Asos, Boohoo and George promise 'clear and accurate' eco-claims

Three of the UK's biggest budget fashion brands will change the way they present the environmental impact of their clothes, following action by the competition regulator.

Asos, Boohoo and George at Asda have signed pledges to use only "accurate and clear" claims, the Competition and Markets Authority (CMA) said.

The firms said they remained committed to improving sustainability.

The move is part of a wider move by the CMA against "greenwashing".

Presenting products as more eco-friendly than they are, without providing further information, is not fair on customers and distorts competition, the regulator said.

The CMA also has household products, such as washing up liquid and soaps in its sights. At the end of last year it said it was investigating consumer goods giant Unilever over whether some of its environmental branding was misleading.

"What we're asking firms to do is put themselves in the shoes of their shoppers, and see whether that claim is understandable in its own right - is it accompanied by information that makes clear what that means?" said George Lusty interim executive director for consumer protection and markets at the CMA.

Many fashion brands market specific ranges as eco-friendly. Asos used to have a "Responsible edit" range, Boohoo sells clothes under "Ready for the Future", and Asda has "George for Good".

In future, the criteria for inclusion in these ranges must be "clearly set out and detail any minimum requirements", the CMA said.

"We really want firms that are investing in their products and their supply chains, who make them greener, to take the credit for that and they deserve to get a competitive edge and win sales," Mr Lusty said.

Often words like "eco" and "responsible" and "sustainable" were not accompanied by adequate information, he said.

Dr Magdalena Marchowska-Raza, a lecturer in digital marketing at Salford Business School said consumers were rightly sceptical about such eco-marketing claims and would need to see "proof of progress" to be convinced.

"Addressing this challenge requires more than just surface-level transparency. It calls for a fundamental shift in how companies approach their sustainability goals - not just setting them but actively demonstrating their commitment to achieving them through tangible, measurable actions," she said.

The CMA's investigation launched in July 2022 did not result in any legal action against the fashion firms. Instead the companies have made a range of voluntary commitments and will have to report back to the CMA on how they are complying with them.

Commitments include explaining what precise percentage of fibres used are recycled or organic and avoiding using imagery like green leaf logos to suggest a product is more environmentally friendly than it actually is.

Asos said the voluntary undertakings made by the three brands would "set a benchmark" for the industry.

"Sharing clear and accurate information on the sustainability credentials of fashion products is crucial to empowering consumers to make fully informed choices," Asos said.

Boohoo said it was pleased that the CMA's investigation had not resulted in any legal action against the firm, adding that the group had "not intentionally misled customers".

The firm's chief executive John Lyttle, said: "We remain committed to working with others to find collective solutions to the shared challenges of sustainability within the fashion industry."

An Asda spokesperson said the company was pleased to have mutually agreed the voluntary undertakings.

"We support any measures aimed at improving consumers' understanding of environmental claims," they said.

The CMA also published an open letter to the fashion industry urging other firms to review their own environmental claims and ensure they comply with consumer protection laws.

Geraint Lloyd-Taylor at law firm Lewis Silkin said the voluntary agreement would be a relief to the firms involved, whilst establishing clearer guidelines for the future.

"There are some broad lessons here for all companies in all sectors, such as the fact the CMA has singled out the use of leafy green images as being problematic, because they are likely to exaggerate the environmental benefits of the product or ranges being promoted," he said.

However the CMA was likely to be less accommodating in future if greenwashing rules were being breached, he added, highlighting new powers the CMA is about to get, allowing it to impose financial penalties of up to 10% of a firm's annual global turnover.