Tuesday 21 September 2021

CMA publishes new law to crack down on greenwashing

To crack down on greenwashing, the Competition and Markets Authority (CMA) has published a new Green Claims Code to make sure businesses comply with the law.

The CMA has warned that businesses will have until the New Year to ensure their environmental claims are legally justified and stated that any firms making green claims “must not omit or hide important information and consider the full life cycle of the product”.

From the start of next year, the CMA will carry out full reviews of misleading green claims with the focus being on prioritised sectors where the consumer seems most concerned.

These include textiles and fashion, transport, food and beverages, beauty and cleaning products.

The decision follows its research last year, finding that 40% of green claims made online are misleading.

Andrea Coscelli, Chief Executive of the CMA, said: “More people than ever are considering the environmental impact of a product before parting with their hard-earned money.

“We’re concerned that too many businesses are falsely taking credit for being green, while genuinely eco-friendly firms do not get the recognition they deserve.

“The Green Claims Code has been written for all businesses – from fashion giants and supermarket chains to local shops.

“Any business that fails to comply with the law risks damaging its reputation with customers and could face action from the CMA.”