LONDON - British market regulators are investigating “green” claims made by Unilever Plc, saying they want to ensure that consumers are not being misled by a company that has touted social responsibility as a selling point for goods ranging from shampoo to ice cream.
The maker of Dove soap and Cif cleaner may have been overstating the environmental qualities of certain products through the use of “vague and broad” claims, unclear statements and natural looking images and logos, the Competition and Markets Authority said on Tuesday.
Consumer goods makers have used eco-friendly marketing to make their products stand out as shoppers tighten their belts and switch to supermarket own brands. But a crackdown in the UK and European Union, designed to prevent baseless claims and protect consumers, has exposed Unilever and its peers to greater scrutiny.
The EU this year reached a provisional agreement to amend consumer rights laws to incorporate protections against greenwashing.
The CMA action is part of a deeper investigation into so-called greenwashing. Earlier this year, it launched a review of a wide range of essential items used by people on a daily basis and repurchased regularly, such as food and drink, cleaning products, toiletries and personal-care items.
The regulator did not immediately provide details of specific green claims made by Unilever.
In January, the CMA also launched an investigation into the fast fashion companies Asos, Boohoo and George to scrutinise eco-friendly marketing. Asos had dubbed one of its fashion lines “responsible” while Boohoo touted a “ready for the future” range. The vast majority of fast fashion ends up in landfills.
]Possible outcomes of the CMA investigation could include securing undertakings from Unilever that commit to change the way it operates or potentially even taking it to court.
Unilever said it was disappointed by the CMA’s investigation and disputed the claims. The Anglo-Dutch company said it only makes responsible, transparent and clear statements about the benefits of its products and has processes in place to ensure they can be substantiated.
It added that it provides shoppers with information on how to dispose of its packaging. The company said it would cooperate fully with the CMA review.
Unilever has previously faced complaints from some investors that it prioritises a politically correct image over the success of its business. Fund manager Terry Smith said in 2022 that a company that feels that mayonnaise needs a “purpose” has “clearly lost the plot”.
Former boss Alan Jope had said that all Unilever’s brands should have a social purpose, a policy that current CEO Hein Schumacher has since rowed back on.
The CMA investigation will be a further challenge for Schumacher as he attempts to turn around a group whose performance has underwhelmed in recent years.
The regulator said it was concerned that claims in some of Unilever’s packaging and marketing may exaggerate how “natural” a product is. It is also looking at statements that focus on a single aspect of a product and then suggest it is environmentally friendly as a whole.
Assertions about the “recyclability” of products and the use of images such as green leaves to make a product seem more natural will also be examined.