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Fashion industry greenwashing report overview:
- Who: Fashion retailers in the UK are responsible for five out of 21 complaints made to the Competition and Markets Authority over false “green” claims since 2021, a report has found
- Why: The complaints come after the Green Claims Code was introduced by the government last year to stop businesses making inaccurate claims about environmental credentials
- Where: UK
Fashion retailers are responsible for nearly a quarter of UK complaints relating to greenwashing—or making unsubstantiated claims about the “sustainability” of a product—a new report has found.
The research released by international law firm RPC found that five out of 21 complaints made to the Competition and Markets Authority (CMA) since the Green Claims Code was introduced in September 2021 related to the fashion industry, Retail Gazette reports.
The Code aims to stop businesses making inaccurate or misleading claims about their environmental credentials, or the environmental credentials of their products.
For example, complaints made about fashion and retail brands might include false or misleading claims about the use of recycled materials in a clothing line, claims that the clothing is manufactured in a “sustainable” way or that buying the product will be beneficial to the environment.
Tougher regulatory landscape
Since the code was introduced, businesses that engage in ‘greenwashing’ face a toughening litigation landscape in the UK, Retail Gazette reports.
Businesses found to have made false or misleading environmental claims could be sued under a class action lawsuit, and forced to pay damages.
Of the 21 complaints received since the Green Claims Code came out, six related to packaging, five to fashion and three to groceries.
In April, the government confirmed its plan to give the CMA more power to impose sanctions on businesses found to be breaching consumer protection laws.
The plan includes the ability to fine businesses as much as 10% of their annual global turnover for breaches, which could include making false environmental claims.
The news comes as the board of directors for Shell are being accused of failing to properly prepare for the transition to cleaner energy in the face of climate change, according to a recent shareholder derivative lawsuit.
Are you concerned about businesses making false environmental claims? Let us know in the comments!
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