Which? has carried out a study which has highlighted widespread greenwashing. It reviewed over 20,000 online product listings to find green claims in a range of categories spanning food, cleaning, electronics, clothing and personal care items, across popular UK retailers.
The CMA introduced the Green Claims Code in 2021 to combat greenwashing, protect consumers from being misled and to promote fair competition among businesses by ensuring that those making genuine environmental claims are able to benefit from them.
Which? found that over 60% of products breached some aspect of the Code, which, it says, suggests systemic issues with how eco-friendly credentials are being communicated.
According to the study, cleaning products, electronics and accessories, and personal hygiene products had the highest proportion of products failing checks for multiple principles, according to the research. By contrast, sectors like fresh produce fared better, perhaps due to strict regulation of organic certifications.
Claims must be clear and unambiguous
If listings used words such as 'eco', 'sustainable' or 'environmentally friendly' in the product description, they usually did not justify, explain or provide any context to the use of the word at all. An example was a listing for a coffee which said that it was 'ethically sourced' from 'sustainable farms' but there was no other explanation to support these claims.
Comparisons must be fair and meaningful
Which? found nearly 90% of products using comparisons risked falling short. For example, a mobile phone listing claimed to use "more recycled materials" without stating what the comparison was based on (eg with a previous model or other smartphones) or providing any evidence.
Claims must be substantiated
Which? found that over 60% of products did not substantiate their claims and over 90% did not provide any links, QR codes or references where consumers could find more information. An example included a description for tinned chickpeas which had multiple green claims relating to the chickpeas being organic and having "zero air miles".
Claims must consider 'the full life cycle of the product or service
An example under this heading was leggings which claimed to be made from "85% Recycled polyester" and said "made with a series of recycled materials and at least 70% recycled content, this product represents just one of our solutions to help End Plastic Waste". The description did not mention other significant issues that may be relevant to the product's lifecycle.
Who writes the product descriptions?
Where products are sold through third-party retailers, it may not be clear who wrote the product descriptions. Brands do usually provide approved marketing wording to those retailers, but retailers may make edits, and updates made by the brand can take some time to trickle through. Product descriptions used may vary across retailers and from what is found on the brand's own website.
While further investigation is needed to uncover whether green claims are actually true, Which? is concerned that misleading claims could erode public trust and the use of sustainability claims may be seen as more of a marketing tool than any real effort to be more environmentally friendly.
The ASA and CMA have taken action against greenwashing, but Which? thinks that the scale of the issues it has uncovered means that the Green Claims Code may not be working as it should. It also believes these findings highlight the need for stronger enforcement from regulators against firms that are misleading consumers and support for businesses that are serious about complying with the Code (something that the CMA has also said - that it wants to support a level playing field for ethical businesses which comply with consumer law).
How does this affect businesses?
The new rules in the Digital Markets, Competition and Consumers Act have only been in force for a few months, but the CMA has made clear that it will take swift action on egregious breaches. As well as the Green Claims Code, it introduced sector guidance for the fashion industry and has demonstrated its willingness to take action under its previous powers.
As we've highlighted, the EU appears to be having a rethink about green claims and it has been reported that it is planning to withdraw the proposed Green Claims Directive. However, both UK and EU law on misleading claims cover green claims.
Therefore, businesses need to make sure that they take the Green Claims Code into account when creating product descriptions and advertising to avoid the CMA (or the ASA's) attention.
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