Asos, Boohoo and Asda commit to green claim changes after CMA probe

Asos, Boohoo and George at Asda have committed to change the way they display, describe, and promote their green credentials, after the Competition and Markets Authority (CMA) launched an investigation to scrutinise their fashion ‘green claims’. The CMA launched the review in July 2022 having identified concerns of possible greenwashing during its initial review of the fashion sector. It said this means customers can now expect to see clear and accurate green claims. The firms have each signed undertakings that commit 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 that 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. 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. Use of imagery: The firms must not use ‘natural’ imagery – such as green leaves – logos, or icons in a way that suggests 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. Accreditation schemes: Statements made by the companies about accreditation schemes and standards must not be misleading. Additionally, all three 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 (27 March 2024) 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. Sarah Cardell, chief executive at the CMA, said: “Following our action, the millions of people who shop with these well-known businesses can now have confidence in the green claims they see. This also marks a turning point for the industry. The commitments set a benchmark for how fashion retailers should be marketing their products, and we expect the sector as a whole – from high street to designer brands – to take note and review their own practices.” Asos added: “Asos has cooperated fully and openly with the CMA throughout its investigation, and we have voluntarily given an undertaking to the CMA. We welcome the CMA’s commitment to ensuring equal standards are applied across the fashion industry to create a level playing field in the best interests of consumers.” John Lyttle, CEO of Boohoo group plc, said: “I’m pleased that we have been able to reach an agreement with the CMA following its investigation into environmental claims. “Along with the other retailers who have been a part of this process, we have chosen to sign a set of undertakings that will provide some helpful clarity on how the CMAs green claims code operates in practice. We remain committed to working with others to find collective solutions to the shared challenges of sustainability within the fashion industry.” Asda has also been contacted for comment.