The UK’s competition regulator is to investigate whether Unilever has overstated how “green” some of its products are as part of a wider probe into environmental claims in the consumer goods sector.
The Competition and Markets Authority (CMA) has been examining so-called “greenwashing” for several years and in January expanded its work to include the FMCG sector.
The regulator said its initial review uncovered a range of concerning practices, and, as part of that work, it was today launching a formal investigation into Unilever.
The CMA stated that it had concerns around how Unilever is marketing some of its cleaning and toiletries products, suggesting that the consumer goods giant may be overstating how green certain brands are through the use of vague and broad claims, unclear statements around recyclability, and ‘natural’ looking images and logos.
Sarah Cardell, Chief Executive of the CMA, commented: “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.
“So far, the evidence we’ve seen has raised concerns about how Unilever presents certain products as environmentally friendly. We’ll be drilling down into these claims to see if they measure up. If we find they’re greenwashing, we’ll take action to make sure shoppers are protected.”
The regulator said it has contacted Unilever and will set out its concerns in writing later today. Following this, the CMA will use its powers to obtain further evidence to progress its investigation. It noted that possible outcomes include securing undertakings from Unilever that commit the company to change the way it operates, taking the company to court, or closing the case without further action.
Unilever has faced criticism in recent times for placing too much focus on brand “purpose” and sustainability. The group’s new Chief Executive, Hein Schumacher, has already acknowledged that corporate purpose could be an “unwelcome distraction” for some brands.
Commenting on today’s announcement by the CMA, a spokesperson for Unilever said the company was “surprised and disappointed” with the regulator’s “misleading” claims.
“Unilever is committed to making responsible claims about the benefits of our products on our packs and to these being transparent and clear, and we have robust processes in place to make sure any claims can be substantiated,” they said, adding that Unilever would continue to co-operate with the CMA.
NAM Implications:
- Unilever doesn’t need the potential disruption that can be caused by a greenwashing investigation.
- Still less do they need the potential damage to brand credibility…
- (While consumers are still concerned about climate change).
