The Competition and Markets Authority (CMA) has launched a compliance guide for fashion retailers to help them adhere to consumer law.

The guide is based on the CMA’s Green Claims Code and aims to create a level playing field for all fashion businesses by ensuring customers who want to make sustainable purchases can trust the information provided by the brand.

As well as issuing the guide, the regulator said it has also advised 17 brands, which it declined to identify, to review their green claims and practices to avoid greenwashing.

The CMA said these brands have been issued with letters highlighting areas of concern regarding their green claims, such as the use of broad or general terms and whether certain products are being wrongly included in ‘eco’ ranges.

The letters also remind the fashion brands that the CMA will soon have strengthened consumer powers under the Digital Markets, Competition and Consumers Act 2024.

This will enable the CMA to fine businesses up to ten per cent of their worldwide turnover if they break consumer law, meaning businesses should take steps now to ensure their claims are accurate and do not mislead shoppers.

“This hands-on guide will allow fashion retailers to really get to grips with their obligations under consumer law – and also means there’s no excuse for using misleading green claims,” said Hayley Fletcher, interim senior director of consumer protection. “We’ve cautioned a number of well-known brands to take a close look at their practices, consider this guide, and make sure they’re not overstepping the mark when they promote their green credentials.

“All fashion companies – from designer labels to budget-friendly brands or independent boutiques – must be transparent and honest with their customers or risk enforcement action.”

In March this year, Asda, Boohoo and Asos signed agreements with the CMA, pledging to cut out alleged greenwashing practices.

The fashion retailers, which make over £4.4 billion annually from sales, 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.

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