ASOS PLC (LSE:ASC) said it will co-operate with the Competition and Markets Authority’s (CMA) investigation after the regulatory body said it will look into ‘green’ claims made by the fashion retailer.
Boohoo Group PLC (AIM:BOO) and Asda's George are also being investigated over concerns their green claims are misleading to customers.
CMA said its concerns include vague language that could potentially mislead customers into thinking clothing ranges are more environmentally sustainable than they are. It is also looking into whether the criteria for what is considered green are too low and whether items are included in the 'green' collections that do not meet the criteria.
ASOS said it is “committed to playing its part in making fashion more sustainable, including providing clear and accurate information about its products,” in a statement issued today.
In a separate statement, boohoo said it will "continue to work collaboratively with the CMA and is committed to providing its customers with accurate information on the products they buy".
“We’ll be scrutinising green claims from ASOS, Boohoo and George at Asda to see if they stack up. Should we find these companies are using misleading eco claims, we won’t hesitate to take enforcement action – through the courts if necessary,” said Sarah Cardell, interim chief executive of the CMA.