UK’s CMA issues greenwashing guide for fashion sector

The UK’s Competition and markets Authority (CMA) has had various brands in its sights recently over greenwashing issues. And with sustainability an ever-more-important subject (potentially leading to more greenwashing from companies), the CMA has created a guide to help fashion companies avoid making unsupportable claims.

It has also warned multiple brands by letter that changes need to be made.

The launch of the compliance guide follows major action from the CMA that saw it getting commitments from ASOS, Boohoo and George at Asda about their sustainability claims and the body has now issued letters to 17 “well-known brands, advising them to review their practices”.

It said “these letters highlight areas of concern regarding their green claims, such as the use of broad or general terms and whether certain products are being wrongly included in ‘eco’ ranges”.

And the CMA used the letters to remind fashion brands that it “will soon have strengthened consumer powers under the Digital Markets, Competition and Consumers Act 2024. This will enable the CMA to fine businesses up to 10% of their worldwide turnover if they break consumer law, meaning businesses should take steps now to make sure their claims are accurate and do not mislead shoppers”.

The CMA said common concerns outlined in the letters include “the use of broad terms, such as ‘sustainable’, which are unclear and so more likely to mislead consumers; unclear or otherwise potentially misleading claims about a product’s composition; labelling products as ‘recycled’, thereby suggesting that the entire product is made of recycled materials when this does not appear to be the case; potentially misleading claims about affiliations; [and] grouping products into collections or ranges without clearly stating the criteria for including products”.

So, now to the practical new guide that “aims to drive compliance with consumer law and create a level playing field for all fashion businesses [plus] help to make sure shoppers looking to buy green can trust that the claims they see”.

The guide sets out practical tips on how fashion brands should, among other things: give clear, accurate, and complete information about their products; make sure the criteria used to decide which items are included in green collections are clearly set out and detail any minimum requirements – and that products are not labelled as part of a sustainable range unless they meet these criteria; be clear and specific when using filters or other navigational tools to search for green products; and be clear if the claim is based on only specific parts of a product’s life cycle”. It also includes illustrated examples.

The CMA’s big focus on fashion began in 2022 when it saw the number of ‘green’ claims being made by companies was on the rise, but it was concerned that some of these claims could mislead consumers.

With the aforementioned three major companies having made certain commitments, the guide hopes to make it easier for fashion firms to understand what is and isn’t acceptable even if they haven’t signed up to abide by any set of rules.

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.”