Consumers are more aware than ever of the need to make ecologically beneficial choices because climate change is in everyone’s thoughts. The growing selection of environmentally friendly and sustainable items (often known as “green”) on the UK market strongly appeals to customers aware of their responsibility to slow climate change. The issue of “greenwashing,” a marketing technique that makes erroneous and deceptive claims that goods or services are ecologically benign, is getting worse.
Although the formal investigation by the Competition and Markets Authority (CMA) into whether ASOS, Boohoo, and Asda’s eco-friendly and sustainability claims constitute “greenwashing” may come as a surprise to some, it serves as a stark warning to businesses that greenwashing could potentially be a widespread issue that is likely to alarm consumers and undermine their confidence in brands that they once trusted. Making false “green” promises in a company’s advertising is a significant offense that can harm the company’s reputation and drive customers away.
In its first announcement of the probe, the CMA stated its goal was to “determine if the firms’ green claims are misinforming clients.” Concerns that consumers lack easy access to information about products, making it difficult to decide whether a product is ecologically friendly, prompted the CMA to launch its ongoing investigation into greenwashing.
Even though there are currently no laws in the UK that specifically address greenwashing, businesses run the risk of facing investigations from the Advertising Standards Agency (the UK’s self-regulatory advertising agency) or the CMA if a claim or advertisement is deemed to be misleading, which could include the use of trademarks if these contribute to the overall impression of an advertisement. Businesses should be aware that any inquiry won’t only focus on a single claim; the entire advertisement will be examined, including the language, graphics, and trademarks used.
Businesses should be aware that any marks used in their advertisements associated with their company name, brand name, names of their products or services, logos, or slogans are likely to give consumers information about their brand or product. This is especially true concerning trademarks. Businesses must know how customers perceive trademarks and logos to defend against consumer misinformation allegations. It is even more important for firms using trademarks that stand for environmental claims, including eco-friendliness and sustainability, to be able to back up those claims with reliable data to avoid complaints or inquiries that these trademarks are misleading consumers.
Assessing marketing strategy is essential to avoid accusations of “greenwashing,” which requires businesses to make sure that any use of green trademarks reflects the strategy and product offering. If a product may only be deemed green under specific circumstances, those circumstances must be obvious enough for the buyer to comprehend them. Businesses must be mindful of how visual presentations influence customer perceptions since even aesthetically pleasing product presentations, such as the color of the package, photographs, or logos, have the potential to deceive customers. Companies should adhere to the UK advertising regulations and guidance posted on the ASA website and the ASA’s Bespoke Copy Service for non-broadcast advertising when planning advertising campaigns. The CMA’s consumer marketing guidance, including its Green Claims Code Guidance, should be followed.It is anticipated that the findings of the CMA’s investigations would lead to tighter regulation and advice about the data and proof that must be provided before a company can assert that a good or service is environmentally friendly or sustainable. If some companies can’t meet the criteria for calling a product “green,” increased regulation will pressure companies to be more upfront about their environmental claims, which could result in a smaller economic market for such products. However, greater openness will ensure that consumers can choose items with greater knowledge and continue to have faith in the company. Businesses must abide by the rules to avoid legal issues and customer complaints about greenwashing.