Legal & Regulatory News

UK Competition and Markets Authority publishes guidance on environmental claims to prevent greenwashing

On 20 September 2021, the UK Competition and Markets Authority (CMA) published a Green Claims Code with the aim of preventing greenwashing through providing guidance to businesses looking to communicate their environmental credentials.

The Green Claims Code sets out six principles which are designed to help businesses comply with existing obligations under consumer protection law when making environmental claims, as well as the legal framework on which they are based. The six principles are as follows:

• claims must be truthful and accurate;
• claims must be unambiguous;
• claims must be substantiated;
• claims must consider the full life cycle of the product or service;
• claims must not omit important information; and
• comparisons drawn must be fair and meaningful.

The CMA also announced that it would undertake a complete and full review of misleading green claims that have been made via both online and offline channels in early 2022.

Click here to access the Green Claims Code.