Asos, Boohoo and George at Asda have agreed to clarify the way they display, describe and promote environmental credentials as the UK’s competition watchdog concludes its investigation into greenwashing.
The Competition and Markets Authority (CMA) said it had secured “landmark changes” following its probe into the fashion retailers following claims they were exaggerating their green credentials to entice consumers and environmental investor funds.
The three retailers have agreed to provide “clear and specific” product information, such as providing the percentage of recycled or organic fibres used, rather than using ambiguous terms like ‘eco’, ‘responsible’, or ‘sustainable’ without further explanation.
The brands must also set out the criteria and minimum requirements for its environmental collections so clothing is not marketed or labelled as part of an environmental range unless it meets all the relevant criteria.
CMA chief executive Sarah Cardell said the agreements “mark a turning point for the industry” and that “millions of people who shop with these well-known businesses can now have confidence in the green claims they see”.
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She said: “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.”
The CMA said Asos, Boohoo and Asda must regularly provide it with reports on how they are complying with the commitments and the steps they are taking to improve their internal processes.
Boohoo said it had found the investigation to be insightful and that it had “not intentionally misled customers”.
It said it was “committed to best-practice and providing customers with accurate information on the products they buy while delivering progress on its sustainability strategy”.
Group chief executive John Lyttle added: “I’m pleased that we have been able to reach an agreement with the CMA following its investigation into environmental claims.
“Along with the other retailers who have been a part of this process, we have chosen to sign a set of undertakings that will provide some helpful clarity on how the CMAs green claims code operates in practice.
“We remain committed to working with others to find collective solutions to the shared challenges of sustainability within the fashion industry.”
Asos said it welcomes “the CMA’s commitment to ensuring equal standards are applied across the fashion industry to create a level playing field in the best interests of consumers”.
An Asda spokesperson added: “We have proactively engaged with the CMA throughout this process and are pleased to have mutually agreed the voluntary undertakings.
“We support any measures aimed at improving consumers’ understanding of environmental claims and providing clear and consistent guidelines to the fashion industry as a whole regarding the future use of such claims.”
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