CMA consults on environmental sustainability for business – and have…

cma-consults-on-environmental-sustainability-for-business-–-and-have…

CMA consults on environmental sustainability for business – and have…

CMA consults on environmental sustainability for business – and have launched a “green claims code”
2021-09-30 11:46:00
The Competition and Markets Authority (CMA) has launched a consultation (29th September) “to help inform its advice to government on how competition and consumer regimes can better support the UK’s Net Zero and sustainability goals.” It ends on 10th November.  The CMS has issued a ‘green claims code’ and says too many businesses falsely make environmental claims, to attract customers. The CMA held a consultation in May (ended 16th July 2021) on misleading environmental claims – ie. greenwashing. It has now told companies that they have until the end of 2021 to stop the practice.  It has issued new guidance for companies, to support global efforts to reduce carbon emissions.  In 2022, the CMA will launch a review of misleading green claims, with sectors including fashion, transport, and others. It began looking into green claims last year, finding that up to 40% could be misleading to consumers. At the same time, the Advertising Standards Authority is clamping down on companies that make misleading claims on climate impact.  .Tweet   The Green Claims Code, by the CMA https://greenclaims.campaign.gov.uk/ Green claims (sometimes called ‘environmental claims’ or ‘eco-friendly claims’) are claims that show how a product, service, brand or business provides a benefit or is less harmful to the environment. Many businesses use green claims to help market their products or services. They do this through a range of methods such as: statements, symbols, emblems, logos, graphics, colours and product brand names. Green claims MUST: 1. Be truthful and accurate: Businesses must live up to the claims they make about their products, services, brands and activities 2. Be clear and unambiguous: The meaning that a consumer is likely to take from a product’s messaging and the credentials of that product should match 3. Not omit or hide important information: Claims must not prevent someone from making an informed choice because of the information they leave out 4. Only make fair and meaningful comparisons: Any products compared should meet the same needs or be intended for the same purpose 5. Consider the full life cycle of the product: When making claims, businesses must consider the total impact of a product or service. Claims can be misleading where they don’t reflect the overall impact or where they focus on one aspect of it but not another 6. Be substantiated: Businesses should be able to back up their claims with robust, credible and up to date evidence. See more at  https://greenclaims.campaign.gov.uk/ The full guidance is at  https://www.gov.uk/government/publications/green-claims-code-making-environmental-claims/environmental-claims-on-goods-and-services . CMA: code introduced to force firms to prove green claims By Household Money 28.9.2021 The Green Claims Code The Competition and Markets Authority (CMA) has published the Green Claims Code, essentially a set of principles based on existing consumer law designed to help businesses to highlight their green credentials without misleading shoppers. The code makes clear that any green claims must: Be truthful and accurate; Be clear and unambiguous; Not omit or hide important information; Only make fair and meaningful comparisons; Consider the full life cycle of the product; Be substantiated. There’s a pretty clear message that comes through from all of these principles. Whenever a firm makes a claim about its environmental credentials or those of its products and services, then it needs to be able to back them up. The claims themselves have to be clear, and not open to interpretation, with any relevant information included. Evidently, the gauntlet is being thrown down to businesses of all kinds with this code ‒ you need to be able to back up your claims. It follows an investigation by the CMA last year, alongside other authorities, which suggested that as many as 40% of green claims made by firms were potentially misleading. https://www.lovemoney.com/news/116494/cma-code-introduced-to-force-firms-to-prove-green-claims CMA consults on environmental sustainability advice The CMA is calling for views to help inform its advice to government on how competition and consumer regimes can better support the UK’s Net Zero and sustainability goals. From: Competition and Markets Authority Published 29 September 2021  See all updates In July 2021, Kwasi Kwarteng, the Secretary of State for Business, Energy and Industrial Strategy (BEIS) wrote to the Competition and Markets Authority (CMA) asking it to provide advice to government on how the tools available under competition and consumer law can better support Net Zero and sustainability goals, including preparing for climate change. The Secretary of State asked: Whether, and if so how, current legal frameworks restrict or block initiatives that might support the UK’s Net Zero and sustainability goals? Are there changes to the UK’s competition and consumer law that would help to achieve the UK’s Net Zero and sustainability goals? Are there other opportunities within the UK’s competition and consumer policy toolbox that would support the UK’s Net Zero and sustainability goals, which the government should be considering? Before responding to the Secretary of State, the CMA is calling for views from all in

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