CMA reaches agreement with Asda, Boohoo and Asos over green claims

Asda, Boohoo and Asos have signed agreements with the Competition and Markets Authority (CMA), pledging to cut out alleged greenwashing practices.

The fashion retailers, which make over £4.4 billion annually from sales, have agreed to change the way they display, describe and promote their green credentials meaning that customers can now expect to see clear and accurate green claims.

The agreement covers a number of issues including the use of green imagery, environmental targets and accreditation schemes.

The retailers must also ensure all green claims are accurate and not misleading. The CMA said key information must be clear and prominent, meaning it must be expressed in plain language, easy to read, and clearly visible to shoppers.

All three firms must also regularly provide the CMA with reports on how they are complying with the commitments they signed – as well as taking steps to improve their internal processes.

The agreement follows an investigation which the CMA launched in July 2022 having identified concerns of possible greenwashing during its initial review of the fashion sector.

Additionally, the CMA has issued an open letter to the fashion industry advising all businesses to review their claims in light of the agreement, which the CMA said has set a benchmark for the industry.

“Following our action, the millions of people who shop with these well-known businesses can now have confidence in the green claims they see,” said Sarah Cardell, chief executive at the CMA.

“This also marks a turning point for the industry. The commitments set a benchmark for how fashion retailers should be marketing their products, and we expect the sector as a whole – from high street to designer brands – to take note and review their own practices.”



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