Fashion greenwashing: investigation into ASOS, Boohoo and Asda

The CMA has opened an investigation into 3 fashion brands to scrutinise their ‘green’ claims.

From:
Competition and Markets Authority
Published
26 January 2023
Last updated
27 March 2024 — See all updates
Case type:
Consumer enforcement
Case state:
Closed
Market sector:
Clothing, footwear and fashion
Opened:
29 July 2022
Closed:
27 March 2024

Sector-specific guide for fashion businesses

18 September 2024: We have published a compliance guide to help fashion businesses stay on the right side of consumer law when making environmental claims. The guide draws from the conclusions of this investigation and builds on the principles of the Green Claims Code.

Undertakings accepted from ASOS, Boohoo and George at Asda

27 March 2024: ASOS, Boohoo and George at Asda have signed formal agreements to use only accurate and clear green claims. The undertakings secured by the CMA commit ASOS, Boohoo and George at Asda to change the way they display, describe, and promote their green credentials, meaning millions of customers can expect to see clear and accurate green claims.

The firms have each signed an undertaking that commits them to an agreed set of rules around the use of green claims. Amongst other things, these include:

  • Green claims: ASOS, Boohoo and George at Asda must ensure all green claims are accurate and not misleading. Key information must be clear and prominent, meaning it must be expressed in plain language, easy to read, and clearly visible to shoppers.
  • Statements regarding fabrics: Statements made about materials in green ranges must be specific and clear, such as ‘organic’ or ‘recycled’, rather than ambiguous – e.g. using terms like ‘eco’, ‘responsible’, or ‘sustainable’, without further explanation. The percentage of recycled or organic fibres must be clearly displayed and easy for customers to see. A product cannot be called ‘recycled’ or ‘organic’ unless it meets certain criteria.
  • Criteria for green ranges: The criteria used to decide which products are included in environmental collections – such as ASOS’s former ‘Responsible edit’, Boohoo’s ‘Ready for the Future’ range, and George at Asda’s ‘George for Good’, and any further ranges – must be clearly set out and detail any minimum requirements. For example, if products need to contain a certain percentage of recycled fibres to be included in the range, this should be made clear. Products must not be marketed or labelled as part of an environmental range unless they meet all the relevant criteria.
  • Use of imagery: The firms must not use ‘natural’ imagery – such as green leaves – logos, or icons to suggest a product is more environmentally friendly than it actually is.
  • Product filters: Search filters must be accurate, only showing items that meet the filter requirements – for example, if a consumer uses a filter to show ‘recycled’ trousers, only trousers made from predominantly recycled materials should be shown.
  • Environmental targets: Any claims made to consumers about environmental targets must be supported by a clear and verifiable strategy, and customers must be able to access more details about it. Such information should include what the target is aiming to achieve, the date by which it is expected to be met, and how the company in question will seek to achieve that target.
  • Accreditation schemes: Statements made by the companies about accreditation schemes and standards must not be misleading. For example, statements must make clear whether an accreditation applies to particular products or to the firm’s wider practices.

All 3 firms must also regularly provide the CMA with reports on how they are complying with the commitments they signed – as well as taking steps to improve their internal processes.

As part of today’s update, the CMA has also issued an open letter to the sector, urging fashion retail businesses to review their claims and practices in light of the undertakings, which set a benchmark for the industry.

To further help businesses stay on the right side of the law, the CMA is set to build on its current Green Claims Code, with additional information that will be tailored to the fashion sector.

Launch of investigation

Watch our video to find out more

29 July 2022: The CMA is concerned about the way the firms’ products are being marketed to customers as eco-friendly.

The investigation will scrutinise environmental claims made by ASOS, Boohoo and George at Asda about their fashion products, including clothing, footwear, and accessories. Several issues will be examined, including whether:

  • the statements and language used by the businesses are too broad and vague, and may create the impression that clothing collections – such as the ‘Responsible edit’ from ASOS, Boohoo’s current ‘Ready for the Future’ range, and ‘George for Good’ – are more environmentally sustainable than they actually are

  • the criteria used by some of these businesses to decide which products to include in these collections may be lower than customers might reasonably expect from their descriptions and overall presentation – for example, some products may contain as little as 20% recycled fabric

  • some items have been included in these collections when they do not meet the criteria used by the business

  • there is a lack of information provided to customers about products included in any of the companies’ eco ranges, such as missing information about what the fabric is made from

  • any statements made by the companies about fabric accreditation schemes and standards are potentially misleading, such as a lack of clarity as to whether the accreditation applies to particular products or to the businesses’ wider practices

At this early stage, the CMA has not reached a view as to whether there have been any breaches of consumer protection law.

The CMA’s wider review of the fashion sector and potentially misleading environmental claims in other sectors will continue as the CMA will also consider whether to open further investigations.

Press release: ASOS, Boohoo and Asda investigated over fashion ‘green’ claims (29.7.22)

Compliance review

10 January 2022: The CMA has commenced a review of environmental claims in the fashion retail sector. This follows publication of its guidance on making environmental claims on goods and services. The CMA plans to look at other sectors in due course. However, where there is evidence of breaches of consumer law outside of the fashion retail sector, the CMA may choose to take appropriate action before the review of fashion retail has completed.

It is estimated that UK consumers spend £54 billion annually on clothing and footwear, and this is expected to continue to grow in the coming years. According to some estimates, fashion is responsible for between 2 and 8% of global carbon emissions. More and more people are trying to choose more environmentally sustainable options when buying clothes. More and more fashion businesses are making environmental claims.

This includes claims that individual items of clothing are sustainable or better for the environment, claims about use of recycled materials in new clothing and entire ranges of clothing within stores being branded as ‘sustainable’.

The CMA’s review will examine environmental claims across the fashion retail sector in the UK to determine whether or not businesses are complying with consumer protection law. Where we identify businesses which we think are ‘greenwashing’ we will take appropriate action.

Contact

The CMA continues to want to hear from you if you have experience of the types of issues covered in the green claims code.

Details of your experience can be shared with the CMA by email to: [email protected]

Updates to this page

Published 26 January 2023
Last updated 27 March 2024 + show all updates

  1. Undertakings accepted from ASOS, Boohoo and George at Asda.

  2. First published.

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