The competition watchdog has urged British fashion businesses to provide accurate information on how environmentally friendly their clothing is after three fast fashion companies signed a new deal.
Competition and Markets Authority (CMA) Initiated Asda is investigating Boohoo, ASOS and George over concerns about the way their products are environmentally marketed.
Its preliminary review of the fashion industry has uncovered possible issues of “greenwashing” – making goods appear environmentally friendly when in fact they are not.
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What has changed?
But the companies have pledged to provide clear, prominent and transparent information about any environmental claims on their products, such as using terms like “organic” or “recycled” rather than vague terms like “ecological,” “responsible” or “sustainable.” Unclear terminology and no further explanation.
Brands will also avoid using natural imagery such as green leaves or logos to suggest non-existent environmental benefits.
Environmental information must be expressed in simple language, easy to read, and clearly visible to shoppers.
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Any statements about fabric composition must be equally clear and specific: the percentage of recycled or organic fibers must be clearly shown.
If a brand has a specific range of clothing that is designed to have a lower negative environmental impact than other products, the company must provide details of the minimum requirements for the items in that range.
For example, the minimum percentage of recycled materials should be specified.
Any environmental goals set by fashion businesses must be supported by a clear and verifiable strategy, with customers able to obtain more detailed information about the goals.
Information must be provided on what the goal is to be achieved, the date by which the goal will be achieved, and how the company will achieve the goal.
“A turning point for the industry”
These commitments “set the benchmark CMA chief executive Sarah Cardell said it builds on the marketing regulations already in place.
In an open letter, the CMA called on fashion businesses to familiarize themselves with the new initiatives.
Ms Caddell said: “This also marks a turning point for the industry… We hope the whole industry – from the high street to designer brands – will take notice and review its own practices.”
The CMA is said to be releasing more guidance for the fashion industry.
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