UK companies face hefty fines for greenwashing

​illuminem summarizes for you the essential news of the day. Read the full piece on Sustainable Views or see below:​ 

🗞️ Driving the news: The UK's Digital Markets, Competition and Consumers Act (DMCCA) came into effect on April 6, significantly enhancing the enforcement powers of the Competition and Markets Authority (CMA)
• This legislation empowers the CMA to impose fines of up to 10% of a company's global annual turnover for consumer law infringements, including misleading environmental claims, commonly known as greenwashing

🔭 The context: Prior to the DMCCA, the CMA's ability to penalize companies for deceptive practices was limited, often requiring lengthy court proceedings
• The introduction of this act streamlines the process, allowing the CMA to act more swiftly against businesses that violate consumer protection laws
• Industries such as food, fashion, and consumer goods are anticipated to be primary areas of focus due to their direct impact on consumers and previous instances of misleading environmental claims

🌍 Why it matters for the planet: The strengthened regulatory framework aims to deter companies from making unsubstantiated environmental claims, thereby promoting transparency and accountability
• This move is expected to encourage businesses to adopt genuine sustainable practices rather than resorting to greenwashing, ultimately contributing to more informed consumer choices and positive environmental outcomes​

⏭️ What's next: Companies operating in the UK must reassess their marketing strategies and substantiate any environmental claims to ensure compliance with the new regulations
• The CMA is likely to monitor compliance actively and may initiate investigations into sectors with a history of greenwashing allegations

💬 One quote: "Greenwashing is likely to be a focus of the regulator’s new powers," legal experts indicate, highlighting the CMA's commitment to addressing misleading environmental claims

📈 One stat: Under the DMCCA, companies providing goods and services to UK consumers can be fined up to 10% of their global turnover for consumer law infringements

See here detailed sustainability performance of companies like Unilever, Boohoo, and Asos

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