CMA to get to the bottom of whether companies’ green claims are misleading customers. A broader investigation into the fashion sector will continue, as the CMA will also consider whether to put additional companies under the microscope. Using misleading ecological claims, we will not hesitate to take enforcement action, through the courts if necessary.”
The Competition and Markets Authority (CMA) will review the sustainability and environmental claims made by ASOS, Boohoo and George at Asda on their fashion products, including clothing, footwear and accessories. The move comes as part of its ongoing investigation into potential greenwashing and follows concerns about the way the companies’ products are marketed to customers as green.
In January this year, the CMA focused on the fashion sector, where consumers spend an estimated £54bn annually, and its initial review identified concerns about potentially misleading green claims. These included a number of companies that created the impression that their products were ‘sustainable’ or better for the environment, for example by making blanket claims about the use of recycled materials in new clothing, with little or no information on the basis those claims or exactly what products they related to.
Today, the CMA has launched investigations into ASOS, Boohoo and George to get to the bottom of their concerns. Among other things, these include whether:
statements and language used by companies are too broad and vague, and can give the impression that clothing collections such as ASOS ‘responsible editing’, Boohoo’s current ‘Ready for the Future’ range and ‘George for Good’: they are more environmentally sustainable than they really are. The criteria used by some of these companies to decide which products to include in these collections may be lower than what customers could reasonably expect from their descriptions and general presentation; for example, some products may contain as little as 20% Recycled Fabric Some items have been included in these collections when they do not meet the criteria Missing information to customers about products included in some of the companies’ eco-friendly ranges, such as missing information on the manufacture of the fabric. of any statement made by companies about fabric accreditation schemes and standards is potentially misleading, as is the lack of clarity as to whether accreditation applies to particular products or to the company’s broader practices
Sarah Cardell, Interim Executive Director of the CMA, said:
People who want to ‘buy green products’ should be able to do so with the certainty that they are not being duped. Green and sustainable products can play a role in the fight against climate change, but only if they are authentic.
We’ll examine the eco-friendly claims of ASOS, Boohoo and George at Asda to see if they stack up. If we find that these companies are using misleading green claims, we will not hesitate to take enforcement action, through the courts if necessary.
This is just the beginning of our work in this sector and all fashion companies should take note: look at your own practices and make sure they are in line with the law.
The CMA has written to all 3 companies outlining its concerns and will use its intelligence gathering powers to obtain evidence to further its investigation. The development of the review will depend on the evaluation made by the CMA of the evidence presented to it. Possible outcomes include getting commitments from the companies to change the way they operate, taking the companies to court, or closing the case without further action.
The move comes after the CMA published its Green Claims Code in September 2021. The code is intended to help companies understand how to communicate their green credentials, while avoiding the risk of misleading buyers.
The CMA’s broader investigation into misleading environmental claims is ongoing and other sectors will be reviewed in due course.
Notes to editors
ASOS sells fashion items through the ASOS.com website. George at Asda sells fashion items online at direct.asda.com/george and in store. Boohoo sells fashion items through various websites, including Boohoo.com, BoohooMan.com, DorothyPerkins.com, Oasisfashion.com, and PrettyLittleThing.com. The CMA is in the initial stage of its investigation. Accordingly, any business under investigation should not be presumed to have breached consumer protection law. The key piece of consumer protection legislation relevant to the CMA Green Claims Code and the application cases announced today is the Consumer Protection Against Unfair Trading Regulations 2008 (CPR). The CPRs contain a general prohibition against unfair business practices and specific prohibitions against deceptive actions and deceptive omissions. Examples and case studies can be found in the CMA Environmental Claims Code: Environmental Claims on Goods and Services. Read more about how the CMA is supporting low-carbon growth in its Annual Plan 2022/23. Media inquiries should be directed to [email protected] or 020 3738 6460. All inquiries from the general public should be directed to the CMA General Inquiries team at [email protected] or 020 3738 6000.
Source: www.gov.uk