The Competition and Markets Authority (CMA) announced yesterday that it will look into the accuracy of ‘green’ claims made by FMCG brands to ensure shoppers are not being misled.
The move is an expansion of ongoing work by the competition regulator into so-called ‘greenwashing’, which seeks to get to the bottom of whether products and services that claim to be green or eco-friendly are being marketed to shoppers accurately.
The CMA’s review will examine a wide range of FMCG products such as food and drink, cleaning products, toiletries, and personal care items. It will analyse environmental claims made about such products – both online and in store – to consider whether companies are complying with UK consumer protection law.
It noted that concerning practices could include the use of vague and broad eco-statements. For example, packaging or marketing a product as ‘sustainable’ or ‘better for the environment’ with no evidence; misleading claims about the use of recycled or natural materials in a product and how recyclable it is; and entire ranges being incorrectly branded as ‘sustainable’.
Sarah Cardell, Chief Executive of the CMA, commented: “These products are the essentials on everyone’s shopping lists: food and drink, shampoo, laundry detergent, toothpaste, cleaning products. As more people than ever try to do their bit to help protect the environment, we’re concerned many shoppers are being misled and potentially even paying a premium for products that aren’t what they seem, especially at a time when the cost of living continues to rise.
“Our work to date has shown there could be greenwashing going on in this sector, and we’ll be scrutinising companies big and small to see whether their environmental claims stack up. Now is a good time for businesses to review their practices and make sure they’re operating within the law.”
The CMA stated that how the review develops will depend on its assessment of the evidence before it. If it uncovers evidence suggesting green claims could be unfounded, the CMA said it will consider taking enforcement action using its formal powers – for example, opening an investigation into specific companies.
NAM Implications:
- Branding was introduced to build consumer trust in products.
- To have that trust questioned on any basis is a serious issue…
- …and involving the Government even more so.
- At the very least, a distraction from the day-job…
- And likely more to come.
- When will they ever learn?
