42 percent of companies exaggerate sustainability claims, says new report

The European Commission (EC) is cracking down on greenwashing and companies who wildly “exaggerate” their sustainability credentials.

In a report released last week, the EC says a sweep of websites analysed green online claims from various business sectors such as garments and fashion, cosmetics and household equipment. National consumer protection authorities had reason to believe that in 42 percent of cases the claims were exaggerated, false or deceptive and could potentially qualify as unfair commercial practices under EU rules.

‘Greenwashing’ has increased as consumers increasingly seek to buy environmentally sound products.

Didier Reynders, Commissioner for Justice, said: “More and more people want to live a green life, and I applaud companies that strive to produce eco-friendly products or services. However, there are also unscrupulous traders out there, who pull the wool over consumers’ eyes with vague, false or exaggerated claims. The Commission is fully committed to empowering consumers in the green transition and fighting greenwashing. This is precisely one of the main priorities of the New Consumer Agenda adopted last autumn.”

Main findings

After a broader screening, the Commission and consumer authorities examined 344 seemingly dubious claims in more detail and found that: In more than half of the cases, the trader did not provide sufficient information for consumers to judge the claim’s accuracy.

In 37 percent of cases, the claim included vague and general statements such as “conscious”, “eco-friendly”, “sustainable” which aimed to convey the unsubstantiated impression to consumers that a product had no negative impact on the environment. Moreover, in 59 percent of cases the trader had not provided easily accessible evidence to support its claim.

In their overall assessments, taking various factors into account, in 42 percent of cases authorities had reason to believe that the claim may be false or deceptive and could therefore potentially amount to an unfair commercial practice under the Unfair Commercial Practices Directive (UCPD).

Next steps

National authorities will contact the companies concerned to point out the issues detected and to ensure that these are rectified where necessary. The findings of this sweep will feed into the impact assessment to be prepared for the new legislative proposal to empower consumers for the green transition, which was announced in the New Consumer Agenda.

Background

The screening of websites with the focus on ‘greenwashing’ is one of several initiatives the Commission undertakes in order to empower consumers to make more sustainable choices.

For further information visit www.ec.europa.eu.

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