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United Kingdom
CMA environmental claims undertakings (Boohoo, ASOS, Asda) set UK benchmark; DMCC Act boosts consumer enforcement—compliance duties and follow-on civil risk for retailers and brands
Published on: 17 May 2024
Published by a LexisNexis Commercial expertLegal News
Article summary
Nearly two years after launching its probe into Boohoo, ASOS and Asda over potentially misleading environmental claims, the CMA has confirmed it has accepted Undertakings from each company. Under these Undertakings, the parties agree not to introduce new misleading environmental claims and to remove any that already exist. Although the Undertakings bind only the firms under investigation, the CMA’s accompanying open letter—issued alongside them and set against its expanding consumer caseload—signals that complying with consumer law is regarded as no less important than adhering to competition law. The letter also makes clear that the Undertakings should be treated as the benchmark for making environmental claims. Any business engaging in such claims should therefore carefully scrutinise its statements and practices to ensure they meet the Undertakings’ requirements. The CMA’s stance is especially timely given it is expected imminently, via the DMCC Act, to obtain significantly enhanced consumer enforcement powers. The Act, which is anticipated to receive royal assent within the next few weeks, will broadly bring the CMA’s powers under consumer protection law into alignment with its competition law powers...
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