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Brands placed on notice over ‘greenwashing’ claims says watchdog

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22.09.2021

Businesses that make false or misleading claims about their green credentials have until the end of the year to clean up their act or face an investigation by the competition watchdog.

The Competition and Markets Authority (CMA) has published a Green Claims Code and warned it is launching a sweeping review of misleading green claims – online and offline, such as those made in-store or on packaging – at the start of 2022.

The move follows CMA research earlier this year that found 40% of green claims made online could be misleading. In recent years, companies including Ryanair, BMW and Shell have been called out by the Advertising Standards Authority.

The CMA will prioritise which sectors to review over the next few months. It said it would focus on industries where consumers are most concerned about greenwashing – such as textiles and fashion, travel and transport, and FMCG (with food and beverages, beauty........

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