The UK’s Competition and Markets Authority (CMA) is launching an investigation into three fashion retailers for making misleading claims about their sustainability practices, according to a Friday (July 29) press release.
Fashion retailers ASOS, Boohoo and George at Asda have come under scrutiny as part of an investigation looking into industry-wide attempts at so-called greenwashing — when an organization spends more resources on marketing itself as environmentally friendly than on minimizing its environmental impact.
Consumers spend more than 54 billion pounds ($65 billion) every year in the fashion sector, according to the CMA press release. An initial review by the agency “identified concerns around potentially misleading green claims,” such as companies marketing their products as better for the environment without providing much evidence.
The CMA is looking into whether ASOS, Boohoo and George’s usage of vague slogans — such as the “Responsible edit” from ASOS, Boohoo’s current “Ready for the Future” range, and “George for Good” — may have made consumers think the products are more environmentally sustainable than they actually are. The agency noted that products in these lines may contain as little as 20% recycled fabric.
“People who want to ‘buy green’ should be able to do so confident that they aren’t being misled,” said Sarah Cardell, interim chief executive of the CMA. “Eco-friendly and sustainable products can play a role in tackling climate change, but only if they are genuine. We’ll be scrutinizing green claims from ASOS, Boohoo and George at Asda to see if they stack up. Should we find these companies are using misleading eco claims, we won’t hesitate to take enforcement action — through the courts if necessary.
“This is just the start of our work in this sector, and all fashion companies should take note: look at your own practices and make sure they are in line with the law,” she added.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval
Apr 26, 2024 by
CPI
UK Regulator Announces Two New Senior Executive Appointments
Apr 26, 2024 by
CPI
Paramount Global and Skydance Media Near Merger Deal, Eyeing CEO Change
Apr 26, 2024 by
CPI
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI