Mark Smith’s Post

CMA Drops Investigation Into Unilever’s ‘Green’ Claims The Competition and Markets Authority (CMA) said yesterday that it had closed an investigation into whether Unilever had overstated the “green” credentials of some of its products after the consumer goods company made changes to its packaging. The competition regulator stated that its probe, which was launched in December last year, had been closed following “changes Unilever has made to claims on some of its products”, as well as wider changes seen across the industry following the regulator’s focus on this area. The CMA said last year that it was looking at some of the environmental claims made by the manufacturer, suggesting it could be overstating how “natural” some of its cleaning products and toiletries were. The competition watchdog was also concerned that the use of some images and logos – such as green leaves – could make items appear more eco-friendly than they actually were. In a statement issued on Wednesday, it said: “The CMA’s Green Claims Code and successful enforcement action to date has helped businesses understand how they can promote their green credentials whilst staying on the right side of the law. The CMA has seen positive changes to the claims made, including in the fast-moving consumer goods sector. “Given these points and the ongoing impact of the CMA’s work, the CMA has decided as a matter of administrative priority to close this investigation. The CMA has not taken a view on Unilever’s compliance with consumer law. Businesses should ensure they comply with the law and read the Green Claims Code.” The regulator stated that it had not taken a view on Unilever’s compliance with consumer law. In response to the decision, a spokesperson from the manufacturer said: “We are pleased that the CMA has confirmed they are closing their investigation. We have complied with all requests for information throughout this process. “We have always been committed to making responsible claims about the benefits of our products on our packs and to these being transparent and clear, and we have robust processes in place to make sure any claims can be substantiated.” NamNews Implications: * The CMA achieved compliance with its code… * …a mark of good and effective regulation. * (and patently leaving the nuances of compliance with Consumer Law to the judiciary) * In the end, as always, much depends on consumer perception of compliance with the Spirit of the Law vs. Letter of the Law… #SustainabilityUnilever #Regulation

https://lnkd.in/eVF6jFDj Introduced in September 2021, as the CMA began to sharpen its focus on greenwashing, the GCC is intended as a guide for companies making any claim on the environmental credentials of its product or service. Though the code doesn’t have legislative footing itself, it’s used as a framework to decide whether or not any such claim breaches consumer protection laws that prohibit consumers from being misled. Crucially, any such breach could see offending companies face more than an embarrassing visit to court. Later this year, the Digital Markets, Competition & Consumers (DMCC) Act is expected to come into force, granting the CMA the ability to dish out fines of up to 10% of global turnover. “The DMCC Act is a game-changer,” says Duncan Reed, partner at UK law firm TLT, which will force even the most laissez-faire brand or retailer to get to grips with what’s allowed.

👋 This is your friendly reminder to sign up to next Thursday’s Green Claims Data Standard webinar! In it, our CEO Abbie Morris will be discussing what data brands need to have in order to make fully compliant green claims. Don’t forget: updates to consumer protection law in multiple markets (including the UK and the EU 🇬🇧 🇪🇺!) require all green claims to be robust, specific, and substantiated. Failure to do so can put you at risk of legal action, hefty fines, reputational damage, and more—even if you have the best intentions. Make sure your sustainability efforts don’t go to waste; get clued up today👇 https://lnkd.in/eEx7jssR

On 22 March 2023, the European Commission presented a proposal for a #directive on #green claims. This proposed #directive compels companies to substantiate the voluntary #green claims they make in business-to-consumer commercial practices by adhering to specific assessment criteria, including taking a life-cycle perspective. The proposal for a #directive to empower consumers for the #green transition aims to amend Directive 2011/83/EU on consumer rights and Directive 2005/29/EC on unfair business-to-consumer commercial practices. The objective of the #Green Claims #Directive (GCD) is to prevent deceptive or misleading advertising from impeding the #green transition. According to the GCD, only companies that have verified their claims as #environmentally friendly can gain commercial advantages from using #green claims.

Central Consumer Protection Authority (CCPA) may impose fines, bans on products that violate greenwashing norms. https://lnkd.in/ghuSWttY #mindsyncindia #wearemindsync #trending #mindsync #ccpa #greenwashing #ASCI #consumer #consumerprotection #misleadingclaim #law #regulatory

Consumer protection or an unwelcome next chapter in a cautionary tale? Canada’s new laws may be well-intended, but as the author mentions, they may slow or stall progress due to risk aversion. We’re allowing pressure to build on companies doing their best at the right changes for long-term environmental health and social equity while we allow others to source, manufacture, sell, and sponsor using environmentally damaging practices that negatively impact communities. Because we lack comparable accountability laws. Imagine if the script was flipped: how many sugary cereal manufacturers claiming to be part of a “healthy breakfast” would be shaking in their shoes? This feels over-reaching in an effort to protect against a few bad apples. Or dare I say, another government succombing to anti-ESG pressure? Thoughts? I see more risk than reward, but I’m open to being convinced otherwise. #sustainablemarketing #sustainability

Want to make green claims as a business, but worried about the risks of getting it wrong? 😬 This webinar is for you 👇 Join us as our CEO Abbie Morris talks through our brand new Green Claims Data Standard—the first public resource to outline what data is needed to back up your environmental claims and ensure you’re not greenwashing 🚩 📅 Thurs 20th Jun 🕐 1pm-2pm Reserve your spot here 👉 https://lnkd.in/eEx7jssR #greenwashing #greenclaims #sustainabilitycompliance

📣Greenwashing news: UK's Competition and Markets Authority has, today, published an open letter to the fashion retail sector to inform them of the outcomes of the CMA’s recent investigation into environmental claims in the sector, and to highlight the need for businesses to consider their obligations under consumer protection law. ✅It also highlights the need to align with the Green Claims Code (link below). The Code articulates how consumer protection law applies to environmental claims and provides a framework for businesses to make environmental claims that help consumers make informed choices. ✅The law seeks to protect consumers from misleading environmental claims, and in doing so also protects businesses from unfair competition. It enables businesses to communicate their genuine efforts to consumers transparently and to reap the commercial benefits. ✅Prudent firms should consider their own anti-greenwashing mitigation measures, and take action to minimise associated risk. 👇More here: https://lnkd.in/dB2bKzwi https://lnkd.in/dtX3tfmk Tom N. Emilie Jones Angelique Bret Becky Ellis Alistair McVan

“You’re going to see regulation and litigation increase drastically over the next few years,” argues Mark Burstein at our client Inspectorio. Learn more about the implications of new, anti-greenwashing legislation in this SupplyChainBrain deep dive. https://ow.ly/WqE550Ta7qj #greenwashing #supplychain #retailtech