(Alliance News) - The UK competition regulator on Friday said it is investigating online fast-fashion retailers Asos PLC and boohoo Group PLC over their 'green' fashion claims.
The probe into alleged 'greenwashing' also includes the George brand of grocer Asda. 'Greenwashing' is an attempt by a business to market itself as environmentally conscious, even though its practices may not be.
The Competition & Markets Authority said the companies make "broad claims about the use of recycled materials in new clothing – with little to no information about the basis for those claims or exactly which products they related to".
The CMA aims to "get to the bottom of whether the firms' green claims are misleading customers."
CMA interim Chief Executive Sarah Cardell said: "People who want to 'buy green' should be able to do so confident that they aren't being misled. Eco-friendly and sustainable products can play a role in tackling climate change, but only if they are genuine."
The CMA added: "Should we find these companies are using misleading eco claims, we won't hesitate to take enforcement action – through the courts if necessary."
Asos and boohoo said they will cooperate with the investigation and are "committed" to providing accurate information about their products. Both declined to comment further on the investigation.
Asos shares rose 2.1% to 1,071.00 pence each in London on Friday morning, while boohoo shares were 3.2% higher at 68.20p each.
By Tom Budszus; tombudszus@alliancenews.com
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ASOS (ASC)
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