The CMA’s decision to investigate greenwashing for household essential items
The Competition Markets Authority (“CMA”) have recently announced their plan to examine whether ‘green’ claims made by companies producing household essential items (including food and drink) are accurate.
Why have the CMA decided to examine ‘green’ claims?
The CMA Chief Executive has stated that “We’re concerned many shoppers are being misled and potentially even paying a premium for products that aren’t what they seem”. The concept of ‘greenwashing’ has been subject to a lot of media attention recently, therefore one of the reasons underpinning the CMA’s proposal is to ensure that shoppers are receiving accurate information about the products on the shelves.
Greenwashing is the concern whereby companies claim to be environmentally conscious when in fact, it is just a marketing tactic to entice people to buy its products. The CMA want to ensure that companies are complying with their obligations under consumer law and not misleading consumers to buying its products.
The Chief Executive of the CMA, Sarah Cardell has also said “As more people than ever try to do their bit to help protect the environment, we’re concerned many shoppers are being misled and potentially even paying a premium for products that aren’t what they seem, especially at a time when the cost of living continues to rise”. Consumers are trying to balance the cost of living with buying products that are environmentally friendly. This task becomes impossible if the information provided is inaccurate.
What are some examples of greenwashing?
Greenwashing can be found in various forms, from deceptive packaging to companies lying about utilising fossil fuels. Claims such as ‘recyclable’ can constitute greenwashing if the label does not provide clear advice as to what is recyclable, whether that be the product or the packaging. Furthermore, the use of vague language such as ‘sustainable’ can be problematic if there is no concrete evidence to sustain the claim.
What products will the CMA be examining?
The CMA proposes to examine products known as ‘fast-moving consumer goods’ (“FMCG”). These are products that consumers purchase on a regular basis such as food and drink and cleaning supplies. Both in store and online FMCG products will be subject to this scrutiny.
What does this mean for businesses producing FMCG products?
If your businesses is producing FMCG products, we recommend that you evaluate the claims being made about the products to ensure that they cannot constitute greenwashing. The CMA have produced the Green Claims Code which provides guidance regarding the communication of ‘green’ status to avoid being deceptive to consumers.
If the CMA discover any greenwashing, they could commence an investigation. Therefore, it is important that, if you have a business producing FMCG products, you have an understanding of the guidance in this area.
Get in touch
If you would like to discuss anything raised in this article or discuss your food and drink business please get in touch with Daisy Divoka.
This article was prepared by Sarah Simon.