On the 18th September, the CMA published new guidance to help fashion retail businesses avoid “greenwashing” and comply with the Green Claims Code. The guidance provides practical advice and examples to help businesses navigate consumer protection laws when making environmental claims relating to clothing, footwear, fashion accessories, and related services.
Furthermore, the CMA has written to 17 well-established fashion retailers, where it urged them to review their business practices and highlighted areas of concerns regarding their green claims. Fashion brands were also reminded that the CMA will soon have new direct enforcement powers under the Digital Markets, Competition and Consumers Act 2024. This will enable the CMA to fine businesses up to 10% of their worldwide turnover if they break consumer law. Consequently, all businesses in the fashion sector should review the new guidance and take the necessary steps to ensure their environmental claims are accurate and do not mislead shoppers.
