UK CMA to commence compliance review of sustainability claims

To help businesses understand how to communicate their green credentials while reducing the risk of misleading shoppers, the UK Competition and Markets Authority (CMA) recently published the Green Claims Code. Following an initial bedding-in period, CMA will carry out a full review of misleading green claims, both on and offline as the year begins.

CMA will prioritise which sectors to review in the coming months, which could include industries where consumers appear most concerned about misleading claims—textiles and fashion, travel and transport, and fast-moving consumer goods. However, any sector where the CMA finds significant concerns could become a priority.

The Code focuses on six principles based on existing consumer law. It is clear that firms making green claims “must not omit or hide important information” and “must consider the full life cycle of the product”, SMA said in a press note.

The Code is part of a wider awareness campaign that CMA launched recently ahead of COP26.

CMA is concerned about people being misled by environmental claims and also wants to ensure that businesses feel confident navigating the law in this area.

Where there is clear evidence of breaches of consumer law, CMA may also take action before the formal review begins.

The Code has been published following extensive consultation with businesses of all sizes and consumer groups.