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| Asos, Boohoo and George promise 'clear and accurate' eco-claims | Asos, Boohoo and George promise 'clear and accurate' eco-claims |
| (about 1 hour later) | |
| Three of the UK's biggest budget fashion brands will change the way they present the environmental impact of their clothes, following action by the competition regulator. | Three of the UK's biggest budget fashion brands will change the way they present the environmental impact of their clothes, following action by the competition regulator. |
| ASOS, Boohoo and George at Asda have signed pledges to use only "accurate and clear" claims, the Competition and Markets Authority (CMA) said. | ASOS, Boohoo and George at Asda have signed pledges to use only "accurate and clear" claims, the Competition and Markets Authority (CMA) said. |
| The firms said they remained committed to improving sustainability. | The firms said they remained committed to improving sustainability. |
| The move is part of a wider move by the CMA against "greenwashing". | The move is part of a wider move by the CMA against "greenwashing". |
| Presenting products as more eco-friendly than they are, without providing further information, is not fair on customers and distorts competition, the regulator said. | Presenting products as more eco-friendly than they are, without providing further information, is not fair on customers and distorts competition, the regulator said. |
| The CMA also has household products, such as washing up liquid and soaps in its sights. At the end of last year it said it was investigating consumer goods giant Unilever over whether some of its environmental branding was misleading. | The CMA also has household products, such as washing up liquid and soaps in its sights. At the end of last year it said it was investigating consumer goods giant Unilever over whether some of its environmental branding was misleading. |
| The CMA said following its investigation into the fashion sector, Boohoo, Asos and George at Asda had undertaken to change the way they display, describe and promote their green credentials. | The CMA said following its investigation into the fashion sector, Boohoo, Asos and George at Asda had undertaken to change the way they display, describe and promote their green credentials. |
| "What we're asking firms to do is put themselves in the shoes of their shoppers, and see whether that claim is understandable in its own right - is it accompanied by information that makes clear what that means?" said George Lusty interim executive director for consumer protection and markets at the CMA. | "What we're asking firms to do is put themselves in the shoes of their shoppers, and see whether that claim is understandable in its own right - is it accompanied by information that makes clear what that means?" said George Lusty interim executive director for consumer protection and markets at the CMA. |
| Many fashion brands market specific ranges as eco-friendly. Asos has a "Responsible edit" range, Boohoo sells clothes under "Ready for the Future", and Asda has "George for Good". | Many fashion brands market specific ranges as eco-friendly. Asos has a "Responsible edit" range, Boohoo sells clothes under "Ready for the Future", and Asda has "George for Good". |
| In future, the criteria for inclusion in these ranges must be "clearly set out and detail any minimum requirements", the CMA said. | In future, the criteria for inclusion in these ranges must be "clearly set out and detail any minimum requirements", the CMA said. |
| Greenwashing tricks: Seven ways not to be fooled | Greenwashing tricks: Seven ways not to be fooled |
| "We really want firms that are investing in their products and their supply chains, who make them greener, to take the credit for that and they deserve to get a competitive edge and win sales," Mr Lusty said. | "We really want firms that are investing in their products and their supply chains, who make them greener, to take the credit for that and they deserve to get a competitive edge and win sales," Mr Lusty said. |
| "But it's really important that when firms do make green claims that they're substantiated and accurate. That they're using words that people can actually readily understand ." | "But it's really important that when firms do make green claims that they're substantiated and accurate. That they're using words that people can actually readily understand ." |
| "We see a lot of use of the words 'eco' and 'responsible' and 'sustainable' without clear information alongside that really explains what that means." | "We see a lot of use of the words 'eco' and 'responsible' and 'sustainable' without clear information alongside that really explains what that means." |
| The CMA's investigation launched in July 2022 did not result in any legal action against the fashion firms. Instead the companies have made a range of commitments including that they will: | The CMA's investigation launched in July 2022 did not result in any legal action against the fashion firms. Instead the companies have made a range of commitments including that they will: |
