Nearly every company claims to be sustainable and environmentally friendly, but regulators are getting snarky when companies overegg the pudding.
Unilever, the multinational consumer goods company behind well-known brands like Dove soap and Hellmann’s mayonnaise, is under investigation by the Competition and Markets Authority (CMA) over allegations that it may be exaggerating the environmental friendliness of some of its products.
The CMA said it is cracking down on companies suspected of engaging in “corporate greenwashing” as customers want to make more sustainable choices.
The CMA’s primary concern is that Unilever may be misleading consumers with vague and broad statements regarding the environmental attributes of products. The watchdog points to the use of language and imagery on packaging that could potentially overstate the eco-friendliness of these products.
Sarah Cardwell, the CMA boss, expressed concern that consumers trying to make environmentally friendly choices might be misled by so-called “green” products that don’t live up to their claims.
So far, the investigation is part of a broader effort by the CMA to scrutinise green claims made in advertising for various goods, including toiletries, cleaning products, food, and beverages but it could easily be extended to companies who claim their tech services help save polar bears.
Unilever says it is surprised and disappointed at the CMA’s announcement. The company firmly refuted any allegations of misleading claims and emphasised its commitment to making responsible and transparent assertions. A Unilever spokesperson stated that they would cooperate fully with the CMA and comply with any requests for additional information.
The Advertising Standards Authority (ASA) has been actively cracking down on companies suspected of greenwashing. Notably, advertisements for airlines such as Air France, Lufthansa, and Etihad were banned for misleading consumers about their environmental impact. This suggests a broader industry trend where companies are held accountable for potentially overstating their environmental friendliness.
However, this growing trend also presents challenges, as companies may be tempted to engage in greenwashing to capitalise on the demand for sustainable products. Greenwashing involves using misleading marketing tactics to create a false perception of a product’s environmental credentials. This not only undermines consumer trust but also hampers genuine efforts towards sustainability.
The recent crackdown on airlines, including Air France, Lufthansa, and Etihad, provides additional context to the Unilever investigation. The ASA banned advertisements from these airlines for overstating their commitment to environmental sustainability. This reinforces companies’ need to ensure that their marketing claims align with environmental practices.
Lufthansa’s case highlights the importance of clear communication. The airline claimed to “fly more sustainably”, but the ASA found this could mislead consumers. Lufthansa defended its statement by referring to its “Green Fares” option and its goal to be carbon neutral by 2050. However, the ASA emphasised the importance of avoiding ambiguity in environmental claims.
The ASA’s use of artificial intelligence (AI) to identify potential instances of greenwashing is a noteworthy development. As technology becomes more sophisticated, regulatory bodies increasingly rely on AI systems to monitor and enforce advertising standards.
