Greenwash or truth?

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

This investigation is a response to the growing number of products and services being marketed as environmentally friendly. Based on its own research and evidence from other enforcers, the CMA 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 is considering many sectors, although it is likely to focus on textiles and fashion, travel and transport, and fast-moving consumer goods (food and beverages, beauty products and cleaning products).

The consultation will seek information from consumers, 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.

In addition, 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.