Britain’s competition watchdog is putting more fashion companies on alert for potential greenwashing.
After securing formal agreements from Asos, Boohoo and George at Asda to use only “accurate and clear” sustainability claims in March, the Competition and Markets Authority (CMA) has written to 17 “well-known” fashion brands to review their marketing practices, including the use of vague or overly broad terms such as “sustainable,” labeling products as “recycled” when only certain elements can be described as such, and grouping products into “eco” ranges without specifying the criteria for their inclusion.
More from Sourcing Journal
The move dovetails with the publication of a “green claims in fashion” guide to help brands adhere to the U.K.’s Green Claims Code when making environmental declarations. It also comes at a time when legislators are increasingly cracking down on fuzzy or inaccurate claims that could mislead consumers into thinking a product is more virtuous than it actually is. The European Union, for instance, is poised to ban nebulous language such as “environmentally friendly,” “natural,” “biodegradable,” “eco” and “climate neutral” unless they’re accompanied by substantive evidence that demonstrates them to be true. Already firms such as H&M have nixed eco-collection designations like “Conscious Choice” because of finger-wagging from Dutch and Norwegian regulators.
The CMA’s guide draws from the conclusions of its investigation into the Asos, Boohoo and George at Asda, which began in 2022 as part of a broader look at the increasing number of environmental marketing claims emerging in the apparel and footwear retail space.
The watchdog group said that it was concerned that the assertions made by the businesses were too ambiguous and that the criteria they used to decide which items to feature in curated ranges such as Asos’s “Responsible” edit, Boohoo’s “Ready for the Future” and Asda’s “George for Good” might be lower than consumers could “reasonably” expect from their descriptions and presentation. Other pitfalls, the CMA said, included missing information about what a certain fabric was made from, the inclusion of products in collections when they don’t meet criteria, and a lack of clarity about whether statements about fabric accreditation schemes and standards referred to particular products or their manufacturers’ overall practices.
“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,” Hayley Fletcher, the CMA’s interim senior director of consumer protection, said in a statement.
The letters the CMA sent, it said, set out to “remind” the 17 unnamed brands that it will soon have augmented authority under the 2024 Digital Markets, Competition and Consumers Act to fine businesses up to 10 percent of their global turnover if they fall afoul of consumer law.
“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,” Fletcher said. “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.”