UK CMA Probes 'Green' Claims by ASOS, Boohoo, Asda

Published on: 01 August 2022
by KnowESG
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The UK Competition and Markets Authority (CMA) will scrutinise eco-friendly and sustainability claims by ASOS, Boohoo, and George at Asda about their clothing, footwear, and accessories. The move comes as part of CMA’s ongoing investigation into potential greenwashing and follows concerns around the way the firms’ products are being marketed to customers as eco-friendly.

In January this year, the CMA turned its eye to the fashion sector, where an estimated £54 billion is spent by consumers annually, and its initial review identified concerns around potentially misleading green claims.

These included several companies creating the impression that their products were ‘sustainable’ or better for the environment, with little to no information about the basis for those claims or exactly which products they related to.

CMA will probe the statements and language used by the businesses, the criteria used by some of these businesses to decide which products to include in these collections, items included in these collections that do not meet the criteria, lack of information provided to customers about products included in the eco ranges and any misleading statements made by the companies about fabric accreditation schemes and standards, according to a UK government press release.

CMA has written to the three firms outlining its concerns. Possible outcomes of the probe include securing undertakings from the companies to change the way they operate, taking the firms to court, or closing the case without further action, the release said.

The move comes after the CMA published its Green Claims Code in September 2021. The code aims to help businesses understand how to communicate their green credentials while avoiding the risk of misleading shoppers.


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