The Competition and Markets Authority (CMA) has
recently issued a consultation on its draft guidance for businesses
that market their products and services as being 'green' or
'eco-friendly' (Guidance). The Guidance
will mean that such companies will have to undergo greater scrutiny
when making claims about the 'green' credentials of its
products and services.
The Guidance comes on the back of a CMA investigation into
online marketing practices and the impact on consumers which found
that 40% of green claims made online could be misleading. Rather
than take enforcement action at this stage, the CMA has first
sought to issue clear guidance, following the consultation process,
on marketing the environmental impacts and claims of its goods and
services in a manner that also ensures that businesses understand
and comply with their existing obligations under consumer
protection law. This in turn will benefit consumers who rely on the
claims made via advertisements,