The UK’s Competition and Markets Authority (CMA) has released a compliance guide to help businesses ensure their practices align with the law and advised 17 prominent brands to reassess their green claims.
This guide, based on the CMA’s Green Claims Code, aims to promote compliance with consumer law and foster fair competition across the fashion industry. It ensures that shoppers can trust the environmental claims made by businesses when purchasing green products.
In addition to issuing the guide, the CMA has advised 17 well-known fashion brands to review their practices. These advisory letters point out concerns regarding their green claims, such as the use of vague terms and the potential misclassification of products in ‘eco’ collections.
The letters also remind fashion companies that the CMA will soon gain stronger enforcement powers under the Digital Markets, Competition and Consumers Act 2024. This law will allow the CMA to fine businesses up to 10% of their global revenue for violating consumer law, urging companies to verify their claims are accurate and not misleading.
The tailored guide offers practical advice for fashion brands, including providing clear, accurate, and complete information about their products, clearly outlining criteria for items included in green collections and ensuring products meet these standards before labeling them as sustainable, being specific when using filters or tools for green product searches, and clarifying whether claims relate to certain parts of a product’s life cycle.
The guide includes illustrated examples to make it easier for businesses to apply its recommendations to their green claims.
This guide follows the CMA’s 2022 investigation into the fashion industry, which revealed a rise in ‘green’ claims as companies aimed to meet growing consumer demand for sustainable options. The CMA was concerned that some of these claims might mislead customers.
As a result, the CMA launched investigations into ASOS, Boohoo, and George at Asda. In March 2024, these brands, which generate over £4 billion in UK fashion sales, agreed to change how they display, describe, and promote their green credentials. The companies signed undertakings to ensure only clear and accurate green claims were used, covering sustainable collections, imagery, product filters, environmental targets, and accreditation references.
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.”