This supplements the CMA's 2021 Green Claims Code—which outlines six principles for truthful, clear, substantiated claims considering product lifecycles—and sector-specific advice like fashion retail guidance, adopting a broad definition of "making" a claim via ads, packaging, imagery, or omissions.[1][2][3][4] Key players include the CMA (primary enforcer), Advertising Standards Authority (ASA) (aligned via CAP/BCAP Codes), and businesses like brands, manufacturers, distributors, and retailers; it ties to the Digital Markets, Competition and Consumers Act 2024 (DMCC), granting CMA direct enforcement powers since April 2025, with fines up to 10% of global turnover or £300,000.[3][4][5][6] Guidance emphasizes shared but differentiated liability, requiring "reasonable steps" for verification based on role, resources, and claim significance, plus CMA's Green Agreements Guidance for collaborative sustainability efforts.[2][4][5][7]
Prompted by complex global supply chains, rising consumer demand for eco-products, business requests for clarity, and prior greenwashing concerns, this follows the DMCC's 2024 enactment and 2025 enforcement activation amid global trends like U.S. FTC Green Guides (2024) and EU proposals.[4][5][6][7] Timeline: Green Claims Code (2021), DMCC powers (2025), supply-chain guidance (Jan 2026).[3][4]
Newsworthy now due to fresh enforcement risks post-DMCC, signaling CMA escalation on greenwashing as consumers prioritize sustainability, urging supply chain audits, training, and evidence retention to avoid penalties in a high-stakes regulatory environment.[3][4][5][6]