Crackdown: UK Regulator to Examine ASOS, Boohoo, Asda over Greenwashing Allegations

The official UK watchdog has expressed concern at the way three fast fashion chains are marketing their products to customers as eco-friendly, and said that it will examine environmental claims across the fashion retail sector to determine whether or not businesses are complying with consumer protection law.

Long Story, Cut Short
  • The CMA is investigating the ‘Responsible edit’ from ASOS, Boohoo’s current ‘Ready for the Future’ range, and ‘George for Good’ – whether they are more environmentally sustainable than they actually are.
  • The CMA said that the statements and language used by the businesses are too broad and vague.
  • There is a lack of information provided to customers about products included in any of the companies’ eco ranges.
The CMA review will examine environmental claims across the fashion retail sector in the UK to determine whether or not businesses are complying with consumer protection law, and has warned "appropriate action" wherever it thinks there is ‘greenwashing’.
Checks & Audits The CMA review will examine environmental claims across the fashion retail sector in the UK to determine whether or not businesses are complying with consumer protection law, and has warned "appropriate action" wherever it thinks there is ‘greenwashing’. Boohoo

UK’s Competition and Markets Authority (CMA) has opened an investigation to scrutinise the ‘green’ claims by fast fashion chains ASOS, Boohoo and George at Asda about their fashion products, including clothing, footwear, and accessories.

Greenwashing Allegations: The CMA said it is “concerned about the way the firms’ products are being marketed to customers as eco-friendly.” The CMA review will examine environmental claims across the fashion retail sector in the UK to determine whether or not businesses are complying with consumer protection law. “Where we identify businesses which we think are ‘greenwashing’ we will take appropriate action.”

The issues that will be examined, will include whether:

  • the statements and language used by the businesses are too broad and vague, and may create the impression that clothing collections – such as the ‘Responsible edit’ from Asos, Boohoo’s current ‘Ready for the Future’ range, and ‘George for Good’ – are more environmentally sustainable than they actually are;
  • the criteria used by some of these businesses to decide which products to include in these collections may be lower than customers might reasonably expect from their descriptions and overall presentation – for example, some products may contain as little as 20% recycled fabric;
  • some items have been included in these collections when they do not meet the criteria used by the business;
  • there is a lack of information provided to customers about products included in any of the companies’ eco ranges, such as missing information about what the fabric is made from;
  • any statements made by the companies about fabric accreditation schemes and standards are potentially misleading, such as a lack of clarity as to whether the accreditation applies to particular products or to the businesses’ wider practices.
The CMA has written to the 3 firms outlining its concerns and will use its information gathering powers to obtain evidence to progress its investigation. How the review develops will depend on the CMA’s assessment of the evidence before it.
Under the Scanner The CMA has written to the 3 firms outlining its concerns and will use its information gathering powers to obtain evidence to progress its investigation. How the review develops will depend on the CMA’s assessment of the evidence before it. Asos
  • At this early stage, the CMA said, it has not reached a view as to whether there have been any breaches of consumer protection law.
  • The CMA’s wider review of the fashion sector and potentially misleading environmental claims in other sectors will continue as the CMA will also consider whether to open further investigations.
  • It was in January this year that CMA commenced a review of environmental claims in the fashion retail sector. This follows publication of its guidance on making environmental claims on goods and services.

How UK shops fashion: It is estimated that UK consumers spend £54 billion annually on clothing and footwear, and this is expected to continue to grow in the coming years.

  • According to some estimates, fashion is responsible for between 2 and 8% of global carbon emissions.
  • More and more people are trying to choose more environmentally sustainable options when buying clothes.
  • More and more fashion businesses are making environmental claims. This includes claims that individual items of clothing are sustainable or better for the environment, claims about use of recycled materials in new clothing and entire ranges of clothing within stores being branded as ‘sustainable’.

Road ahead: Together with the Authority for Consumer and Markets (ACM) in the Netherlands, the CMA is also co-leading a project under the auspices of the International Consumer Protection Enforcement Network (ICPEN). This project also plans to publish high-level guidance for businesses that could help to set consistent global expectations on the truthfulness of environmental claims.

People who want to ‘buy green’ should be able to do so confident that they aren’t being misled. Eco-friendly and sustainable products can play a role in tackling climate change, but only if they are genuine.

We’ll be scrutinising green claims from ASOS, Boohoo and George at Asda to see if they stack up. Should we find these companies are using misleading eco claims, we won’t hesitate to take enforcement action—through the courts if necessary.

Sarah Cardell
Chief Executive (Interim)
Competition and Markets Authority
Sarah Cardell
 
 
  • Dated posted: 29 July 2022
  • Last modified: 19 September 2024