Now, Netherlands Trashes H&M's Sustainability Claims; Decathlon Indicted Too; BCI Tag Not Enough

Clothing retail chain H&M and sporting goods retail chain Decathlon have made commitments to the Netherlands Authority for Consumers and Markets (ACM) promising to adjust or no longer use sustainability claims on their clothes and/or websites. The two chains have committed to informing consumers more clearly in order to minimise the risk of misleading practices involving sustainability claims.

Long Story, Cut Short
  • The two multinational chains have, after being charged, committed to informing consumers more clearly in order to minimise the risk of misleading practices involving sustainability claims.
  • The ACM will not impose any sanctions, but will continue to keep a close watch on the clothing sector.
  • The ACM order is significant in that it does not take Better Cotton Initiative (BCI) tag as the gospel truth.
A dress that H&M sells under its 'Conscious' tag in Hong Kong. The investigation by the Netherlands Authority for Consumers & Markets revealed that H&M offered their products using general terms such as “ecodesign” and “conscious“ without immediately specifying clearly the sustainability benefits with the claim.
What's 'conscious' about it A dress that H&M sells under its 'Conscious' tag in Hong Kong. The investigation by the Netherlands Authority for Consumers & Markets revealed that H&M offered their products using general terms such as “ecodesign” and “conscious“ without immediately specifying clearly the sustainability benefits with the claim. Twelve Photographic Services / H&M Group

Swedish fast fashion monolith H&M and French sporting goods retail chain Decathlon have been found to have made unsubstantiated sustainability claims on their apparel by Dutch watchdog, the Netherlands Authority for Consumers and Markets (ACM).

The Authority on Tuesday said that the two multinational chains have, after being charged, committed to informing consumers more clearly in order to minimise the risk of misleading practices involving sustainability claims. The two chains will also make donations of €500,000 and €400,000, respectively, to different sustainable causes to compensate for their use of unclear and insufficiently substantiated sustainability claims.

Both H&M and Decathlon have made these commitments following an ACM investigation. The ACM will not impose any sanctions, but will continue to keep a close watch on the clothing sector. The ACM will enforce compliance with these commitments over the next two years.

Both the cases were dated 19 August, but were announced on 13 September.

The Dutch indictment is significant. Earlier this year in May, the Norwegian Consumer Agency (Forbrukertilsynet) had ruled that the Higg MSI tool was not sufficient as a basis for the environmental claims that outdoor brand Norrøna and fast fashion giant H&M had been using in marketing themselves and their products. The NCA, in a ruling, said that Norrøna was breaking the law when they marketed their clothes as environment-friendly. Now, H&M has been issued the same warning against using the same type of marketing. The Sustainable Apparel Coalition (SAC), in the dock over the use of its Higg MSI tool, has paused the 'transparency' tool across the world.

The ACM order is significant in that it does not take Better Cotton Initiative (BCI) tag as the gospel truth. In the H&M decision, the ACM remarked: "The majority of the cotton is purchased through the Better Cotton Initiative (BCI). However, with cotton purchased through BCI, it is impossible to guarantee that an individual product actually contains any Better Cotton threads, thus making it impossible to claim with certainty that the cotton is sustainable."

The ACM remarked: "The majority of the cotton is purchased through the Better Cotton Initiative (BCI). However, with cotton purchased through BCI, it is impossible to guarantee that an individual product actually contains any Better Cotton threads, thus making it impossible to claim with certainty that the cotton is sustainable."
What's 'better' about it The ACM remarked: "The majority of the cotton is purchased through the Better Cotton Initiative (BCI). However, with cotton purchased through BCI, it is impossible to guarantee that an individual product actually contains any Better Cotton threads, thus making it impossible to claim with certainty that the cotton is sustainable." H&M Group

The case against H&M and Decathlon

In the spring of 2021, the ACM had asked the two clothing retailers to take a critical look at their claims. The ACM subsequently continued its investigation into H&M and Decathlon, among other retail chains.

The investigation revealed, for example, that Decathlon and H&M offered their products using general terms such as “ecodesign” and “conscious“ without immediately specifying clearly the sustainability benefits with the claim. In the course of the investigation, the two retailers indicated they were willing to adjust their practices, and to make commitments.

The most important findings of ACM’s investigation into H&M’s commercial practices were:

  • H&M uses the sustainability claims “Conscious” and “Conscious Choice”, without explaining what these actually mean. In addition, an explanation of the sustainability benefits for specific products is lacking.
  • H&M provides information about its sustainability efforts under the heading “product background” (in Dutch: “productachtergrond”) of individual products, regardless of whether these are made of “more sustainable” materials, which may incorrectly give the impression that these products have sustainability benefits. In these texts, H&M emphasises the intentions to work with more sustainable materials, without making clear what the current status is with regard to those intentions, thereby allowing too rosy a picture about the current state-of-play to emerge. Moreover, in the text about cotton, H&M gives the impression that all cotton that H&M Nederland uses is “sustainable” (in Dutch: “duurzaam”). The majority of the cotton is purchased through the Better Cotton Initiative (BCI). However, with cotton purchased through BCI, it is impossible to guarantee that an individual product actually contains any Better Cotton threads, thus making it impossible to claim with certainty that the cotton is sustainable.

The most important findings of ACM’s investigation into Decathlon’s commercial practices were:

  • Decathlon uses the sustainability claim “Ecodesign”, without immediately specifying clearly the sustainability benefits with the claim.. In addition, an explanation regarding the sustainability benefits is missing for specific products. Also, the sustainability benefits of several products are not or only sparingly explained on the product page. Finally, Decathlon uses a sustainability filter “Ecodesign” of which the explanation is vague and unclear. In the explanation of the filter, the criteria for the “Ecodesign” products are not clear.
  • Decathlon uses the “Environmental labelling system”, in which they gave grades to, in any case, “Ecodesign” products, ranging between A and E. These grades and the functioning of the environmental labelling system were not or only sparingly explained by Decathlon.

Guidelines on sustainability claims: The ACM also, on the occasion, made clear the five rules of thumb for honest sustainability claims:

  1. Make clear what sustainability benefit the product offers;
  2. Substantiate your sustainability claims with facts, and keep them up-to-date;
  3. Comparisons with other products, services, or companies must be fair;
  4. Be honest and specific about your company’s efforts with regard to sustainability;
  5. Make sure that visual claims and labels are useful to consumers, not confusing.

Consumers that wish to make sustainable choices must be able to have confidence in the veracity of the claims that businesses make on their products or websites. We are pleased to see that these companies have acknowledged that they should have informed consumers more clearly about the sustainability aspects of their products, and that they will adjust various sustainability claims and their substantiations. They will also take measures to inform their customers better in the future. We also welcome their commitment to donate generous sums of money to sustainable causes as compensations for their vague sustainability claims. These donations go to independent organizations that contribute towards sustainability and clothing.

Cateautje Hijmans van den Bergh
Member of the Board
Authority for Consumers & Markets , Netherlands
Cateautje Hijmans van den Bergh
 
 
  • Dated posted: 13 September 2022
  • Last modified: 13 September 2022