The Competition Markets Authority (CMA) has advised 17 renowned fashion brands to review their business practices in regard to their green claims. It has also released a compliance guide based on the existing Green Claims Code.
It should be noted that the CMA has not publicized the names of these 17 fashion brands, and has not launched any enforcement action either. Hayley Fletcher, the interim Senior Director of Consumer Protection, said the guide will enable fashion retailers to be hands-on with their obligations under the consumer law. She highlighted that there’s no excuse for using misleading green claims or eco-friendly claims.
These claims show that a product, service, brand or business is less harmful to the environment. Many businesses use such claims, through false or misleading statements, logos, colors, and images, to help market their brands or products. The CMA has warned a number of well-known brands to take a close look at their practices. “All fashion companies, from designer labels to budget-friendly brands or independent boutiques must be transparent and honest with their customers or risk enforcement action.”
The watchdog also reminded businesses that it will soon be empowered with increased power under the Digital Markets, Competition and Consumers Act (DMCCA) 2024. As such, CMA will be able to fine businesses up to 10 percent of their worldwide turnover, that is, if they break consumer law. The DMCC Act will come into effect in April 2025.
Also Read: Nike Jam – Nike Launches World’s First Shoe for Breaking, Boasts Style for Unique Performances
