Greenwashing in the fast-moving consumer goods sector comes under the spotlight

Written By

victoria hobbs module
Victoria Hobbs

Partner
UK

I am a partner in our International Dispute Resolution Group in London where I specialise primarily in resolving disputes arising out of franchise, licence, distribution and agency agreements.

As litigation based on claims of greenwashing steadily increases, examination of consumer facing businesses and their ESG statements continues to rise. On 26 January, the UK’s Competition and Markets Authority (“CMA”) announced that it was expanding its scrutiny of greenwashing claims into the fast-moving consumer goods (“FMCG”) sector. The investigation will focus on essential products that consumers use on a daily basis and regularly repurchase, such as dishwashing items and toilet products of which 91% and 100%, respectively, market themselves as ‘green’ or ‘environmentally friendly’. The CMA will analyse claims made in store and online, including all forms of media (app, website). Particular areas of concern are broad, vague statements claiming that a product is ‘sustainable’ or ‘better’ for the environment; how recyclable a product is; and ranges being described as ‘sustainable’. The focus on ‘essential’ items suggests that the CMA is concerned that potential greenwashing of these items will impact large swathes of the consumer population, and they will be keen to ensure that any greenwashing is subject to appropriate scrutiny.

This expansion is not wholly surprising. ‘Eco-conscious’ purchases are becoming increasingly prevalent within the FMCG sector, with recent reports suggesting that 52% of shoppers say sustainability is…

Full article available on Disputes +

Latest insights

More Insights
Curiosity line blue background

Bird & Bird secures important judgment for Destin Trading Inc in The High Court

2 minutes Mar 27 2025

Read More

Changes to English arbitration law will require parties to reconsider the provisions of their arbitration agreements and will also provide a mechanism for the summary disposal of disputes

Mar 25 2025

Read More
Curiosity line teal background

UK: Online conspiracy theorist has defence struck out after four failed attempts at compliance

4 minutes Mar 24 2025

Read More