Watchdog launches probe into shopping basket climate claims

Manufacturers that make false or misleading claims will fall under the spotlight

A UK watchdog has launched an investigation into the accuracy of ‘green’ claims made about household essentials – such as food, drink, and toiletries – to make sure shoppers are not being misled.

The Competition and Markets Authority (CMA) is clamping down on ‘greenwashing’, where corporations celebrate their ethical and environmental initiatives to divert attention from more dubious activities, by assessing whether products that claim to be eco-friendly are being marketed to shoppers honestly.

In 2021, the average household spent almost £70 a week on food and drink alone, and fast-moving consumer goods (FMCG) – essential items such as food and drink, cleaning products, toiletries, and personal care items – are worth over £130 billion annually.

The CMA will analyse environmental claims made about such products – both online and in store – to consider whether companies are complying with UK consumer protection law.

Suspect practices could include the use of vague and broad statements like packaging or marketing a product as ‘sustainable’ or ‘better for the environment’ with no evidence, misleading claims about the use of recycled or natural materials, and entire ranges being incorrectly branded as ‘sustainable’.

Sarah Cardell, Chief Executive of the CMA, said: “These products are the essentials on everyone’s shopping lists: food and drink, shampoo, laundry detergent, toothpaste, cleaning products.

“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.

“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.”

The move comes as part of the CMA’s ongoing work into misleading green claims. In January 2022, the CMA turned its eye to the fashion sector, launching enforcement action against well-known fashion brands ASOS, Boohoo and George at Asda in July last year. The CMA wrote to the firms outlining its concerns and the investigation is ongoing.

The CMA also produced the Green Claims Code – a guide to help businesses understand how to communicate their green credentials, while avoiding the risk of misleading shoppers.