The Retailer Autumn Edition 2021

THE RE TA I L ER

3 4

GREEN CLAIMS CODE: GETTING ENVIRONMENTAL MARKETING RIGHT FOR CONSUMERS

Mike Coates Assistant Director Consumer Protection Competition and Markets Authority

T he CMA has issued guidance to help busi- nesses comply with consumer protection law when making environmental claims and to avoid misleading consumers

2. Make your claims clear and unambiguous Claims should be transparent and straightforward so your customers can easily understand them. They shouldn’t confuse consumers or give the impression that a product, service, brand or business is better for the environment than it really is. Put yourself in your customers’ shoes – would they understand the claim you are making? And would the meaning they take from it match the environmental impact of your What claims don’t say can also influence the decisions consumers make. These sorts of omissions can happen where claims focus on saying one thing but not another, or where they say nothing at all. Pay close atten - tion to the information on environmental impacts that your customers need to make decisions about and reflect that in the claims you make. 4. Comparative environmental claims must be fair and meaningful It’s important that consumers are not misled by the way comparative claims are made. Comparisons should be based on clear, up-to-date and objective information. Think about whether the product or service you’re comparing your prod- uct or service to is truly a substitute for your own. And if the product or service you’re comparing to is a previous version of your own, think about how long it is legitimate to make the claim. 5. Make sure you think about the full life cycle of your product/service The full life cycle of a product or service may be relevant when you’re making a claim. Claims can be based on a specific part of an advertised product’s life cycle, or part of a business’s activities, and you need to make clearwhich aspect they refer to. But if you are making a claim about a specific aspect of your environmental impact and ignoring some other important aspect of its life cycle which is damaging to the environment, you might still be giving consumers the impression that you are greener than you actually are. 6. Get your evidence first Most environmental claims are likely to be objective or factual claims that can be tested against scientific or other evidence. Businesses need to have evidence to back up and substantiate claims. Start with the evidence first. Once you know what evidence you have of the impact you make on the environment (or the impact you don’t make!), it will be easier to decide what you can legitimately tell your consumers about the good you are doing. product? If not, you risk misleading them. 3. Don’t omit or hide important information

We know that consumers are increasingly thinking about the environ- ment when they shop but many are skeptical about the claims made by businesses. Unfortunately, the greater focus on sustainable consumption means some businesses are rushing to tell consumers what they’re doing, without thinking about the bigger picture. Others are skipping the innovation altogether, focusing on making their marketing green, rather than their activities. As part of our strategic aim to support the transition to a low carbon economy, we are taking action against greenwashing, so consumers aren’t misled about the products or services they are buying. We are also keen to ensure that businesses making genuine investments to help the environment can gain a competitive edge by doing so. To support this, we have published newguidance on making environmen- tal claims on goods and services. Our “Green Claims Code” is designed to help all businesses navigate consumer protection rules concerning green claims and give consumers the information they need to make informed decisions about the environmental impact of their purchases. There are six principles to help businesses navigate the complexities of consumer protection law, based upon the requirements of the Consumer Protection from Unfair Trading Regulations 2008:

make.” ‘‘ 1. Make your claims truthful and accurate

What environmental claims don’t say can also influence the decisions consumers

For your customers to make informed choices about what they buy, environmental claims must be truthful and accurate. You need to ensure that your claims don’t give customers a false impression of your product, even if the words you write are factually correct. Labelling a product ‘green’ and decorating it with leaves, for example, is likely to mislead consumers, if that product has harmful environmental effects.

make them.” ‘‘

Businesses need to have evidence to back up and substantiate claims before they