The Competition and Markets Authority is set to investigate whether descriptions and labels promoting products and services as ‘eco-friendly’ could mislead consumers.
The new programme of work is a response to the growing number of products and services being marketed as environmentally friendly, the CMA says.
The watchdog said it is concerned that this surge in demand for ‘green’ products and services “could incentivise some businesses to make misleading, vague or false claims about the sustainability or environmental impact”.
Examples of misleading behaviour noted by the CMA could include exaggerating the positive environmental impact of a product or service or implying that items are ‘eco-friendly’ through packaging and logos when this is not true.
The CMA said it is looking across a range of sectors, although it is likely to focus on industries where consumers appear most concerned about misleading claims, including textiles and fashion, travel and transport, and fast-moving consumer goods (food and beverages, beauty products and cleaning products).
As part of its work, the CMA will also consider whether failing to provide all relevant information about the sustainability of a product or service – for example, whether it’s highly polluting or non-recyclable – could mislead consumers and therefore break consumer law.
The CMA is now seeking feedback from the public on what they expect from eco-friendly products. The authority is also consulting with charities, businesses and other organisations, and is set to publish guidance next summer.
In 2019, the CMA says UK consumers spent £41 billion a year on ethical goods and services – almost four times as much as people spent two decades ago.
Andrea Coscelli, chief executive of the CMA, said: “We know that many businesses will be looking for ways to reduce their carbon footprint and we strongly support this, but the claims they make must not mislead consumers in the process. It’s important that people can easily choose between those who are doing the right thing for the environment and those who are not, so that businesses genuinely investing in going green can be properly rewarded by their customers.”
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