Making green claims: Getting it right, across the supply chain

Question 1

Introduction

Accepted Answer

The Competition and Markets Authority (CMA) is an independent non-ministerial government department and is the UK’s primary competition and consumer authority. Our purpose is to promote competition and protect consumers with a clear end goal – to drive economic growth and improve household prosperity. We do so by focusing on our strategic objectives, which include:

championing consumers – protecting people from harm and helping businesses do the right thing by their customers
fostering a UK regulatory landscape that attracts investment and instils business confidence, by ensuring the competition and consumer protection regimes contribute to the UK’s reputation as a great place to do business and invest

Consumers are increasingly looking for products and services which minimise harm to, or have a positive effect on, the environment. Businesses are responding to that demand and giving their customers more information about their environmental credentials, from how they source ingredients and materials, to how products can be disposed of to reduce their overall environmental impact. This is a positive development - with the right information, consumers make informed choices and build consumer confidence. Businesses can benefit from their investments in genuine environmental improvements, thereby encouraging other businesses to invest and compete on their ‘green’ credentials, enabling innovation and growth and creating a wider range of options for consumers.

The CMA has already provided support to help fair dealing businesses comply with consumer protection law when making environmental claims by producing the Green Claims Code, which applies to businesses across the economy, and a fashion retail sector compliance document for businesses in that sector.^{[footnote 1]}

The consumer protection regime is a key part of building consumer confidence and economic growth. It safeguards consumers from harmful and unfair treatment and protects fair dealing businesses. Businesses have the commercial freedom to make environmental claims and promote their credentials as they wish, provided that claims are clear, accurate and do not mislead consumers. If businesses make false or misleading claims, not only does that distort consumers’ decision making, but can also lead to those businesses gaining an unfair competitive advantage.

The CMA’s approach to consumer protection document sets out our strategy for applying the consumer protection regime, including what businesses and other stakeholders can expect from us.

What this document covers

We have produced this document in response to requests from stakeholders in a variety of sectors, seeking further clarity to supplement the Green Claims Code on supply chain liability in relation to environmental claims and what this means in practice for different businesses.

Supply chains across the economy can be complex, and businesses have told us that many parties are involved - from supplying ingredients, materials and components, through to testing, analytics, distribution and retailing to consumers. As a result, some stakeholders have sought greater clarity on their responsibility for environmental claims, particularly where another party may hold important information needed to substantiate claims.

We want to support businesses to get it right and comply with consumer protection law when making environmental claims. If they get it right, that’s good for consumers, fair dealing businesses and the wider economy. This document is part of our continuing work to provide that support.

The Advertising Standards Authority is the UK’s independent advertising regulator and administers the requirements for advertising in the UK Code of Non-Broadcast Advertising and Direct and Promotional Marketing and the UK Code of Broadcast Advertising (the CAP and BCAP Codes). The ASA has also produced guidance on environmental claims. ^{[footnote 2]}

This document provides further guidance to businesses on their responsibilities under consumer protection law when making environmental claims, including our expectations for compliance, and should be read in conjunction with the CMA’s Green Claims Code, which is consistent with the requirements of the CAP and BCAP Codes.

This document is for all businesses in the supply chain – for example whether a retailer, brand, or manufacturer.^{[footnote 3]}

This document is limited to the CMA’s use of its consumer powers in relation to environmental claims. It does not bind or constrain other consumer protection enforcers. Other enforcers may, and often do, have regard to the CMA’s position as set out in published documents.

Question 2

How consumer law applies across the supply chain

Accepted Answer

The law on unfair commercial practices concerns the practices of traders (businesses) relating to the promotion or supply of products to a consumer.^{[footnote 4]} This includes matters relating to advertising. The law applies to businesses acting on their own behalf, as well as other businesses acting for them, such as sub-contractors or other associates. General guidance on unfair commercial practices is set out in Unfair commercial practices: CMA207.

The process of advertising and supplying products to consumers may involve a number of businesses. Consumer protection law covers claims that can affect consumers’ decisions about products, made by retailers and brands, as well as other businesses in the supply chain such as manufacturers. Further details on who the law applies to are set out in the Green Claims Code.^{[footnote 5]} While we recognise that supply chains can be complex and can vary significantly across businesses and across sectors, every business must ensure that they comply with consumer law and has an important part to play in ensuring consumers get clear, honest and accurate information on green claims.

We recognise that businesses may need to work together to pursue environmental sustainability initiatives. To help ensure compliance with competition law in this context, the CMA has published the Green Agreements Guidance (CMA 185) to support businesses operating at the same level of a supply chain.

