REG - Competition and Mkts - Unilever ‘green’ claims come under CMA microscope

UnileverAnnouncement

12/12/2023 08:15

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RNS Number : 4683W  Competition and Markets Authority  12 December 2023

Unilever's 'green' claims come under CMA microscope

The CMA will scrutinise 'green' claims made by Unilever about certain
household essential items, such as a number of cleaning products and
toiletries.

·    CMA to examine 'green' claims made by Unilever to make sure shoppers
aren't being misled

·    CMA is concerned that Unilever may be overstating how green certain
products are through the use of vague and broad claims, unclear statements
around recyclability, and 'natural' looking images and logos

·    CMA CEO: "We'll be drilling down into Unilever's claims to see if
they measure up"

The Competition and Markets Authority (CMA) will be scrutinising environmental
claims made by the consumer goods group Unilever, which is known for brands
including Cif, Dove, Comfort, and Lynx. The move comes as part of the CMA's
wider investigation into greenwashing
(https://www.gov.uk/government/collections/misleading-environmental-claims)
and follows concerns around how Unilever is marketing certain products, within
some brands, to customers as environmentally friendly.

In January this year, the CMA expanded its work on environmental claims to
include fast-moving consumer goods
(https://www.gov.uk/cma-cases/fast-moving-consumer-goods-fmcg) (FMCG). These
are essential items that people use on a daily basis and are repurchased
regularly, such as food and drink, cleaning products, toiletries, and personal
care items. Last year, shoppers paid out more than £140 billion in total on
FMCG products.

The CMA's initial review uncovered a range of concerning practices, and, as
part of that work, the CMA has today launched a formal investigation into
Unilever. Regarding certain products, the CMA's concerns include whether:

·    certain statements and language used by Unilever appear vague and
broad, and may mislead shoppers regarding the environmental impact of those
products.

·    claims about some ingredients are presented in a way that may
exaggerate how 'natural' the product is, and so may create an inaccurate or
misleading impression.

·    claims focusing on a single aspect of a product may suggest it is
environmentally friendly as a whole.

·    certain green claims - particularly in relation to recyclability -
may be unclear, as they fail to specify whether they relate to all or part of
a product, or packaging.

·    Unilever's use of colours and imagery - such as green leaves - may
create the overall impression that some products are more environmentally
friendly than they actually are.

Sarah Cardell, Chief Executive of the CMA, said:

"Essentials like detergent, kitchen spray, and toiletries are the kinds of
items you put in your supermarket basket every time you shop. More and more
people are trying to do their bit to help protect the environment, but we're
worried many are being misled by so-called 'green' products that aren't what
they seem.

"So far, the evidence we've seen has raised concerns about how Unilever
presents certain products as environmentally friendly. We'll be drilling down
into these claims to see if they measure up. If we find they're greenwashing,
we'll take action to make sure shoppers are protected."

The CMA has contacted Unilever and will set out its concerns in writing later
today. Following this, the CMA will use its information-gathering powers to
obtain further evidence to progress its investigation. How the case unfolds
will depend on what the evidence shows. Possible outcomes include securing
undertakings from Unilever that commit the firm to change the way it operates;
taking the company to court; or closing the case without further action.

The CMA has seen some positive changes in the FMCG sector since announcing its
compliance review, including amendments to and removal of some green claims
made by a number of suppliers. However, its review identified a range of
concerns and, while the CMA has not opened official investigations into other
companies at this point, its work is ongoing and new investigations may
follow.

More information can be found on the CMA's Fast Moving Consumer Goods
investigation page.
(https://www.gov.uk/cma-cases/fast-moving-consumer-goods-fmcg)

Notes to editors

1.   The key piece of consumer protection legislation relevant to the CMA's
Green Claims Code, and to today's announcement, is the Consumer Protection
from Unfair Trading Regulations 2008 (CPRs). The CPRs contain a general
prohibition against unfair commercial practices and specific prohibitions
against misleading actions and misleading omissions.

2.   The CMA is at the initial stage of its investigation. Accordingly, it
should not be assumed that the business under investigation has broken
consumer protection law.

3.   Fast-moving consumer goods (FMCG) are high-demand, essential products
used by people on a daily basis. They are often sold quickly and repurchased
regularly. They include items such as food (perishable and non-perishable) and
drink (alcoholic and non-alcoholic), cleaning products (washing up liquid,
dishwasher detergent/tablets, surface cleaners, toilet cleaner, laundry
detergent, fabric conditioner, etc), homecare products (toilet roll, kitchen
roll, handwash, etc), self-care products (toothpaste, shampoo and conditioner,
soap/bodywash etc), amongst other items.

4.   The following statistic is a CMA calculation: shoppers spent over £140
billion last year on household essentials, including food and drink, cleaning
products, and personal care.

5.   The CMA published its Green Claims Code
(https://greenclaims.campaign.gov.uk/) in September 2021. The code aims to
help businesses understand how to communicate their green credentials, while
avoiding the risk of misleading shoppers. Examples and case studies can be
found in the guidance, here
(https://www.gov.uk/government/publications/green-claims-code-making-environmental-claims/environmental-claims-on-goods-and-services)
.

6.   In January 2022, the CMA launched a compliance review of environmental
claims in the fashion retail sector
(https://www.gov.uk/cma-cases/asos-boohoo-and-asda-greenwashing-investigation#compliance-review)
, where an estimated £54 billion is spent by consumers annually. Following
this, it opened an investigation into environmental claims made by ASOS,
Boohoo and George at Asda
(https://www.gov.uk/government/news/asos-boohoo-and-asda-investigated-over-fashion-green-claims)
.

7.   Media enquiries should be directed to press@cma.gov.uk or 020 3738
6460.

8.   All enquiries from the general public should be directed to the CMA's
General Enquiries team on general.enquiries@cma.gov.uk or 020 3738 6000.

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