Unilever faces “greenwashing” probe over concerns shoppers are misled

Unilever is under investigation by the UK’s Competition and Markets Authority (CMA) for potential “greenwashing” practices. The investigation focuses on concerns that Unilever may be overstating the environmental credentials of certain products, potentially misleading consumers.

Specific Concerns and Products:

• Vague and Broad Environmental Claims: The CMA is concerned that Unilever’s language on some products, particularly kitchen and toiletries brands like Cif, Dove, and Domestos, may be too ambiguous and lead consumers to believe they are more environmentally friendly than they actually are.
• Exaggerating Natural Ingredients: The investigation is also exploring whether Unilever is overstating the natural ingredient content in some of its products.
• Unclear Recycling Credentials: The CMA is examining whether the recycling instructions for certain products are clear and accurate.
• Misleading Use of Color: The use of green colors and imagery on packaging is also being investigated, with concerns that it may create a false impression of environmental friendliness.

CMA’s Wider Crackdown:

This investigation is part of the CMA’s broader initiative launched in January 2023 to tackle greenwashing practices within the FMCG sector. This initiative aims to ensure that consumers are not misled by companies exaggerating the environmental benefits of their products.

“More and more people are trying to do their bit to help protect the environment, but we’re worried many are being misled by so-called ‘green’ products that aren’t what they seem,” says Sarah Cardell, CEO at the CMA.

“So far, the evidence we’ve seen has raised concerns about how Unilever presents certain products as environmentally friendly. We’ll be drilling down into these claims to see if they measure up. If we find they’re greenwashing, we’ll take action to make sure shoppers are protected,” she adds.

Unilever’s Response:

Unilever has expressed surprise and disappointment with the investigation, stating that they are “committed to making responsible claims about the benefits of our products” and that their claims are “transparent and clear.” They emphasize robust processes for substantiating their claims and highlight their participation in initiatives like the UK Plastics Pact to address plastic waste.

“Unilever is committed to making responsible claims about the benefits of our products on our packs and to these being transparent and clear, and we have robust processes in place to make sure any claims can be substantiated,” says a company spokesperson.

It adds: “We use the On-Pack Recycling Label (OPRL) to provide consumers with information on how to dispose of our packaging after use, and Unilever is a founding signatory of the UK Plastics Pact, which brings together the entire plastics packaging value chain to tackle the challenges around plastic waste.”

Industry Implications:

The investigation raises important questions about how brands should communicate their environmental efforts and the potential risks of greenwashing accusations. Primark’s chief customer officer Michelle McEttrick expressed concerns that increased regulations around greenwashing could discourage brands from pursuing sustainability initiatives.

The investigation’s outcome will depend on Unilever’s response and the evidence provided. Possible outcomes include:

• Unilever providing assurances and modifying its practices.
• The CMA taking legal action against Unilever.
• The CMA closing the case without further action.