UK Companies Face Hefty Fines for ‚Greenwashing‘ Claims

Companies in the UK face hefty fines for making false or misleading claims about their products‘ environmental benefits, known as ‚greenwashing‘. The Advertising Standards Authority (ASA) recently ruled that Hyundai Motor UK’s claim that its hydrogen-powered car purifies the air as it goes was unsubstantiated and misleading. To address this issue, the government is introducing a bill which will grant the Competition and Markets Authority (CMA) power to impose direct civil penalties on companies found to be making false green claims. Individuals who breach these laws will also face fines of up to £300,000. The CMA has already launched investigations into several brands and published a green claims code in September 2021.

In summary, this article discusses how companies in the UK are facing potential steep fines for making false or misleading environmental claims about their products. The government is introducing legislation to give the CMA more powers to impose penalties for such breaches of consumer law.

What is Greenwashing?

Greenwashing is a term used to describe the practice of companies or organizations making misleading or false claims about the environmental benefits of their products, services, or policies. It can also refer to the use of green marketing tactics to promote a product that may not actually be environmentally friendly. Companies engaging in greenwashing may exaggerate their efforts in areas such as reducing carbon emissions and energy use, recycling, and using renewable sources of energy. In some cases, companies may even make false claims about their environmental efforts. Consumers should be aware of greenwashing and look for evidence to back up any claims made by companies.
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Picture source: Jason Blackeye