A diagram showing the stages of the product journey. The raw material goes to the supplier, who adds an environmental claim. The next stages are, manufacturer, distributor and brand and retailer. The environmental claim remains on the product throughout all of these stages. The product journey ends with the consumer.

What does ‘making’ an environmental claim involve?

‘Making’ an environmental claim includes what businesses say, how they present it and what they don’t say.

For example:

what a business says on its website, marketing or branding about the environmental credentials of a product
what a business says on a product or on packaging about the environmental credentials of a product
how a business presents information, such as the use of ‘green’ logos or imagery
what a business doesn’t say, such as omitting or hiding important information that a consumer needs to take an informed decision (for example in relation to the disposal of the product for the environmental benefit to be realised)

A business may be deemed to be repeating an environmental claim where it stocks a product. For example, if a manufacturer labels a product as having an environmentally friendly characteristic, which is false or misleading, the manufacturer and the retailer may be liable for engaging in an unfair commercial practice.

Liability across the supply chain

Businesses across the supply chain therefore need to take steps to ensure that any environmental claims they make (whether directly, indirectly or by passing information from others on to consumers) are accurate and not misleading.

Claims need to be verified and backed up by evidence

Depending on the particular circumstances, different businesses in the supply chain may hold the information required to verify claims that are made to consumers. We appreciate that it can sometimes be difficult to obtain the relevant information from other businesses. However, it is important that businesses making environmental claims take the necessary steps to ensure that claims are accurate and non-misleading. For example, in many cases, contractual arrangements may require certain assurances be given.^{[footnote 6]} If you are unable to obtain the information needed to satisfy yourself of the accuracy of a claim, you should consider whether you should make the claim differently, in a way you can verify.

Where another business is the source of the claim and will not or cannot verify it, then you may need to consider your trading relationship with that business for that product, given the legal risk this may open up for you. The checklist at the end of this document provides key points for businesses to consider when working with others in the supply chain to help ensure that environmental claims made to consumers are accurate and not misleading.

Claims may be misleading even if this is not intended

Certain breaches of consumer protection law are criminal offences as well as civil infringements. Where the CMA is pursuing civil enforcement action,^{[footnote 7]} the law is clear that intention of any wrongdoing is not relevant and an ‘innocent’ or unwitting breach is still a breach of the law. Similarly, under the law, it is not a defence in civil actions for a business to argue that it took all reasonable precautions and exercised all due diligence to avoid making the misleading environmental claim.

However, as we go on to explain in the next section, the CMA will take into consideration several factors when deciding whether to prioritise a case for enforcement and the appropriate target(s) of a case. Genuine attempts to comply with the law may also be considered a mitigating factor when assessing penalties see paragraph 26, under the heading ‘The CMA’s approach to consumer law enforcement’.

Question 3

The CMA’s approach to consumer law enforcement

Accepted Answer

Under the Digital Markets, Competition and Consumers Act 2024 (DMCC Act), which came into effect in April 2025, the CMA can decide whether consumer protection laws have been infringed, give directions on a business’ conduct and order redress to be paid to affected consumers. The CMA can also issue fines to businesses that fail to comply, without having to take businesses to court.^{[footnote 8]}

The CMA’s approach to consumer protection document sets out how we will use our DMCC Act powers and highlights priority areas of focus for enforcement action, including focusing early action on more egregious practices. The CMA’s ‘4Ps’ framework of how we work in terms of pace, proportionality, predictability and process is embedded into our consumer protection approach.

The CMA will decide its enforcement approach in any particular case in the light of all the facts before it, its current overall priorities, resources and powers. Enforcement action is generally prioritised according to the CMA’s published Prioritisation Principles and relevant factors. Factors the CMA will take into account include, for example:

the strategic significance of taking action in respect of the concern and the likelihood of a successful outcome
how substantial is the likely positive impact of the CMA’s intervention on UK consumers, businesses and for the economy. We would consider both the direct and wider, indirect impact of CMA action. For example, the direct impact on consumers resulting from changes to business practices, as well as the indirect effect of deterring poor practices or driving up compliance in the market and helping to create a level playing field for fair-dealing businesses
who in the supply chain is liable for any breaches under the law. We would consider which businesses engaged in the commercial practice, including who made the claim about the product

When investigating or planning to investigate concerns over whether environmental claims are misleading, we will consider carefully which is the appropriate business or businesses to investigate, for example, one or more of the retailer, brand, manufacturer, or other business in the supply chain. It may be necessary to seek information from multiple sources, including businesses in the supply chain, to inform our decision-making.

What does this mean in practice for businesses?

