In case you missed it, the CMA has dropped its investigation into environmental claims made by Unilever. Back in December 2023, it announced (with rather more fanfare) that it was investigating Unilever's green claims as part of its wider FMCG investigation. Earlier this month, it confirmed that it was not taking further action against Unilever.

The CMA’s concerns included whether:

  • certain statements and language used by Unilever appeared 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 so may create an inaccurate or misleading impression.
  • claims focusing on a single aspect of a product may suggest it is environmentally friendly as a whole.
  • certain green claims – particularly in relation to recyclability – may be unclear, as they fail to specify whether they relate to all or part of a product, or packaging; and
  • Unilever’s use of colours and imagery – such as green leaves – may create the overall impression that some products are more environmentally friendly than they actually are.

The CMA has decided to close this investigation. It says that it has taken a range of factors into account, including changes Unilever has made to claims on some of its products and the wider impact of its work on tackling misleading green claims. The CMA says that its Green Claims Code and successful enforcement action to date has helped businesses understand how they can promote their green credentials whilst staying on the right side of the law. The CMA has seen positive changes to the claims made including in the fast-moving consumer goods sector.

The CMA has decided as a matter of administrative priority to close this investigation. The CMA has not taken a view on Unilever’s compliance with consumer law.  

Although the CMA has closed this investigation, its wider FMCG activities continue and it may investigate other companies. And as we've seen, it likes to publicise first, ask questions later. There is a question to ask here about whether it should be investigating companies behind the scenes before it goes public with its concerns.  It will be of interest to see how it runs investigations once the Digital Markets, Competition and Consumers Act comes into force next year and it enjoys much punchier powers.

Marketers should be aware that both the ASA and the CMA are very tuned into this issue and should consider any green claims very carefully.  Both regulators have issued detailed advice, and precise, well substantiated claims are much more likely to be acceptable than general broad brush claims.