Daily Newsletter

25 September 2023

Daily Newsletter

25 September 2023

Eight ways EU greenwashing crackdown will impact fashion sector

The European Parliament and Council have reached a preliminary agreement on a set of regulations designed to clamp down on greenwashing and premature obsolescence of products, that could impact the textile and fashion sector's labelling and marketing practices.

Isatou Ndure September 22 2023

The agreement represents a significant update to the draft proposal of a list of prohibited commercial practices within the EU, published in March, addressing concerns related to greenwashing marketing tactics and striving to foster informed consumer choices.

A notable aspect of the EU's ban on greenwashing and enhancing consumer awareness of product durability is the emphasis on making guarantee information more conspicuous, with parliament rapporteur Biljana Borzan highlighting that “60% of European consumers are not even aware a legal guarantee comes with all products” or that they are accompanied by a minimum two-year guarantee.

The European Commission will be tasked with developing a new label to recognise producers who voluntarily extend their product guarantees at no extra cost.

Borzan explains: “A new extended guarantee label will show clearly which products last longer, so it will be easier to buy more durable products… and have also negotiated a strong stance on early obsolescence, we shouldn’t advertise products that fail too early.”

What fashion brands and retailers can no longer do under the new EU law

Under the new regulations, the following practices will be prohibited:

  1. Generic environmental claims, e.g., “environmentally friendly”, “natural”, “biodegradable”, “climate neutral” or “eco”, without proof of recognised excellent environmental performance relevant to the claim.
  2. Commercial communications about a good with a feature that limits its durability if information is available on the feature and its effects on the durability.
  3. Claims based on emissions offsetting schemes that suggest a product has a neutral, reduced, or positive impact on the environment.
  4. Sustainability labels lacking validation from approved certification schemes or established by public authorities.
  5. Durability claims regarding usage time or intensity under normal conditions, if not proven.
  6. Encouraging consumers to replace consumables, such as printer ink cartridges, prematurely.
  7. Presenting software updates as necessary even if they only enhance functionality features.
  8. Falsely presenting products as repairable when they are not.

Borzan states that in addition to this Parliament is “clearing the chaos” of environmental claims which will now have to be “substantiated, and claims based on emissions offsetting will be banned.”

A vote by Members of the European Parliament (MEPs) is anticipated to occur in November, for the provisional agreement to become law. Once the directive is enacted, member states will have a 24-month window to integrate the new regulations into their national laws.

When the European Commission’s Substantiating Green Claims Directive proposal was released, in March, the Sustainable Apparel Coalition (SAC) criticised it calling it a missed opportunity for the EU Commission to become a global frontrunner on sustainability and fulfilling ambitions set out in its Green Deal.

In March, the EU wanted to scold companies for greenwashing, but Just Style questioned whether its new rules would see brands give sustainability the cold shoulder.

Traditional AI is here to stay in the retail and apparel space

Initially, retailers used AI for basic tasks, including inventory management and demand forecasting. However, its usage has now become more prevalent in other aspects such as personalized marketing, customer service, pricing optimization, and supply chain management. With the rise of ecommerce and the increasing importance of data-driven decision-making, AI adoption in retail and apparel has accelerated. The industry now relies on AI to enhance the shopping experience, optimize business operations, and gain an overall competitive edge.

Newsletters by sectors

close

Sign up to the newsletter: In Brief

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Thank you for subscribing

View all newsletters from across the GlobalData Media network.

close