In line with our approach to consumer protection document, the CMA is likely to target conduct which is more harmful to consumers. Things that businesses should consider include:

the CMA is more likely to view practices as particularly egregious where:
- businesses should already be clear about their consumer law obligations. This may be for example, where the CMA or another enforcer has published guidance (such as the Green Claims Code), or where there has been previous CMA action or clear decisions from bodies such as the ASA. These may have relevance to your business even if the guidance or decision refers to another sector
- businesses do not have appropriate internal processes in place to help ensure their environmental claims are accurate and do not mislead consumers (or fail to properly follow such processes where they are in place). Not having, or not following, internal systems in place for verifying and for making environmental claims increases the likelihood of misleading claims being made. The CMA’s fashion retail sector compliance document (section 3), provides some guidance on internal processes and can have broader relevance. The checklist at the end of this document also provides points for businesses to consider
the CMA may also look at whether any enhanced consumer measures are appropriate, and if so, which business or businesses would be best placed to implement these. This may include measures to remedy the issue, prevent it from happening again and where appropriate, provide consumers with redress and/or the information they may need^{[footnote 9]}
we note that when calculating a fine for an infringement of consumer protection law, the CMA will take into account factors including the seriousness of the infringement (in particular the level of harm and the level of culpability of the business or businesses), the size of the business and any mitigating or aggravating circumstances. Depending on the facts of a particular case, proactive steps taken to cease and correct infringing conduct prior to the launch of a CMA investigation may be regarded as a mitigating factor^{[footnote 10]}

Question 4

Illustrative examples

Accepted Answer

The examples below illustrate how the factors set out above could apply in practice to environmental claims. The examples are fictional. Although each example focuses on one issue, multiple factors may be applicable to each scenario.

The examples assume a breach of consumer protection law has been established and legal thresholds met. In each case the relevant trader(s) is therefore deemed to be engaging in an unfair commercial practice.

In each example, more than one business may be liable. As noted above, issues such as culpability and mitigating or aggravating factors are taken into account for the purposes of calculating any fine for a breach of the law.

The examples include references to the fashion retail sector compliance document where appropriate. While that compliance document is relevant for businesses who make claims about clothing, footwear, fashion accessories and related services, it is likely to be a good starting point and may be helpful for businesses in other sectors.

Example 1: A retailer selling its own brand of products

An illustrative example of a website showing 3 different tents for sale. The banner text suggests that all 3 tents are made entirely from recycled polyester.

Situation

A camping and outdoor activities retailer sells its own brand products.

Its products are produced in its own factories, using materials that are globally sourced from its suppliers.

The retailer/manufacturer falsely claims that all its tents are ‘made from recycled polyester’. In fact, not all tents stocked by the retailer contain recycled content and none contain above 50% recycled content.

The retailer made the claim on the basis that one batch of materials from one of its fabric suppliers were delivered with a statement from that supplier that the material is ‘greener as it is recycled’ but without any accompanying certification.

The retailer doesn’t have a policy on making environmental claims about its own-brand products, nor a process for verifying them. Staff have not been trained on how to make accurate environmental claims.

Commentary

Businesses should be able to back up environmental claims with evidence. In this example, the CMA would be more likely to take action against the retailer/manufacturer who made the misleading environmental claim and who does not have internal processes in place for verifying and making claims, rather than the supplier of the materials.

What we expect

As set out in the fashion retail sector compliance document, we expect businesses to have appropriate internal processes in place to help ensure that their environmental claims are accurate and do not mislead consumers. The checklist below provides further details of appropriate internal processes – we recognise that the details of these may vary across sectors.

(Paragraph 3.1 of the fashion retail sector compliance document outlines what the internal processes should include).

Example 2: An online retailer selling third-party branded products

An illustrative example of a website selling trainers. The text suggests that the entire trainers are 100% recycled.

Situation

An online retailer has an arrangement with a well-known sports brand to sell its branded trainers. The brand supplies a large number of other retailers and prohibits the editing of product information.

The product information for the trainers is automatically uploaded onto the retailer’s website from the brand’s online product information system. The products are titled ‘100% recycled trainers’.

The retailer has an established relationship with the brand, the retailer performs regular random checks to ensure that product descriptions are accurate and requests evidence for a selection of claims. The retailer also asks the brand to complete an annual declaration that all product claims made are accurate and that appropriate substantiation is held by the brand.

A customer complaint reveals that upon receiving a new style of trainers, there is information inside the box which states that only the sole element of the trainers is recycled. The retailer approaches the brand, who refuse to edit the product description. The retailer continues to sell the product as they feel they have to maintain their position as a supplier of the well-known brand, in order to compete in retail.

