The Competition and Markets Authority (CMA) has given UK companies until the end of the year to sort out their environmental credentials.
Come January, it will start a full review of misleading green claims, both on and offline, in an attempt to crack down on greenwashing.
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It will prioritise sectors where consumers are most concerned about these practices, such as textiles and fashion, travel, transport and fast-moving consumer goods, which include food and beverages, beauty products and cleaning products.
The regulator has released a Green Claims Code based on existing consumer law, as part of a wider awareness campaign ahead of the COP26 in Glasgow in November.
“More people than ever are considering the environmental impact of a product before parting with their hard-earned money. We’re concerned that too many businesses are falsely taking credit for being green, while genuinely eco-friendly firms don’t get the recognition they deserve,” said CMA chief executive Andrea Coscelli.
“Any business that fails to comply with the law risks damaging its reputation with customers and could face action from the CMA.”