UK’s CMA to scrutinise Unilever’s environmental claims

The UK’s Competition and Markets Authority (CMA) is to scrutinise environmental claims made by the consumer goods group Unilever. The CMA said the move comes as part of the CMA’s wider investigation into greenwashing and follows concerns around how Unilever is marketing certain products, within some brands, to customers as environmentally friendly. The CMA explained that in January 2023, it expanded its work on environmental claims to include fast-moving consumer goods (FMCG). It said these are essential items that people use on a daily basis and are repurchased regularly, such as food and drink, cleaning products, toiletries, and personal care items. The CMA said its initial review “uncovered a range of concerning practices”, and, as part of that work, the CMA has launched a formal investigation into Unilever, which is known for brands including Cif, Dove, Comfort and Lynx. The CMA’s concerns regarding certain products include whether: certain statements and language used by Unilever appear vague and broad, and may mislead shoppers regarding the environmental impact of those products; claims about some ingredients are presented in a way that may exaggerate how ‘natural’ the product is, and so may create an inaccurate or misleading impression; claims focusing on a single aspect of a product may suggest it is environmentally friendly as a whole; certain green claims – particularly in relation to recyclability – may be unclear, as they fail to specify whether they relate to all or part of a product, or packaging; Unilever’s use of colours and imagery – such as green leaves – may create the overall impression that some products are more environmentally friendly than they actually are. Sarah Cardell, chief executive of the CMA, said: “Essentials like detergent, kitchen spray, and toiletries are the kinds of items you put in your supermarket basket every time you shop. More and more people are trying to do their bit to help protect the environment, but we’re worried many are being misled by so-called ‘green’ products that aren’t what they seem. So far, the evidence we’ve seen has raised concerns about how Unilever presents certain products as environmentally friendly. We’ll be drilling down into these claims to see if they measure up. If we find they’re greenwashing, we’ll take action to make sure shoppers are protected.” According to the CMA, the key piece of consumer protection legislation relevant to the CMA’s Green Claims Code, and to the Unilever investigation, is the Consumer Protection from Unfair Trading Regulations 2008 (CPRs). The CPRs contain a general prohibition against unfair commercial practices and specific prohibitions against misleading actions and misleading omissions. Nigel Brook, head of global resilience and climate change risk practice Leader at Clyde & Co, said: “We are likely to see more of this as regulators step up their scrutiny of companies’ ‘green’ claims. To a large extent, regulators and standards bodies such as the CMA in the UK have common cause with NGOs and activists who are bringing greenwashing claims in court. The volume of greenwashing litigation will continue to increase as we go into 2024, with a wide variety of sectors being impacted.” He added: “Upcoming litigation could take different forms. Currently, it is mostly about behaviour change, seeking to force businesses to withdraw an advertising campaign or claims about a product. However, in the next year, we might see claims based on allegedly misleading statements in listed companies’ filings. Businesses will need to become more rigorous about their environmental assertions to protect themselves against regulatory and reputational risk.”

UK’s CMA to scrutinise Unilever’s environmental claims

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