim of identifying the types of misleading green claims being made around the world.

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