Fashion industry probed by the CMA over ‘greenwashing’

The Competition and Markets Authority (CMA) has launched a probe into sustainability claims from the fashion industry amid ‘greenwashing’ concerns.

Last year, the CMA – a UK government regulatory body – announced it was cracking down on environmental and sustainability claims, warning that businesses had until the new year to ensure their claims complied with the law. In making the announcement, the CMA also released the Green Claims Code: an anti-greenwash guide for all brands making environmental claims.

Following a three-month grace period, fashion is the first sector to be singled out for further investigation and the CMA has warned that brands could face enforcement action if they are found to have breached consumer protection law. The fashion industry is understood to have been prioritised due to the size of the market and the scale of consumer concerns.

The CMA’s investigation will assess whether fashion brands claiming products are “sustainable” or “eco-friendly” have enough evidence to prove that is the case. It will also examine the use of specific claims, such as that clothes are organic or made from recycled materials.

CMA Director, Cecilia Parker Aranha, said: “Many shoppers are actively looking for brands which are doing good things for the environment. Now is the time for the fashion industry to take a fresh look at what they’re telling customers and make any changes needed to comply with the law“, adding “businesses that can’t back up their claims risk action from the CMA and damage to their reputation in the long-run.” 

If brands are found to be misleading consumers, the CMA can force companies to change their practices, and if they refuse, take them to court. Shoppers are also able to report any claims they suspect are misleading via the CMA’s website.

The crackdown on ‘greenwashing’ comes following a review by the CMA in 2020 that found up to 40% of environmental claims made by firms online could be misleading consumers. Whilst the fashion sector is being targeted first, other sectors, including beauty, food and drink are also expected to face investigation over their environmental claims.

Sam Caplen, Data Manager at Clarity Environmental, said he hopes that the CMA’s work will encourage businesses to fully consider their sustainability options for both products and packaging before making decisions: “In the rush to respond to consumers concerns over sustainability, without appropriate data businesses across many sectors can make poor and ill-informed decisions that are not only worse for the environment, but also pose a huge reputation risk. Packaging is a key area where positive impact can be made. We hope the CMA’s work will encourage businesses to take a reasoned and considered approach to sustainability improvements across their products and the packaging that surrounds them.”

He added: “With the online fashion industry growing at a significant rate, packaging is going to be a key area to review. The good news is there are more options than ever before for businesses to ensure that their products and product packaging are sustainable, but it is vital that businesses get to grips with their current exposure and consider the environmental impact of alternatives before taking further steps. With the right data, and the right support, we can get the best outcomes for the environment and business.”