Fashion retailers ASOS PLC and Boohoo Group PLC will change the way environmental credentials are displayed, described and promoted on their clothing, Britain’s competition watchdog has announced.
Following a probe into the pair, alongside Asda’s George brand, the Competition and Markets Authority had raised concerns over greenwashing.
Changes should mean “millions of customers can expect to see clear and accurate green claims”, the authority added.
These will require firms to ensure all claims are accurate and not misleading, as well as being presented in plain language.
Statements made about materials in green ranges must be specific and clear, such as ‘organic’ or ‘recycled’, rather than ambiguous, such as ‘eco’, ‘responsible’, or ‘sustainable’.
The percentage of recycled or organic fibres must be clearly displayed and easy for customers to see, and a product cannot be called ‘recycled’ or ‘organic’ unless it meets certain criteria.
“Following our action, the millions of people who shop with these well-known businesses can now have confidence in the green claims they see,” CMA chief executive Sarah Cardell said.
“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.”
ASOS slipped 1.6% on the news. Boohoo climbed 0.6%.