The UK's CMA Advises Fashion Brands to Revise Sustainability Claims

Author

Induja from Trace
September 26, 2024

Happy Thursday!

We’re excited to kick off our newsletter this week with a discussion on what’s going on in the industry. In conversation this week we’ll dive into what’s happening in the regulatory fashion landscape of the UK and the authorities there. We’ll also share an update on the latest and greatest of companies in the sustainable fashion space and our weekly brand spotlight.

 Thanks for reading!

Headlines

The UK’s Competition and Markets Authority (CMA) has advised 17 British fashion brands to review their sustainability claims to ensure they align with consumer protection laws. The advice stems from concerns over potential greenwashing, where brands may mislead customers about their environmental impact. The CMA has introduced compliance guidelines based on its Green Claims Code, urging brands to be transparent in their marketing. Although no enforcement actions have been initiated and these brands have not been publicly named, the CMA will gain more authority under the Digital Markets, Competition, and Consumers Act in 2025, which could result in fines for non-compliance.

In the past the CMA has investigated large brands such as BooHoo and ASOS for greenwashing and misleading consumers, which led to pledges from these brands for improvement. 

Read more here (1, 2).

Analysis of the Week

Let’s do a deep dive and learn more about the CMA’s Green Claims Code and what it entails for businesses. 

Category

Explanation

Purpose of the Code

To ensure that businesses make clear, accurate, and substantiated environmental claims to protect consumers from misleading claims (greenwashing).

Six Principles of the Green Claims Code 

1. Claims must be truthful and accurate.

2. Claims must be clear and unambiguous.

3. Claims must not omit or hide important information.

4. Comparisons must be fair and meaningful.

5. Claims must consider the full lifecycle of the product.

6. Claims must be substantiated.

Affected Parties 

The code applies to businesses in all sectors that market products or services with environmental claims.

Brand Spotlight

Learn about one of the sustainable brands on Trace’s marketplace!

Check out today’s featured brand: Gooseberry Fool

Gooseberry Fool is an ethically made, organic cotton collection of clothing and accessories made for babies and toddlers, handmade by artisans. Gooseberry Fool values slow fashion, sustainability, and fair compensation for its artisans. 

Rachel, the founder of Gooseberry Fool , who initially started crocheting for her own children, before starting to sell her pieces. Eventually she expanded to working with artisans in South India. Gooseberry Fool uses 100% organic cotton that has been GOTS (Global Organic Textile Standard) Certified. 

Gooseberry also encourages circular economy through its preloved program: offering customers vouchers for donating pre-loved Gooseberry items that no longer fit their children. These items are donated to vulnerable moms in need of baby clothes. 

Check out Gooseberry Fool for sustainable, ethically made, and stylish baby clothes!

Innovation in Fashion

Infinted Fiber Company - Creates Infinna™, premium texitle fiber made from textile waste that is also biodegradable

Spinnova -  fiber made from wood pulp or leather, textile, and agricultural waste without harmful chemicals 

Boody - Consumer facing undergarments brand made sustainably with bamboo viscose

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