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The fashion industry is among the biggest offenders for ‘greenwashing’ claims. Fashion is also responsible for between 2% and 8% of global carbon emissions. The Competition and Markets Authority (CMA) found that around 40% of greenwashing claims (otherwise known as ‘green’ or ‘eco-friendly’ claims) are potentially misleading. The growing demand for consumer interest in sustainable products has led businesses to use green claims as a marketing tool, until it caught the regulator’s attention. ‘Greenwashing claims’, a term coined by environmentalist Jay Westervelt, occur when brands give false or misleading environmental claims or vague statements that claim to offer products, processes and services that give a false impression about how a company’s products are environmentally friendly or less harmful to the environment than other products in the market.

Background and key legislation

On 29 July 2022 the CMA announced its investigation into fast-fashion retailers ASOS, Boohoo and ASDA for potentially misleading consumers into believing their products are environmentally friendly. This comes after the CMA proposed that it would name and shame the worst offenders.

Approximately £54 billion is spent by consumers each year on the fashion industry. According to the CMA, entire lines of clothing are being labelled as ‘environmentally friendly’ without proof about their environmental processes. The main legislation relevant to greenwashing claims is the Consumer Protection from Unfair Trading Regulations 2008 (CPUT). The CPUT imposes a general prohibition on all traders, including in fashion, from engaging in misleading actions and misleading omissions. For example, when a company claims a product can be recycled when it cannot in fact be used again at the end of life.

Key principles of the CMA’s Green Claims Code

There’s caution against companies to avoid the rising litigation of greenwashing claims. Consumers in England and Wales are largely protected by laws and regulations around misleading or false advertisements such as those of the Advertising Standards Authority Standards (ASA). This follows the publication of the CMA’s Green Claims Code in September 2021, which sets out how companies may comply with the code to ensure compliance with consumer protection laws. The code applies to all businesses involved in the fashion cycle, including manufacturers, wholesalers and marketplaces. The CMA’s six criteria, or the code, for assessing greenwashing acts as guideline to help businesses comply with consumer protection laws. The code states that:

• claims must be truthful and accurate;
• claims must be clear and unambiguous so that the consumer can make an informed choice on the products, services, brands and activities;
• claims must not omit or hide important relevant information such as what the fabric is made from;
• comparisons must be fair and meaningful to meet the same needs or intended for the same purpose;
• claims must be substantiated with evidence; and
• in making a claim you must consider the full life cycle of the product or service.

Sustainability-focused marketing caters to eco-conscious consumers by including common greenwashing phrases, such as ‘eco’, ‘sustainable’, ‘made with organic or recycled materials’, and ‘greener’ as part of their branding. As a consumer, you can find out what materials are being used to create the clothes by checking the label or the online description. Fast-fashion brands tend to make ‘sustainable collections’ but this doesn’t make up the whole of their fashion lines.  

What next?

While this is a relatively new area, greenwashing claims have, so far, been under looked by UK regulators. Greenwashing claims could have an impact on the UK’s ability to meet its climate change targets. To improve, corporations are looking at their sustainability processes and communications. Ultimately, this is a step in the right direction but we’re likely to see a number of greenwashing claims over the next few years due to the emphasis on environmentally friendly fashion.