UK Watchdog Probes Greenwashing Involving Asos, Boohoo, and Unilever

The Competition and Markets Authority (CMA) has incurred a staggering seven-figure bill and dedicated thousands of staff hours. The probe, which has ensnared industry giants like Asos, Boohoo, and Unilever, marks a watershed moment in the fight against deceptive environmental claims.

According to a recent Freedom of Information Act request by Financial News, the CMA has shelled out a hefty £1.3 million on its inquiries into greenwashing. These efforts have primarily focused on scrutinizing the eco-friendly assertions made by prominent fast-fashion chains Asos and Boohoo, as well as retail behemoth George at Asda. The investigation, initiated in 2022, aimed to assess the veracity of claims surrounding sustainable clothing lines.

In a significant expansion of its scope, the regulator turned its attention to Unilever, the Anglo-Dutch consumer goods titan, last December. The CMA’s concerns centered on allegations that Unilever may have been overstating the “natural” attributes of some of its cleaning products and toiletries, adding a new dimension to the ongoing investigation.

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The exhaustive nature of the CMA’s endeavor is underscored by the substantial manpower and resources allocated to the cause. Between September 2021 and January 15, 2024, CMA staff dedicated an estimated 29,471 hours to the greenwashing investigations. This monumental effort involved the deployment of 54 staff members, including part-time personnel, over the specified period.

The financial and human resources committed to these investigations have surpassed the resources expended on other high-profile cases. While the total cost of the greenwashing probe exceeds the £1.2 million allocated to the scrutiny of the $69 billion Microsoft-Activision deal—an attempt that had been thwarted by the CMA—it falls short of the extensive £3.7 million spent on the protracted bond-rigging investigation involving major banks.

The CMA’s pursuit of companies allegedly inflating their green credentials reflects a broader regulatory trend aimed at curbing misleading environmental claims. In September 2021, the regulator took the lead by introducing the Green Claims Code—a comprehensive set of guidelines designed to prevent firms from deceiving consumers about their environmental impact.

Source: FN London