CMA Launches Investigation into Fashion Sector’s Greenwashing Concerns

  • Asos, Boohoo, and Asda commit to changes in green claims after CMA investigation
  • CMA launches review on greenwashing concerns in the fashion sector
  • Firms must provide regular reports on compliance and improve internal processes
  • CMA issues open letter urging fashion retailers to review practices
  • Additional information to be added to Green Claims Code for fashion industry

Asos, Boohoo, and George at Asda have committed to changing the way they display, describe, and promote their green credentials after the Competition and Markets Authority (CMA) launched an investigation to scrutinize their fashion ‘green claims’. The CMA launched the review in July 2022 having identified concerns of possible greenwashing during its initial review of the fashion sector. As part of today’s update, the CMA has also issued an open letter to the sector, urging fashion retail businesses to review their claims and practices in light of the undertakings, which set a benchmark for the industry. To further help businesses stay on the right side of the law, the CMA is set to build on its current Green Claims Code with additional information tailored to the fashion sector. Asos, Boohoo, and Asda have each signed undertakings that commit them to an agreed set of rules around the use of green claims, including regularly providing the CMA with reports on how they are complying with the commitments and taking steps to improve their internal processes.

Factuality Level: 9
Factuality Justification: The article provides accurate and relevant information about the commitments made by Asos, Boohoo, and George at Asda to improve their green claims. It includes quotes from the CMA and the companies involved, and discusses the impact on the fashion industry as a whole.
Noise Level: 3
Noise Justification: The article provides relevant information about three major fashion retailers committing to change their green claims practices following an investigation by the Competition and Markets Authority (CMA). It highlights the importance of clear and accurate green claims for consumers and sets a benchmark for the industry. The article also includes statements from Asos and Boohoo, showing cooperation with the CMA’s investigation. However, it lacks in-depth analysis or exploration of the consequences of these decisions on those who bear the risks or scientific rigor.
Financial Relevance: Yes
Financial Markets Impacted: Asos, Boohoo and George at Asda
Financial Rating Justification: The article discusses commitments made by these companies to change their green claims practices following an investigation by the Competition and Markets Authority (CMA), which could impact their financial performance and reputation. This may affect their sales and market position.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article. The article discusses a regulatory action taken by the Competition and Markets Authority (CMA) against three fashion retailers for potential greenwashing, which led to changes in their marketing practices.

Reported publicly: www.retailsector.co.uk