Unilever is facing an investigation by the UK government’s Competition and Markets Authority (CMA) concerning its environmental claims.
The consumer watchdog is currently investigating whether the FMCG multinational is making misleading 'green' claims about its products. Although the CMA has not specified the Unilever brands in question, it has indicated that kitchen products and toiletries are areas of particular concern regarding greenwashing, which involves creating a false impression of a brand or product's environmental friendliness.
Unilever’s brands in these categories encompasses Cif, Dove, and Domestos. The CMA is investigating the company's use of "vague and broad" language regarding the environmental impact of its products, as well as claims that some products are overstating the naturalness of their ingredients. Additionally, the CMA is examining whether the recycling credentials of certain products are clearly communicated.
Unilever is also facing scrutiny for its use of color. The Competition and Markets Authority (CMA) is looking into whether the use of colors and imagery, particularly green leaves, creates the perception that the products are more environmentally friendly than they really are.
This investigation into Unilever is part of the CMA's broader effort to combat greenwashing in the fast-moving consumer goods (FMCG) industry, which was initiated in January 2023.
Sarah Cardell, CEO of the CMA, voices concern about the misleading nature of 'green' products and the impact it has on the environment. The evidence so far has raised doubts about the environmental friendliness claims made by Unilever for certain products. The CMA will investigate these claims to ensure their accuracy, and take action if greenwashing is found to protect consumers.
The investigation will spark more discussion about the scrutiny brands are facing in relation to environmental claims. Earlier this year, Michelle McEttrick, the chief customer officer of Primark, noted that allegations of greenwashing can be challenging for brands that are working to improve their sustainability efforts. She also expressed concerns that increased regulations on greenwashing could hinder brands' progress on sustainability issues.
‘Surprised and disappointed’
The CMA states that the progress of the investigation relies on the evidence presented by Unilever to respond to these allegations. Potential resolutions include obtaining a commitment from Unilever to modify its practices, pursuing legal action against the company, or concluding the case without further steps.
Unilever expressed surprise and disappointment about the investigation, and denied that its claims are misleading in any way.
A spokesperson for the company stated, "Unilever is dedicated to making honest claims about the benefits of our products on our packaging, and ensuring transparency and clarity. We have strong processes in place to ensure that all claims can be backed up."
The company states that it will continue to collaborate with the CMA's investigation.