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Antitrust investigation into ‘fast fashion green wash’ on ‘misleading’ labels extends to food and beverages

The UK Competition Authority is investigating whether companies selling food, beverages and toiletries are misleading customers by falsely labeling products as “sustainable” or “better for the environment”.

This move is a significant continuation of existing research on greenwashing in the fast fashion sector.

The Competition and Markets Authority (CMA) believes that companies are exaggerating their green credentials to encourage green consumers to buy products without any evidence to support their green claims.

According to the CMA, the survey includes foods, drinks, cleaning products, toiletries, and personal care items such as toothpaste and laundry detergent.

He added that the average family spends almost £70 a week on food and drink, which is estimated to be spending more than £130bn a year in the sector.

The regulator will investigate complaints filed online and in stores and verify their compliance with consumer protection laws.

It says the practice may include using vague and general environmental claims – such as packaging or marketing a product as “greener” or “best for the environment” without proof.

He added that misleading claims about the use of recycled or natural materials in the product and its recyclability would also be considered.

Sarah Cardell was appointed General Counsel of the Competition and Markets Authority (CMA) on 11 September 2013 and took over as Interim CEO on 26 July 2022. https://www.gov.uk/government/people/sarah-cardell
Sarah Cardell, CEO, Competition and Markets Authority (Photo: CMA)

Sarah Cardell, CEO of CMA, said: “These are products that should be on everyone’s shopping list: groceries and drinks, shampoo, laundry detergent, toothpaste, cleaning products.

“As more people seek to do their part to protect the environment, we are concerned that many customers are being misled and may even overpay for products that are not what they appear to be.”

She said the CMA’s analysis had already shown that “a greenwash is possible” and that she would “look at companies large and small to see if their environmental claims are piling up.”

The regulator, which is leading an international campaign to crack down on greenwashing claims, has issued a Code of Environmental Requirements to help companies “communicate their environmental credentials while avoiding the risk of misleading customers.”

Meanwhile, the CMA’s investigation into the fast fashion business continues. He initiated enforcement action against brands such as Asos, Boohoo and George at Asda.

Source: I News

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