The advice also reminds brands that the CMA will soon have increased power under the Digital Markets, Competition and Consumers Act 2024. Credit: Shutterstock

Alongside the guide, the CMA has advised 17 fashion brands to review their business practices. The areas of concern highlighted include the use of “broad or general terms” and whether some products are being wrongly included in sustainable ranges.

The CMA said it had not launched enforcement action against the 17 fashion brands “in this instance” and would not be naming them.

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However, it did share some of the common concerns highlighted in the letters to brands which include:

  • the use of broad terms, such as ‘sustainable’, which are unclear and so more likely to mislead consumers
  • unclear or otherwise potentially misleading claims about a product’s composition
  • labelling products as ‘recycled’, thereby suggesting that the entire product is made of recycled materials when this does not appear to be the case
  • potentially misleading claims about affiliations
  • grouping products into collections or ranges without clearly stating the criteria for including products in those collections or ranges

The guidance is based on the CMA’s Green Claims Code, which aims to ensure consumers can trust sustainable claims made by brands. It also includes illustrated examples to give context to the rules, aiming to make it easier for businesses to apply the guidance to their own claims.

The letters also reminded brands that the CMA will soon have increased power under the Digital Markets, Competition and Consumers Act 2024, which will allow it to fine businesses up to 10% of their worldwide turnover if they break consumer law.

Hayley Fletcher, interim senior director of consumer protection, said in a statement: “This hands-on guide will allow fashion retailers to really get to grips with their obligations under consumer law – and also means there’s no excuse for using misleading green claims. 

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“We’ve cautioned a number of well-known brands to take a close look at their practices, consider this guide, and make sure they’re not overstepping the mark when they promote their green credentials.

“All fashion companies – from designer labels to budget-friendly brands or independent boutiques – must be transparent and honest with their customers or risk enforcement action.”

The new guidance follows recent action from the CMA relating to green claims ins fashion, including securing a pledge from Asos, Boohoo and George at Asda that the brands will only make “clear and accurate” claims going forward.