Asda, Asos and Boohoo face CMA probe into ‘green’ claims

The authority said it intends “to get to the bottom of whether the firms’ green claims are misleading customers” and warned it may put more retailers under scrutiny.

CMA interim chief executive Sarah Cardell warned: “Should we find these companies are using misleading eco claims, we won’t hesitate to take enforcement action – through the courts if necessary.

The regulator said it would assess “eco-friendly and sustainability claims made by Asos, Boohoo and George at Asda about their fashion products, including clothing, footwear and accessories”.

It said the initiative is part of an ongoing investigation into “potential greenwashing and follows concerns around the way the firms’ products are being marketed to customers as eco-friendly”.

The inquiry follows an investigation that identified concerns about “potentially misleading green claims” including some companies “creating the impression that their products were ‘sustainable’ or better for the environment – for example, by making broad claims about the use of recycled materials in new clothing – with little to no information about the basis for those claims or exactly which products they related to”.

The investigation will consider factors such as 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
• 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 firm’s wider practices

Cardell said: “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 three retailers affected today acknowledged the announcement by the CMA.

Asos said it “will cooperate with the investigation and is committed to playing its part in making fashion more sustainable, including providing clear and accurate information about its products”.

Boohoo said it “will continue to work collaboratively with the CMA and is committed to providing its customers with accurate information on the products they buy”.

Asda said: “We know how important it is that our customers can trust the claims we make about our products, which is why we ensure the statements we make can be supported by industry accreditations. We are ready and willing to answer any questions the CMA have about our George for Good range and welcome further work by the CMA to ensure the sustainability claims made by the fashion industry as a whole are robust and clear.”

• Sign up for our daily morning briefing to get the latest retail news and analysis