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."