After a lengthy investigation by the UK’s Competition and Markets Authority (CMA), Asos, Boohoo and George at Asda have all signed formal agreements to stick to “accurate and clear” claims surrounding sustainability.
The decision follows a probe launched in July 2022, wherein CMA expressed concerns about the accuracy of the three fast fashion firms’ eco-friendly marketing language and their propensity for greenwashing.
At the time, the regulatory body said the statements and verbiage employed by the companies appeared “too broad and vague,” pointing to Asos’ “Responsible Edit” collection, Boohoo’s “Ready for the Future” range and Asda’s “George for Good” line as being potentially misleading to shoppers.
“The criteria used by some of these businesses to decide which products to include in these collections may be lower than customers might reasonably expect from their descriptions and overall presentation—for example, some products may contain as little as 20-percent recycled fabric,” CMA wrote.
Additionally, there was an overall lack of information provided to consumers about why certain products were included in the eco-edits, and a lack of clarity surrounding company accreditations and certifications, the group said.
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On Wednesday, the three UK-based firms formalized agreements with CMA to change the manner in which they describe and display products and promote their sustainability credentials. Asos, Boohoo and George at Asda each signed an undertaking saying they would adhere to several rules surrounding future green claims.
Moving forward, the companies must do their due diligence to ensure that all assertions about environmental stewardship are truthful and clearly and prominently displayed using transparent and visible language. Any statements related to fabrications should avoid nebulous terms like “eco,” “responsible,” or “sustainable,” and should instead contain verifiable descriptors like “organic” or “recycled.” Products described as such must also meet certain criteria set forth by CMA.
Any items contained in the retailers’ eco-edits must follow criteria that is clearly set out by the companies, with details of minimum requirements for inclusion. “For example, if products need to contain a certain percentage of recycled fibers to be included in the range, this should be made clear,” CMA said. “Products must not be marketed or labeled as part of an environmental range unless they meet all the relevant criteria.”
Additionally, the use of imagery like green leaves or other logos and icons that denote “natural” products should be curbed. Any product search filters employed on the firms’ websites must only show items that truly meet the requirements—for example, a search for “recycled” pants should only yield results made primarily from recycled content.
Claims about the companies’ environmental goals must be backed up by clear and accessible strategy information, including “what the target is aiming to achieve, the date by which it is expected to be met, and how the company in question will seek to achieve that target.” And when it comes to certifications and accreditations, firms must be transparent about whether those accolades apply just to particular products or to their company-wide practices.
Boohoo, Asos and George at Asda must routinely report to the government agency on their compliance with the new rules and their efforts to improve internal processes.
Upon the release of its findings, CMA also released an open letter to the fashion industry at large, calling upon retailers to review their claims and practices. The group said this week’s release should serve as a roadmap for the sector, helping businesses “stay on the right side of the law.” CMA also said it aims to build out its existing Green Claims code with additional insights tailored specifically to fashion businesses.
“Following our action, the millions of people who shop with these well-known businesses can now have confidence in the green claims they see,” CMA chief executive Sarah Cardell said Wednesday.
“This also marks a turning point for the industry,” she added. “The commitments set a benchmark for how fashion retailers should be marketing their products, and we expect the sector as a whole—from high street to designer brands—to take note and review their own practices.”
“We welcome the CMA’s commitment to ensuring equal standards are applied across the fashion industry to create a level playing field in the best interests of consumers,” Asos said in a statement following the release, noting that it has “cooperated fully and openly” with the investigation. According to reports, the e-tailer pulled its Responsible Edit from its website shortly after CMA began looking into its sustainability claims in 2022.
“Sharing clear and accurate information on the sustainability credentials of fashion products is crucial to empowering consumers to make fully informed choices,” the group added. The company said it is “focused on developing robust processes and systems that will enable us to provide clear and accurate information about the environmental impacts of our products and our business.”