CMA publishes Green Claims Code; to carry out full review of misleading claims

The Competition and Markets Authority (CMA) has asked businesses to make sure that their environmental claims comply with the law by the end of this year as the regulator is set to carry out a full review of misleading green claims early next year.

The CMA also published today its final guidance for businesses to help them understand and comply with their existing obligations under consumer law.

The ‘Green Claims Code’, focuses on six principles which are based on existing consumer law, making it clear that firms making green claims “must not omit or hide important information” and “must consider the full life cycle of the product”.

“More people than ever are considering the environmental impact of a product before parting with their hard-earned money. We’re concerned that too many businesses are falsely taking credit for being green, while genuinely eco-friendly firms don’t get the recognition they deserve,” Andrea Coscelli, chief executive of the CMA, said.

“The Green Claims Code has been written for all businesses – from fashion giants and supermarket chains to local shops. Any business that fails to comply with the law risks damaging its reputation with customers and could face action from the CMA,” he added.

The Code is part of a wider awareness campaign which the CMA has launched today ahead of COP26.

Following an initial bedding-in period, the CMA will carry out a full review of misleading green claims, both on and offline (e.g. claims made in store or on labelling), at the start of 2022.

The regulator said it will prioritise which sectors to review in the coming months, which could include industries where consumers appear most concerned about misleading claims including food and beverages, among others.

CMA urged businesses to check their green claims against the Code and seek legal advice if they are unsure whether their claims comply with the law.