Competition watchdog investigates Boohoo and Asda over sustainability claims
The UK’s competition watchdog is investigating Boohoo, Asda and Asos over claims about the sustainability of their fashion products including clothing, footwear, and accessories.
The move comes as part of the ongoing investigation into potential “greenwashing” by Competition and Markets Authority (CMA) and follows concerns around the way the firms’ products are being marketed to customers as eco-friendly.
Concerns include the use of vague language which may suggest collections are greener than they actually are.
The CMA said it would not hesitate to take enforcement action if the retailers were found to be misleading customers over their green credentials.
Boohoo has responded to the investigation and said it will continue to work collaboratively with the CMA adding that it is “committed to providing its customers with accurate information on the products they buy.”
Asos said it was also committed to providing clear and accurate information and added that it was “committed to playing its part in making fashion more sustainable” and was cooperating with the investigation.
Sarah Cardell, interim Chief Executive of the CMA, said: “People who want to ‘buy green’ should be able to do so confident that they aren’t being misled.
“Eco-friendly and sustainable products can play a role in tackling climate change, but only if they are genuine.
“We’ll be scrutinising 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.”
The move comes after the CMA published its Green Claims Code in September 2021.
The code aims to help businesses understand how to communicate their green credentials, while avoiding the risk of misleading shoppers.
