Credit: iStock
New guidance from competition and consumer protection watchdog builds on findings from Asos, Boohoo, and George at Asda investigation
The Competition and Markets Authority (CMA) has published a new document to help fashion retailers avoid misleading green claims and minimise the risk of "greenwashing" when discussing their environmental credentials.
The guidance applies to all businesses which make green claims about clothing, footwear, fashion accessories and related services, such as packaging, delivery, and returns.
It reiterates how each business in a supply chain has a responsibility to ensure environmental claims about products, services, processes, brands or businesses are accurate and substantiated.
It specifies that this applies to any messaging on a product - including on labels - in advertising materials, in store or online. The guidance also covers content both on brand websites, apps or on social media.
Moreover, the CMA stresses how customers should not have to take further action, such as following a hyperlink, scanning a QR code or expanding a drop-down list, to access important environmental information, which must be displayed close to the location of the claim.
The document formalises findings from the competition watchdog's investigation into Asos, Boohoo, and George at Asda - which concluded in March with the trio formally pledging to root out misleading environmental claims about their clothes and the CMA issuing an open letter urging all fashion retail businesses to use the deals as a benchmark for how they manage their own green claims and marketing practices.
The firms, which collectively generate more than £4.4bn annually from UK fashion sales, pledged to regularly provide the CMA with reports on how they are complying with the agreements, and promised to avoid natural imagery, such as green leaves, logos or icons used in a way that suggests a product is more environmentally friendly than it is.
Moreover, the trio promised to avoid "ambiguous" terms like 'eco', 'responsible', and 'sustainable' to describe fabrics. More specific terms like 'organic' and 'recycled', should be displayed instead, substantiated with a detailed breakdown of the fibres contained in a fabric, the agreements added.
Asos, Boohoo, and George at Asda also promised to ensure any marketing to promote environmental targets is supported by a clear and verifiable strategy, and that statements about accreditation schemes and standards are clear and set out whether they apply to products or wider practices.
Firms within scope of the CMA's updated guidance will be required to follow suit.
Since September 2021, companies selling products or services into the UK have been required to comply with the CMA's Green Claims Code, which demands all environmental claims are truthful and accurate; clear and unambiguous; substantiated; and consider the full lifecycle of the product or service.
The CMA's update comes just days after the Changing Markets Foundation published a major new analysis accusing many leading fashion brands of "doubling down" on their use of polluting synthetic textiles made using fossil fuels.
The report found around half of the international clothing brands and retailers that responded to the non-profit's survey confirmed they had increased their use of fossil fuel-based fabrics, with just three reporting reduced use.
The Changing Markets report also accused several brands and retailers of having broken pledges to reduce the use of synthetic materials which they made in response to the last survey in 2022. Moreover, a growing number of companies simply refused to respond to its latest survey.
Keep up to date with all the latest green business news by signing up to the free Daily and Weekly BusinessGreen Newsletters.
