The Competition and Markets Authority (CMA) are undertaking work to understand better how consumer protection legislation can be used to tackle false or misleading environmental claims that affect consumers. These misleading claims are often referred to as 'greenwashing'.
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The fast-moving consumer goods category consists of essential items that people use on a daily basis, that are repurchased regularly, such as food and drink, cleaning products, toiletries, and personal care items. Last year, it was estimated that shoppers paid out more than Ł140 billion in total on FMCG products. This is a particular area of concern for the CMA with Chief Executive,
"Essentials like detergent, kitchen spray, and toiletries are the kinds of items you put in your supermarket basket every time you shop. More and more people are trying to do their bit to help protect the environment, but we're worried many are being misled by so-called 'green' products that aren't what they seem."
Red flags identified by the CMA
The CMA has stated concerns regarding certain products produced by
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certain statements and language used appear vague and broad, and may mislead shoppers regarding the environmental impact of those products.
- claims about some ingredients are presented in a way that may exaggerate how 'natural' the product is, and so may create an inaccurate or misleading impression.
- claims focusing on a single aspect of a product may suggest it is environmentally friendly as a whole.
- certain green claims - particularly in relation to recyclability - may be unclear, as they fail to specify whether they relate to all or part of a product, or packaging.
- use of colours and imagery - such as green leaves - may create the overall impression that some products are more environmentally friendly than they actually are.
- Are the claims supported by evidence?
- May the claims influence peoples' behaviour when purchasing such goods and services?
- Is the business misleading consumers by an absence of information about the environmental impact of products and services?
It is important to note that the CMA is at the initial stage of its investigation. Accordingly, it should not be assumed that
As reported by the Independent, a company spokesperson for
Next steps
The CMA has contacted
Under the Digital Markets, Competition and Consumer Bill, which is currently progressing through
General Comment
In a bid to capitalise on growing consumer appetite for environmentally friendly goods and services, companies are often tempted to emphasise their green credentials. However, in light of increased regulatory scrutiny, it is vital that businesses carefully consider any environmental claims against relevant guidance to ensure they avoid misleading customers, which could result in potential civil and criminal penalties, reputational damage and action from the
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How are claims about the environmental impact of products and services made?
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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