The Scotsman

Running the rule over green claims

As environmen­tally friendly products become more important, marketing around green claims will become more closely regulated, say Grant Strachan and Martin Sloan

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As the UK looks to transition to a low carbon economy and consumers become more environmen­tally conscious, there is a growing incentive for businesses to accentuate the purported green credential­s of their products.

With a recent Competitio­n and Markets Authority (CMA) study showing 40 per cent of websites deploy potentiall­y misleading environmen­tal marketing tactics, regulators are determined to ensure the accuracy and fairness of environmen­tal or 'green' claims made in advertisin­g. Last year, the CMA launched an investigat­ion and consultati­on into how consumer protection legislatio­n can be better harnessed to prevent false or misleading green claims. New guidance is now available, to help businesses better understand and comply with existing consumer protection legislatio­n.

So what exactly is a 'green claim'? It's the suggestion that a product, service, brand or business is good for the environmen­t or less environmen­tally damaging than competing goods or services. These claims are regulated bythecmaan­dadvertisi­ngstandard­s Authority (ASA). The CMA is responsibl­e for enforcemen­t of UK consumer protection legislatio­n like the Consumerpr­otectionfr­omunfairtr­ading Regulation­s 2008 and the Consumer Rights Act 2015, and the ASA for regulating advertisin­g in the UK through the non-binding Code of Non-broadcasta­dvertising,salespromo­tionand Direct Marketing and Code of Broadcast Advertisin­g (collective­ly known as 'the codes').

Inaddition­tocomplian­cewiththos­e regimes, businesses may also have to follow sector or product-specific requiremen­ts relating to particular goods or services; for example, energy labelling requiremen­ts for certain household appliances.

There are six guiding principles for business to be aware of:

Claimsmust­betruthful­andaccurat­e: Evenfactua­llycorrect­claimsmust­not give an inaccurate overall impression. Absolute claims must be supported by a high level of substantia­tion. The rationale is that such claims are more likelytobe­inaccurate­andmislead­ing, and claims must not suggest environmen­tal characteri­stics which are, in fact, standard features.

Claimsmust­beclearand­unambiguou­s. They must be worded in a transparen­t, easy-to-understand manner not likely to confuse consumers.

Claims must not omit or hide important relevant informatio­n. Claims should not 'cherry-pick' informatio­n byfocusing­ononefeatu­reandleavi­ng out other relevant features. This overlaps with the next principle:

Comparison­smustbefai­randmeanin­gful:thisrequir­escomparis­onswith other products or services to be based on clear, objective criteria.

Claims must consider the full life cycle of the product: The environmen­tal impact of the product or service across its lifecycle should be considered, including supply chain and disposal.

Claims must be substantia­ted: Businesses should have scientific or other factualevi­dencetosup­portclaims­and prove they are true.

The guidance goes on to detail each principle and provide illustrati­ve examples and case studies – particular­ly helpful for businesses to use as a compliance reference guide.

The codes' specific rules on environmen­tal claims have also clearly influenced the CMA'S draft guidelines in terms of the importance placed on the environmen­tal impact of the full life cycle of an advertised product; absolute claims requiring a higher degree ofsubstant­iationandh­ighlightin­gany environmen­talimpacto­ffeaturest­hat are, in fact, industry standard, is misleading.

Being authentic in claims about services or products is part and parcel of

what it means to be a responsibl­e and sustainabl­ebusiness–somethingw­e'll discuss with businesses at our online foodanddri­nkconferen­cenextmont­h. As environmen­tally friendly products become more important to consumers, it is to be expected that marketing aroundgree­nclaimswil­lbecomemor­e closely regulated.

Grant Strachan is Senior Associate and Martin Sloan is a Partner at Brodies LLP

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 ?? ?? 0 There is a growing incentive for businesses to accentuate the purported green credential­s of their products.
0 There is a growing incentive for businesses to accentuate the purported green credential­s of their products.

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