Commentary

Both the retailer and the brand have a responsibility to ensure that the claim is accurate and not misleading. In this example, the CMA may be more likely to prioritise action against the brand as there is potential for widespread harm from the brand’s commercial practices beyond the particular retailer and the brand is better positioned to remedy the issue. For example, the brand could change the description of the trainers so the title is accurate and specify in the product copy that only the sole is recycled. By doing so, all other retailers supplied by the brand would also have the correct information.

What we expect

It is important that brands and suppliers who make claims ensure they are accurate and not misleading, and hold appropriate evidence to support the claims they make. They should ideally make this available to their retailers, or provide some other means by which the retailer can verify claims they are being asked, or required, to repeat.

(Paragraph 3.3 of the fashion retail sector compliance document explains the type of evidence suppliers can provide retailers with).

Example 3: A supermarket chain offering branded products in a range

An illustrative example of a supermarket website showing a body wash for sale. The product description suggests that the product is part of an Environmental Range in which all products contain organic content of 60% or more.

Situation

A large supermarket chain orders branded body wash which includes one ingredient that is certified organic. This organic content constitutes 10% of the body wash’s ingredients. The packaging is made from 100% certified recycled materials.

The supermarket decides that the body wash will be marketed as part of the supermarket’s ‘environmental’ range. The supermarket notifies the brand but does not provide any further details.

The range description explains that all products in the range have an organic content that is 60% or higher.

Commentary

Both the retailer and the brand have a responsibility to ensure that the claim is not misleading. In this example, the CMA is likely to focus on the commercial practices of the retailer as the retailer has marketed the product with misleading environmental credentials and is best placed to remedy the situation. For example, the retailer could remove the body wash from the range and replace it with a product that meets the range criteria. The retailer could also offer the body wash in an alternative environmental range which expressly groups together products with recycled packaging.

What we expect

If as a retailer you choose to group products together in a category or range, you should work with brands or suppliers to verify the product’s environmental credentials to avoid giving the impression that the products are better for the environment than they really are.

Brands should be careful and check how retailers are marketing their products.

(The fashion retail sector compliance document (paragraphs 2.2 to 2.28) provides guidance on marketing product ranges).

Example 4: A supplier supplying multiple retailers

An illustrative example of a website selling 2 beds. One is made of wood and the other is made of ‘sustainably sourced’ wood. The sustainably sourced wooden bed costs significantly more.

Situation

A supplier produces a bed frame which is marketed and labelled by the supplier as being made from ‘sustainably sourced’ timber. The supplier also produces a lower priced bed frame of the same style, without the marketing claim, made from unverified timber. The supplier offers both bed frames in the alternative, through various sales channels, so as to provide consumers with a choice.

Recent changes in the supply chain for the sustainably sourced bed frames mean that there are shortages in sustainably sourced timber and the supplier will be unable to obtain it for the next year. Due to the popularity of these bed frames, the supplier decides to continue making the claim, manufacturing the frames with unverified wood and continuing to charge the higher price. The supplier does not advise retailers selling the frame about the change in the timber source. Retailers continue to sell the frame with the claim that it is made from sustainably sourced timber, along with offering the cheaper non-sustainably sourced option.

Commentary

Both retailers and the supplier have a responsibility to ensure that the claim is not misleading. The CMA may consider the commercial practices of the supplier who continued to make a false claim and may also look at the processes the retailer had in place to verify claims. In this example, the CMA may be more likely to consider that the strongest evidence of infringement is against the supplier, and the supplier is best placed to implement changes to correct provenance claims. The CMA may consider that the supplier is also best placed to provide any redress to consumers. This may be because it is more effective for the supplier to provide redress to all customers who have purchased the product, from different stockists. Retailers may be asked to assist with this, for example, by providing customer details, or facilitating the redress payments to consumers.

What we expect

The information that businesses use to base their claims on should be regularly reviewed. Suppliers making claims should ensure that claims are amended if no longer accurate, and that retailers are kept informed. Retailers should have processes and contractual arrangements in place to regularly check that claims remain correct.

(Paragraph 3.125 of the Green Claims Code explains that evidence to support claims should be up to date).

Example 5: A bricks and mortar retailer selling a manufacturer’s product

An illustrative example of a dishcloth that is labelled as ‘compostable’.

Situation

A retailer running a small bricks and mortar store orders dish cloths marked as ‘compostable’ from a large scale manufacturer. The dish cloth labels are created and attached by the manufacturer.

However, the cloths can only be composted if they are returned to certain large stores, where they are then sent for specialist processing. This is not made clear to consumers, by either the retailer or the manufacturer.

