CMA to begin compliance review of sustainability claims

The UK Competition and Markets Authority (CMA) recently published the Green Claims Code to help businesses understand how to convey their green credentials while reducing the risk of misleading shoppers. As the year begins, the CMA will conduct a complete evaluation of misleading green claims, both online and offline, after a brief time of adjustment.

In the coming months, the CMA will prioritize which sectors to examine, which might include textiles and fashion, travel and transportation, and fast-moving consumer goods—industries where consumers appear to be most concerned about deceptive statements. However, any sector in which the CMA finds major issues could become a priority.

The Code is founded on six principles that are already in place in consumer law. In a news release, SMA stated that companies making green claims “must not omit or hide key facts” and “must evaluate the whole life cycle of the product.”

The Code is part of a larger public awareness campaign launched by CMA lately in advance of COP26.

The CMA is worried that environmental statements may mislead consumers, and it also wants to ensure that firms are confident in their ability to navigate the law in this area. Before the formal assessment begins, the CMA may take action if there is clear evidence of a breach of consumer law.

Following considerable consultation with businesses of all sizes and consumer groups, the Code was published.