CMA issues compliance guide to help businesses stay on the right side of the law – and advises 17 high-profile brands to review their green claims
Compliance guide follows extensive action from the CMA, including securing commitments from ASOS, Boohoo and George at Asda
Content includes practical examples to help fashion retailers stay on the right side of the law
CMA issues letters to 17 well-known brands, advising them to review their practices
This practical guide – which is based on the CMA’s Green Claims Code – aims to drive compliance with consumer law and create a level playing field for all fashion businesses. In doing so, it will help to make sure shoppers looking to buy green can trust that the claims they see.
As well as issuing a guide, the CMA has advised 17 well-known fashion brands to review their business practices. These letters highlight areas of concern regarding their green claims, such as the use of broad or general terms and whether certain products are being wrongly included in ‘eco’ ranges.
The letters also remind fashion brands that the CMA will soon have strengthened consumer powers under the Digital Markets, Competition and Consumers Act 2024. This will enable the CMA to fine businesses up to 10% of their worldwide turnover if they break consumer law, meaning businesses should take steps now to make sure their claims are accurate and do not mislead shoppers.
Fashion Tips: Don’t Make a Green Claim Faux Pas
The tailored guide sets out practical tips on how fashion brands should, amongst other things:
give clear, accurate, and complete information about their products
make sure the criteria used to decide which items are included in green collections are clearly set out and detail any minimum requirements – and that products are not labelled as part of a sustainable range unless they meet these criteria
be clear and specific when using filters or other navigational tools to search for green products
be clear if the claim is based on only specific parts of a product’s life cycle
It also includes a number of illustrated examples to bring the content to life, making it easier for businesses to apply the guide to their own claims.
Fashion fix: CMA Action to Date
The publication comes after the CMA launched a deep dive into the fashion industry in 2022. This revealed that the number of ‘green’ claims being made by companies was on the rise, as they sought to meet increasing demand for environmentally sustainable options. The CMA was concerned that some of these claims could mislead consumers.
The CMA’s deep-dive led to investigations into the practices of ASOS, Boohoo, and George at Asda, with the CMA securing landmark changes in March 2024 from the brands – which together make over £4 billion annually from UK fashion sales – to change the way they display, describe, and promote their green credentials.
Signing up to an agreed set of rules, the 3 firms signed undertakings committing them to use only accurate and clear green claims – including in their sustainable ranges, use of imagery, product filters, environmental targets, and how they refer to accreditation schemes.
Today’s guide provides all fashion brands with a clear steer around what they can and can’t do when it comes to making green claims about their fashion products.
Hayley Fletcher, Interim Senior Director of Consumer Protection, said:
This hands-on guide will allow fashion retailers to really get to grips with their obligations under consumer law – and also means there’s no excuse for using misleading green claims. We’ve cautioned a number of well-known brands to take a close look at their practices, consider this guide, and make sure they’re not overstepping the mark when they promote their green credentials. All fashion companies – from designer labels to budget-friendly brands or independent boutiques – must be transparent and honest with their customers or risk enforcement action.
For more information, visit the Misleading environmental claims collection page.
Notes to Editors
1 . Media enquiries should be directed to press@cma.gov.uk or 020 3738 6460.
2 . The CMA has not launched enforcement action against the 17 firms to which it has written and, in this instance, will not be naming them at this time.
3 . Common concerns outlined in the letters include:
the use of broad terms, such as ‘sustainable’, which are unclear and so more likely to mislead consumers
unclear or otherwise potentially misleading claims about a product’s composition
labelling products as ‘recycled’, thereby suggesting that the entire product is made of recycled materials when this does not appear to be the case
potentially misleading claims about affiliations
grouping products into collections or ranges without clearly stating the criteria for including products in those collections or ranges
4 . The following statistic is a CMA calculation: ‘The CMA’s deep dive led to investigations into the practices of ASOS, Boohoo, and George at Asda, with the CMA securing landmark changes in 2024 from the brands – which together make over £4 billion annually from UK fashion sales’. See here: Green claims: CMA secures landmark changes from ASOS, Boohoo and Asda.
5 . The compliance guide applies to all parts of the fashion sector, from retailers and brands to manufacturers, suppliers and distributors.
6 . The key piece of consumer protection legislation relevant to the CMA’s Green Claims Code, and to this investigation, is the Consumer Protection from Unfair Trading Regulations 2008 (CPRs). The CPRs contain a general prohibition against unfair commercial practices and specific prohibitions against misleading actions and misleading omissions.
7 . As an enforcer under Part 8 of the Enterprise Act 2002, the CMA cannot currently levy administrative fines for breaches of consumer law. The Digital Markets, Competition and Consumers Act (“DMCCA”), which was enacted on 24 May 2024, will among other things, give the CMA additional consumer enforcement powers – including the ability to impose financial penalties of up to 10% of a business’s worldwide turnover for breaches of consumer protection law. The Government has confirmed its intention, in a written ministerial statement, to commence the DMCCA consumer regime powers in April 2025. At present, the CMA can enforce consumer law through the courts and, where appropriate, seek additional measures to improve consumer choice, drive compliance with the law, or secure redress for consumers.
8 . All enquiries from the general public should be directed to the CMA’s General Enquiries team on general.enquiries@cma.gov.uk or 020 3738 6000.
Comments