CMA warns businesses against misleading green product claims

Businesses are being consulted about their green claims in order to crack down on misleading claims.

The Competition and Markets Authority (CMA) is now seeking views on draft guidance for businesses about ‘green’ claims.

The news comes after the CMA announced last year that it was investigating the impact of green marketing on consumers.

In particular, the proposed guidance sets out 6 principles that environmental claims should follow: they must be truthful and accurate, must be clear and unambiguous, must not omit or hide important information, must only make fair and meaningful comparisons, must consider the full life cycle of the product and must be substantiated.

Andrea Coscelli, chief executive of the CMA, commented: “Whether it’s buying clothes, cosmetics or cleaning products, more people than ever are trying to make choices which are better for the environment.

“Many businesses are already doing the right thing by being clear and upfront about how green a product really is, but that’s not always the case. We’re concerned that people are paying extra for so-called ‘eco-friendly’ products and those businesses which are genuinely investing in going green aren’t getting the recognition they deserve.

“We’re seeking views on our draft guidance, which clearly sets out what we propose businesses should do, to reduce the risk of misleading their customers. People must be able to trust the claims they see and businesses must be able to back them up.”