UK regulators crack down on illegitimate green labels and high prices of home and personal care essentials

01 Feb 2023 --- The UK government’s Competition & Markets Authority (CMA) is examining the accuracy of “green” claims featured on household essentials such as toiletries and personal care items. It intends to ensure that shoppers are not misled when purchasing a product. At the same time, the authority has launched a program examining unit pricing practices online and in-store in the groceries sector.

“These products are the essentials on everyone’s shopping lists: food and drink, shampoo, laundry detergent, toothpaste and cleaning products,” says Sarah Cardell, chief executive at CMA.

“As more people than ever try to do their bit to help protect the environment, we’re concerned many shoppers are being misled and potentially even paying a premium for products that aren’t what they seem, especially at a time when the cost of living continues to rise.”

George Lusty, senior director for Consumer Protection at CMA, affirms that the authority is aware that the increased cost of living has “hit the pound in people’s pockets.”

“That’s why we’re pressing on with this important grocery unit pricing work to ensure shoppers can more easily compare prices and make choices that are right for them.”

Furthermore, CMA has observed a “significant” number of household products are marketed as “green” or “environmentally friendly.”

“Now is a good time for businesses to review their practices and ensure they’re operating within the law,” Cardell adds. “This is because if CMA discovers that green claims are unfounded, it may use enforcement to open an investigation into specific companies.”

Claims on the line
CMA is expanding its ongoing investigation on greenwashing, aiming to verify whether the products and services of FMCG that claim to be green or eco-friendly are marketed to shoppers accurately.

Specifically, it seeks to understand better how the consumer protection legislation can be used to tackle false or misleading environmental claims that affect consumers. This project builds on CMA’s Annual Plan commitment to support the move toward a low-carbon economy.

The focal points of the investigation will question how the claims about the environmental impact of products and services are being made, including whether the claims are backed by evidence and influence the behavior of purchasing such products. 

Lastly, CMA will study whether an absence of information about the environmental impact of products and services misleads consumers.

Green claims – also called “environmental claims” or “eco-friendly claims” – are defined by the CMA as claims that show how a product, service, brand or business provides a benefit or is less harmful to the environment.

Clearing the fog
CMA will analyze such claims on products that are online and in-store to check whether companies are complying with the UK consumer protection law.

Eco-statements that are vague and broad such as marketing products or their packaging as “sustainable” or “better for the environment,” will be flagged by CMA.

Moreover, claims about recycled or natural materials used in products will also be checked to see how recyclable they are.

“We’re concerned many shoppers are being misled and potentially even paying a premium for products that aren’t what they seem,” expresses Cardell.

“Our work to date has shown there could be greenwashing going on in this sector, and we’ll be scrutinizing companies big and small to see whether their environmental claims stack up.”

CMA’s Green Claims Code and checklist are available on its website to help businesses understand how to communicate their green credentials.

Eco-friendly efforts
Personal care innovations are increasingly adopting tech-driven tools to promote greener beauty.

Firmenich recently launched the next generation of its EcoScent Compass with “comprehensive sustainability data and verifiable claims.” Using EcoScent Compass perfumers can formulate responsibly by optimizing fragrance designs at the very beginning of creation with more than 80 data points for each ingredient.

To scale further its renewable ingredients, Firmenich also launched Re:New, a collection of ten upcycled ingredients powered by its innovation program Sylvergreen.

Additionally, International Flavors & Fragrances rolled out a new system to precisely calculate the carbon footprint of natural ingredients for perfume manufacturers.

Last month, PersonalCareInsights explored the latest green ingredient R&D highlights, which include new nature-based materials in cosmetic packaging and moves to harness the functionalities of yeast in a “molecular leap” for producing bio-collagen.

In other packaging sector developments, Holmen Iggesund entered into a long-term agreement with Yangi to explore the opportunities of bio-based and renewable packaging for the cosmetic and beauty industry. 

By Venya Patel