CMA publishes new guidance to supplement Green Claims Code

Why should I read this?

The Competition and Markets Authority (the CMA) has issued new guidance clarifying how consumer law applies to environmental (‘green’) claims across the supply chain (the Guidance). The Guidance supplements the Green Claims Code and explains who may be liable, such as brands, retailers, manufacturers and suppliers, when claims are made, repeated or left unexplained. The CMA also highlights in the Guidance how it will prioritise enforcement under the Digital Markets, Competition and Consumers Act 2024 (the DMCC), including the ability to levy fines without going to court. In short: if you make or repeat a green claim in the UK, you must be able to substantiate it, present it clearly, and keep it up to date. Otherwise, you risk sanction.

What should I do?

Every business in a consumer supply chain should ensure that they are complying with consumer law to ensure they are not considered to be greenwashing. The Guidance read together with the Greens Claim Code is designed to support this. Key messages include:

• Map where environmental claims arise and are repeated (product, pack, web, retail signage, ads).
• Collect and retain robust, current evidence for each claim (e.g., composition certificates, test reports).
• Build and follow an internal claims process: pre‑clearance, periodic re‑checks, supplier attestations, and escalation routes.
• Avoid absolute terms (e.g., ‘100% recycled’) unless true across the whole product; say exactly what is recycled and to what extent.
• Give key information close to the claim (e.g., disposal routes for ‘compostable’ items) and don’t hide it behind links or QR codes.
• Put contract levers in place: warranties on claim accuracy, audit rights, update obligations on supply‑chain changes, and consequences for non‑compliance.
• When evidence is missing or uncertain, change or drop the claim; do not rely on supplier assurances alone.
• Set up range governance so category claims (e.g., ‘eco range’) match product attributes; verify before grouping.
• Prepare for CMA enquiries: keep decision logs, evidence files and a corrective action playbook (label edits, takedowns, consumer redress).

What else do I need to know about?

Liability can attach at multiple points: the business that makes the claim and those that repeat it in the supply chain whether that is the retailer, brand, manufacturer etc. The CMA will target practices that risk broad consumer harm, lack internal controls, or ignore prior guidance and decisions by the Advertising Standards Authority. The Guidance also explains that the CMA will decide its enforcement approach based on all the facts before it, its current priorities, resources and powers.

The CMA can order conduct changes and redress, and impose significant fines without having to take a business to court under the DMCC Act. Proactive fixes before an investigation may mitigate penalties. Also, if you collaborate with competitors on sustainability initiatives, use the CMA’s Green Agreements Guidance to stay competition‑law safe.

Further reading

Global Sustainability & ESG: 2025 in Review | Eversheds Sutherland

ICJ says that governments have actionable, binding climate change obligations | Eversheds Sutherland

UK - CMA publishes new Green Claims Code to tackle potential greenwashing