Commentary

Both the retailer and the manufacturer have a responsibility to ensure that the claim is not misleading. The CMA may be more likely to prioritise action against the manufacturer, who made the claim on the product. The CMA may also consider that the manufacturer is best placed to inform consumers of how to dispose of the cloths in order to achieve the environmental benefit claimed. This could be through clear and prominent instructions on the packaging. Detailed supplementary information such as store locations, could be provided online and accessed via a QR code.

What we expect

Businesses, including brands and suppliers, should consider what information a consumer needs. Any important information a consumer needs to understand a claim, and make an informed decision, should be provided close to the claim, for example shown on the product label or on the same side of any tag attached to the item, or next to a claim on a poster or website. Customers should not have to take further action such as scanning a QR code, following a hyperlink or expanding a drop-down list to access important information needed to understand the claim. In the example above, it is important information that the item is compostable by returning for specialist processing, rather than being compostable at home. Supporting or further information can however be provided via a QR code, hyperlink or online drop-down list.

To the extent possible, retailers should carefully check claims made on products. Retailers should have arrangements in place with brands and suppliers to satisfy themselves that they are correct and complete, and request any further information needed by the consumer to understand the claim.

(Paragraphs 2.2 to 2.6 of the fashion retail sector compliance document explains what a business should consider when presenting information to consumers. This advice applies across sectors. The document also includes advice on where different types of information should be provided).

Question 5

Checklist

Accepted Answer

The following checklist outlines key points for businesses to consider when making environmental claims. As stated in the Green Claims Code, businesses should be able to back up their claims with robust, credible, relevant and up-to-date evidence that supports them. Businesses in the supply chain may need to work together to ensure that claims made to consumers are accurate and not misleading. This includes those that hold the evidence needed to support a claim sharing it with others in the chain who may want or need to communicate the claim to others and eventually consumers. The checklist is largely based on learnings from retail fashion sector supply chains, but where we consider there may be broader application. The checklist should be read in conjunction with the rest of this document, the Green Claims Code, and fashion retail sector compliance document, and may not apply in exactly the same way to every sector.

Checklist for retailers:

You should put in place processes to ensure that robust, credible and up-to-date evidence is obtained. This may include:

seeking evidence from suppliers ahead of advertising or selling products to consumers. This evidence should be robust, credible and up to date. The type of evidence may vary according to the claim and the type of product, service or sector. For example in the fashion sector, this evidence often includes final scope certificates and final transaction certificates, which verify the fabric composition
asking suppliers and brands to provide confirmation, such as via a self-assessment questionnaire, that they hold the relevant proof or a declaration that claims are accurate. This may be particularly relevant in situations where it is not always possible to obtain evidence for every product (for example due to timing factors, or as the available evidence would reveal confidential information)
reviewing claims and documentation on a regular basis. For example, conducting regular checks where appropriate to ensure that product information is accurate. This may include performing random checks of product descriptions and requesting copies of evidence to support a selection of claims from suppliers
putting additional measures in place when working with new suppliers. This includes checking whether any change in supplier impacts any claims being made
seeking updates and maintaining regular contact with suppliers to check for any changes in the supply chain that may affect the accuracy of a claim. Such changes should be carefully considered to assess any impact on making environmental claims
considering if environmental claims made about products provided by suppliers, including on labelling, are clear and whether additional information is required from the supplier for the consumer to understand the claim

Checklist for brands selling through third party retailers:

You should:

ensure that any claims the brand makes are accurate and verified, with up-to-date, credible evidence
provide retailers with appropriate assurance that claims the brand makes are correct, including (where appropriate) sharing underlying evidence with retailers and explaining the basis on which the brand’s environmental claims are made. An example would be providing evidence which verifies the product composition. If it is not possible for the brand to provide a copy of the evidence at the time the claim is being made, for example due to timing factors, an alternative may be to provide a declaration that product information is accurate

Checklist for suppliers and manufacturers:

You should provide retailer and brands with the assurance they need so that they can confidently make accurate claims. This may include:

ensuring that you obtain and provide, as appropriate, relevant evidence to support claims and that you retain proper records on aspects such as product composition, testing and provenance
ensuring that systems are in place for verifying environmental claims you make, that you facilitate supply chain transparency and provide updates as necessary (for example, if there is a relevant change to the raw materials used)
considering providing assurance in a different way, if product information is confidential. For example, rather than disclosing a manufacturing method or detailed composition, providing evidence of an independent verification process
avoiding making casual claims which may be taken for a verifiable claim

Making green claims: Getting it right, across the supply chain