CMA drops year-long greenwashing investigation of Unilever following undisclosed claim changes

The UK’s Competition and Markets Authority (CMA) has abruptly closed its year-long investigation into Unilever’s environmental claims. The CMA stated the case was dropped after Unilever adjusted some of its product claims. Unilever declined to disclose the specifics of these changes when asked.

Instead, a Unilever spokesperson expressed satisfaction with the investigation closure to Personal Care Insights, saying: “We are pleased that the CMA has confirmed they are closing their investigation. We have complied with all requests for information throughout this process.”

“We have always been committed to making responsible claims about the benefits of our products on our packs and to these being transparent and clear and we have robust processes in place to make sure any claims can be substantiated.”

We spoke to Unilever when the investigation started in December 2023. A spokesperson told us the company was “surprised and disappointed” with the CMA’s announcement and that it did not believe its green claims were “in any way misleading.”

Unilever was investigated as part of a broader review of potentially misleading “green” marketing in the FMCG sector. This sector includes everyday products like food, beverages, cleaning supplies and personal care products, where consumers have increasingly been targeted with sustainability claims.

CMA’s greenwashing review

The closure of Unilever’s case is part of the CMA’s ongoing review of green marketing practices across the £134 billion (US$172 billion) FMCG sector.

This review aimed to determine whether companies in the sector were adhering to consumer protection laws in their environmental messaging. It focused on detecting potentially deceptive or vague terms like “sustainable” or “eco-friendly” without clear evidence and overstating the use of recycled or natural materials.

This review focused on detecting potentially deceptive or vague terms used in the FMCG sector, like “sustainable” or “eco-friendly” without clear evidence.While the CMA praised the positive changes in the industry since introducing its Green Claims Code, the announcement closing the Unilever investigation did not contain any information about whether Unilever’s previous claims violated these consumer protection laws or not. Instead, they opted to close the investigation as a matter of “administrative priority.”

Going green

As consumers are no longer accepting unsubstantiated sustainable cosmetic claims, companies are forced to meet the demand of full transparency across their products’ entire lifecycle. Personal Care Insights recently spoke to Lignopure and Syensqo about the sustainable practices they implement across their supply chains to satisfy consumer demands.

A recent study conducted by scientists from the University of Birmingham, UK, also shed light on the misconception of “environmentally friendly” products. According to their research, consumers often overlook the contribution of leave-on cosmetics to environmental pollution, as the regulatory frameworks do not take into account these products’ impact.

Earlier this year, the EU Council’s position on the Green Claims Directive targeted the environmental claims made by cosmetic companies. The council’s latest adoption required companies to substantiate environmental claims with scientific evidence, provide clearer specifics and get third-party verifications unless exempted.