U.K.’s CMA ‘Puts Businesses on Notice’ Over Greenwashing
U.K.’s CMA ‘Puts Businesses on Notice’ Over Greenwashing
(Bloomberg) -- The U.K.’s competition watchdog has told British businesses they have until next year to clean up any misleading green marketing claims.
The Competition and Markets Authority said it’ll carry out a full review of environmental boasts made by companies at the start of 2022, and will take action against offending firms. Industries where consumers have the most concern, including fashion and travel, will be investigated, the regulator said Monday.
“We’re concerned that too many businesses are falsely taking credit for being green, while genuinely eco-friendly firms don’t get the recognition they deserve,” Andrea Coscelli, chief executive officer of the CMA, said.
“Any business that fails to comply with the law risks damaging its reputation with customers and could face action from the CMA,” he said.
The agency said last year it was investigating the impact of green marketing on consumers after it found 40% of claims made online could be misleading.
To help businesses prepare, the CMA has released a ‘Green Claims Code’ to help firms to correctly communicate their green credentials.
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