The UK's Competition and Markets Authority (CMA) has been granted enhanced powers to tackle greenwashing, particularly in the fashion industry, with enforcement beginning in April 2025. This action responds to prevalent misleading sustainability claims within the UK business sector.
The Digital Markets, Competition and Consumers Act 2024 empowers the CMA to directly penalize companies that violate consumer protection laws, including those making claims that do not adhere to the Green Claims Code's six principles. These principles ensure companies consider a product's entire life cycle when making environmental claims.
Previously, the CMA needed court orders to enforce these laws. Now, it can impose penalties of up to 10% of a company's global annual turnover for breaches. This aims to ensure transparency and accuracy in environmental claims, addressing misleading practices common in the fashion and food industries. In September 2024, the CMA also issued guidance to fashion brands to help them comply with the Green Claims Code.