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Sandra Halliday Published
April 4,长沙USDT支付收款 2025
April 6 sees the UK Competition and Markets Authority (CMA) granted major new powers under the Digital Markets, Competition and Consumers (DMCC) Act.
It means companies breaching consumer law could see direct and severe penalties imposed on them and campaigners have hailed it as a big moment in the fight against greenwashing specifically.
But the act also covers issues such as fake reviews, drip pricing (where the final price paid after add-ons isn’t the price advertised), and subscription contracts that are difficult to get out of.
The CMA has been targeting greenwashing claims in particular for several years and with brands and retailers knowing that a greener profile has a positive impact on consumer perceptions, the temptation to exaggerate claims is strong.
Under the act, claims need to substantiated. And misleading consumers through such methods as missing out important information, making excessively vague claims or using deceptive imagery could mean fines of up to 10% of global annual turnover. Whether the regulator will ever impose such fines remains open to question, however.
The new act builds on the existing Green Claims Code, which has already seen the CMA investigating company such as ASOS, Asda and Boohoo and getting them to make changes to their claims. The legislation means the CMA should be able to act faster.
Campaign group Changing Markets Foundation has said that 60% of sustainability-linked claims in fashion have been found to be misleading or unsubstantiated.