The UK’s Competition and Markets Authority (CMA) is to scrutinise ‘green’ claims on food and drink product labels to clamp down on potential greenwashing.
The competition watchdog’s probe – which will also include other FMCG products such as toiletries and cleaning products – follows a similar investigation launched last year into misleading green claims in the country’s fashion industry. A number of firms in that sector are still being investigated.
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Its scrutiny of food and drink products labels will analyse environmental claims made about these items – both online and in-store – to consider whether companies are complying with UK consumer protection law.
In a statement issued today (26 January), the CMA said concerning practices could include the use of vague and broad eco-statements – for example, packaging or marketing a product as ‘sustainable’ or ‘better for the environment’ with no evidence – and misleading claims about the use of recycled or natural materials in a product and how recyclable it is.
Sarah Cardell, chief executive of the CMA, said: “Our work to-date has shown there could be greenwashing going on in this sector, and we’ll be scrutinising companies big and small to see whether their environmental claims stack up. Now is a good time for businesses to review their practices and make sure they’re operating within the law.”
She added: “As more people than ever try to do their bit to help protect the environment, we’re concerned many shoppers are being misled and potentially even paying a premium for products that aren’t what they seem, especially at a time when the cost of living continues to rise.”
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By GlobalDataThe CMA said that if it uncovers evidence suggesting green claims could be unfounded, it will consider taking enforcement action using its formal powers – for example, opening an investigation into specific companies.
As well as sector-specific investigations, the CMA has produced the Green Claims Code – a guide to help businesses understand how to communicate their green credentials, while avoiding the risk of misleading shoppers.
