Copyright © BusinessAMBE 2023

In the United Kingdom, the government's Competition and Markets Authority (CMA) is launching an investigation into Unilever, the multinational company that markets a variety of consumer products. The CMA will investigate whether Unilever's claims about environmentally friendly products are true.

All kinds of authorities are increasingly checking whether companies' claims about environmental friendliness are true. Marketing yourself as a company in a green way is attractive to consumers. But it is not easy to live up to your marketing, because environmental regulations are becoming increasingly strict, both in the EU and in the UK.

In the news: Britain's CMA investigates Unilever claims of environmental friendliness.

  • The CMA has been scrutinizing companies for some time in the fight against greenwashing. One tests various elements of promotional campaigns against a 2008 law, the Consumer Protection from Unfair Trading Regulations.
  • In a press release, the CMA reports the claims it will examine. They include:
    • Using potentially vague text on products and potentially misleading consumers about environmental impact.
    • A possible exaggeration in the "naturalness" of products.
    • Certain claims around recycling that may not be entirely accurate
    • The use of certain colors and symbolism - such as green leaves - could give consumers the wrong impression about environmental friendliness.
  • Unilever, a Dutch/British company, produces personal care and cleaning products such as Cif and Dove. Food brands such as Ben & Jerry's, Ola, Becel and Lipton are also part of the giant's portfolio.
    • The company declined to disclose exactly which of their brands or products the CMA is targeting.

Quoted: The CMA is combative, Unilever wants to cooperate

  • "So far, we have seen evidence that raises concerns about how Unilever presents certain products as environmentally friendly. We will be investigating these claims in depth to see if they are true," said Sarah Cardell, Chief Executive of the CMA.
  • "If it turns out to be greenwashing, we will take action to ensure consumers are protected," she cited.
  • In a response to the Dutch Financieele Dagblad Unilever says it will cooperate. The company reacts "surprised and disappointed" to the announcement, and wants to refute all allegations.

No shockwave within Unilever

Zoomed out: criticism of Unilever grows

  • Unilever was known as one of the most sustainable companies in the world. A number of significant changes were made by Dutchman Paul Polman.
  • In September 2022, news suddenly arrived that CEO Alan Jope would quit this year, for no real reason.
  • Since Polman's departure, criticism has been heard regularly from shareholders. They feel that the company lags too much behind competitors such as Procter & Gamble. They blame this on too much focus on sustainability, writes the FD.
  • More and more it is heard how important sustainability has become as a spearhead for companies, especially in marketing.
  • The news caused Unilever shares to fall slightly by 0.25 percent, but did not cause an earthquake.
  • Considering also the reaction of shareholders, the company does not seem to be in huge trouble because of the CMA investigation. Unless a few corpses do fall out of the closet.

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