17 Brands advised to review practices as CMA outlines compliance guidelines

17 well-known fashion brands have been advised by the Competition Markets Authority (CMA) to review business practices in regards to their green claims. The move has led the UK watchdog to issue a compliance guide based on its already existing Green Claims Code, with it hoping that these further tips can help in levelling the playing field and encourage shoppers to seek out trustworthy green claims. The CMA noted that it has not launched enforcement action against the 17 firms, and would “not be naming them at this time”.

In a release, 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.”

CMA readies retailers for incoming DMCCA

Tips in the tailored guideline set out by the CMA include, among other things, giving clear and complete information about products; ensuring green criteria used to assess collections is clear and details any minimum requirements; not labelling products as sustainable unless they meet this criteria; being specific in the use of filters to search for green products; and being clear if the claim is based on specific parts of a product’s life cycle.

The CMA published the guide after sending letters to the brands in question, to which it raised concerns in relation to the use of broad or general terms and whether certain products were wrongly labelled as ‘eco’, among other issues. The letters also served as a reminder that the CMA will soon have increased power under the Digital Markets, Competition and Consumers Act 2024 (DMCCA), the organisation stated, including the ability to fine businesses up to 10 percent of their worldwide turnover if they break consumer law. The enforcement of the Act is expected to be initiated by the government in April 2025.

This latest action sees the CMA double down on its pursuit of a fairer approach to sustainability and eco-communication across the UK fashion sector. The organisation had previously made its intentions known when it launched an investigation into the practices of British retail giants Asos, Boohoo and George at Asda, diving into each of the companies’ green claims in light of allegations of ‘greenwashing’. The move resulted in “landmark changes” at the fashion firms, with each signing undertakings requiring them to follow an agreed set of rules around such claims, seeing them adjust and promote related credentials more accurately.