Never let it be said that the Competition Markets Authority (the CMA) doesn’t play fairly, having displayed an exceptional degree of leniency towards the UK fashion industry this past week, that no doubt leaves many a marketing exec mopping a brow and exhaling a deep sigh of relief.
It wasn’t so much a public dressing-down but a stern word of warning that 17 ‘well-known’ fashion brands received last week, when the CMA called out the scale of the ‘greenwashing’ problem that persists across some of the biggest names on the fashion scene today.
With patience now beginning to wane somewhat, the move has since prompted the UK watchdog to release a new ‘greenwashing compliance guide‘ to provide the fashion sector clear-cut messaging – and its starkest warning to date – all based on the rules now put in place by its Green Claims Code.
The CMA states it won’t be naming the fashion companies in question ‘at this time’ nor will it be enforcing action over the messaging said businesses have been using in the promotion of their sustainability credentials. It has, however, alluded strongly that with the issuance of this new ‘greenwashing compliance guide’, this latest lifeline could very well be the fashion industry’s last chance before heavy fines are implemented.
According to Hayley Fletcher, interim senior director of consumer protection, the new “hands-on guide” will allow fashion retailers to “really get to grips with their obligations under consumer law” adding that this also means “there’s now no excuse for using misleading green claims.”
“All fashion companies – from designer labels to budget-friendly brands or independent boutiques – must be transparent and honest with their customers or risk enforcement action,” she said.
Tips in this tailored guideline include giving clear and complete information about products; ensuring green criteria used to assess collections is clear and details any minimum requirements; not labelling products as sustainable unless they meet this criteria; being specific in the use of filters to search for green products; and being clear if the claim is based on specific parts of a product’s life cycle.
This all comes with the reminder that the CMA will soon have increased power under the Digital Markets, Competition and Consumers Act 2024 (DMCCA) to fine businesses up to 10% of their worldwide turnover if they break consumer law. The enforcement of the Act is expected to be initiated by the government in April 2025.
Established five years ago to provide support and resources for a global brand licensing and consumer products industry grappling with the environmental legislative demands and legal requirements of the ever-shifting business landscape, Products of Change and its extended community and network of specialists offer an extensive library of educational tools to help brands and brand owners navigate their journey of sustainable development.
Brands looking to get-up their current understanding of the UK’s Green Claims Code can find a Products of Change informative whitepaper on the subject within this resource library here.
