Unilever faces “greenwashing” investigation but FMCG giant “surprised” by UK regulators

13 Dec 2023 --- Unilever has an incredible array of products used daily by consumers worldwide, but some of those items are now targeted by the UK’s Competition and Markets Authority (CMA).

The regulator is concerned certain “green” claims may be unclear and misleading to consumers, so it has launched an initial review as part of its investigation into some products found at the multi-billion dollar company.

“Drilling down” into Unilever
CMA CEO Sarah Cardell says her team is looking at “essential” products consumers purchase at the grocery store, from detergent and kitchen spray to toiletries, and will be “drilling down into Unilever’s claims to see if they measure up.”

Cardell believes evidence her team has gathered “raises concerns about how Unilever presents certain products as environmentally friendly…” If the CMA concludes that Unilever has been “greenwashing,” it promises to take action to ensure “shoppers are protected.”

“Greenwashing” is the process of conveying a false impression or misleading information about a company’s environmentally friendly products.Unilever faces “greenwashing” probe.

Unilever “surprised and disappointed”
Personal Care Insights reached out to Unilever and was told it is “surprised and disappointed” with the CMA’s announcement and does not believe its green claims are “in any way misleading.”

Unilever is a juggernaut in the consumer goods sector, well-known for its multi-billion dollar personal care brand Dove. It is also home to Cif, Comfort and deodorant brand Lynx.

The company rejects criticisms made by the CMA and says it is “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.”

Watchdog digs up “concerning practices”
The CMA says its initial review of the company highlighted a range of “concerning practices” that sparked the formal investigation. The regulator wants to know whether:

• Certain statements and language used by Unilever appear vague and broad and may mislead shoppers regarding the environmental impact of those products.

• Claims about some ingredients are presented in a way that may exaggerate how “natural” the product is and may create an inaccurate or misleading impression.

• Claims focusing on a single aspect of a product may suggest it is environmentally friendly.

• Certain green claims — particularly about recyclability — may be unclear, as they fail to specify whether they relate to all, part of a product or packaging.

• Unilever’s use of colors and imagery — such as green leaves — may create the overall impression that some products are more environmentally friendly than they are.

Overstating “green” claimsUK watchdog targets “essential” items.
As the CMA looks further into Unilever’s packaging to find evidence of an overstatement of “green” claims, including “natural” looking images and logos, the company stands behind its practices, telling us it uses “...the On-Pack Recycling Label (OPRL) to [provide] consumers with information on how to dispose of our packaging after use…”

It also points out that “Unilever is a founding signatory of the UK Plastics Pact, which brings together the entire plastics packaging value chain to tackle the challenges around plastic waste.”

Broader “greenwashing” investigation
This latest investigation is part of the CMA’s broader initiative, launched last January, to include fast-moving consumer goods to find out how goods and services claiming to be environmentally friendly are marketed and to see if consumers could be misled.

The CMA’s “annual plan commitment” entails moving toward a low carbon economy by trying to “understand better how consumer protection legislation can be used to tackle false or misleading environmental claims that affect consumers.”

Its main areas of focus include:

• How claims are made about the environmental impact of products and services

• Whether such claims are supported by evidence

• Whether such claims influence consumer behavior when purchasing such goods and services

• Whether an absence of information about the environmental impact of products and services misleads consumers

UK competition regulator aims to “protect consumers.”Last year, the competition regulator targeted “green” claims made by brands such as Asos, Boohoo and Asda and may open up even more cases to see if goods are marketed accurately and appropriately.

CMA seeks Unilever evidence
The competition regulator says Unilever has already been contacted, and the CMA will set out its concerns in writing.

The watchdog will then use its “information-gathering powers” to gather more evidence for its investigation and proceed further depending on what the evidence uncovers.

Possible outcomes could include:

• Getting Unilever to change how it operates.

• Taking the company to court.

• Even closing the case without further action.

Unilever tells us it will “continue to cooperate with the CMA and fully comply with further requests for information.”

By Anita Sharma

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