29 January 2021

Global sweep finds 40% of firms’ green claims could be misleading

A global review coordinated by the UK Competition and Markets Authority (CMA) has so far found that 40% of 'green' claims made online could be misleading customers.

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© K8/unsplash

The International Consumer Protection Enforcement Network (ICPEN) hosts an annual sweep of websites to target fraudulent, deceptive or unfair conduct online. The UK's CMA and The Netherlands Authority for Consumers and Markets led the latest sweep, focusing on misleading environmental claims for the first time.

This comes as the CMA’s own investigation into misleading environmental claims is ongoing, to better understand the impact of green marketing on consumers.

4 in 10 of the 500 websites reviewed appeared to be using tactics that could be considered misleading and therefore potentially break consumer law. These included:

  • Vague claims and unclear language including terms such as ‘eco’ or ‘sustainable’ or reference to ‘natural products’ without adequate explanation or evidence of the claims.

  • Own-brand eco logos and labels not associated with an accredited organisation.

  • Hiding or omitting certain information, such as a product’s pollution levels, to appear more eco-friendly.

The CMA will publish guidance for UK businesses later this year to help them support the transition to a low-carbon economy while ensuring that consumers get the information they need.

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Greenwash or truth?