| Ensure all green claims are accurate, expressed in plain language and clearly visible | Ensure all green claims are accurate, expressed in plain language and clearly visible |
| Ensure claims such as "recycled" or "organic" are backed with specific information, including the percentage of recycled or organic fibres | Ensure claims such as "recycled" or "organic" are backed with specific information, including the percentage of recycled or organic fibres |
| Avoid using "natural" imagery - such as green leaves - logos or icons in a way that suggests a product is more environmentally friendly than it actually is | Avoid using "natural" imagery - such as green leaves - logos or icons in a way that suggests a product is more environmentally friendly than it actually is |
| Ensure search filters do not show products that do not fit the search criteria, for example if a shopper has specified "recycled" | Ensure search filters do not show products that do not fit the search criteria, for example if a shopper has specified "recycled" |
| Asos said the voluntary undertakings made by the three brands would "set a benchmark" for the industry. | Asos said the voluntary undertakings made by the three brands would "set a benchmark" for the industry. |
| "Sharing clear and accurate information on the sustainability credentials of fashion products is crucial to empowering consumers to make fully informed choices," Asos said. | "Sharing clear and accurate information on the sustainability credentials of fashion products is crucial to empowering consumers to make fully informed choices," Asos said. |
| It said it remained committed to its "Fashion with Integrity" programme which includes targets to use lower-impact raw materials and design more recyclable products. | It said it remained committed to its "Fashion with Integrity" programme which includes targets to use lower-impact raw materials and design more recyclable products. |
| Boohoo said it was pleased that the CMA's 20-month investigation had not resulted in any legal action against the firm. | Boohoo said it was pleased that the CMA's 20-month investigation had not resulted in any legal action against the firm. |
| "The group has not intentionally misled customers and is committed to best-practice and providing customers with accurate information on the products they buy," Boohoo said. | "The group has not intentionally misled customers and is committed to best-practice and providing customers with accurate information on the products they buy," Boohoo said. |
| The firm's chief executive John Lyttle, said: "Along with the other retailers who have been a part of this process, we have chosen to sign a set of undertakings that will provide some helpful clarity on how the CMA's green claims code operates in practice. | The firm's chief executive John Lyttle, said: "Along with the other retailers who have been a part of this process, we have chosen to sign a set of undertakings that will provide some helpful clarity on how the CMA's green claims code operates in practice. |
| "We remain committed to working with others to find collective solutions to the shared challenges of sustainability within the fashion industry." | "We remain committed to working with others to find collective solutions to the shared challenges of sustainability within the fashion industry." |
| An Asda spokesperson said the company was pleased to have mutually agreed the voluntary undertakings. | |
| "We support any measures aimed at improving consumers' understanding of environmental claims," they said. | |
| The CMA also published an open letter to the fashion industry urging other firms to review their own environmental claims and ensure they comply with consumer protection laws. | The CMA also published an open letter to the fashion industry urging other firms to review their own environmental claims and ensure they comply with consumer protection laws. |
| Geraint Lloyd-Taylor at law firm Lewis Silkin said many observers had expected the CMA to push for financial penalties so the voluntary agreement would be a relief to the firms involved, whilst establishing clearer guidelines for the future. | |
| "There are some broad lessons here for all companies in all sectors, such as the fact the CMA has singled out the use of leafy green images as being problematic, because they are likely to exaggerate the environmental benefits of the product or ranges being promoted," he said. | |
| However the CMA was likely to be less accommodating in future if greenwashing rules were being breached, he added, highlighting new powers the CMA is about to get, allowing it to impose financial penalties of up to 10% of a firm's annual global turnover. | |
| Related Topics | Related Topics |
| Companies | Companies |
| Competition and Markets Authority | Competition and Markets Authority |
| Asos | Asos |
| Boohoo | Boohoo |
| Asda | Asda |