Who: The Competition and Markets Authority (CMA)
Where: United Kingdom
When: 22 January 2026
Law stated as at: 9 February 2026
What happened
The CMA has published additional guidance, “Making green claims: Getting it right, across the supply chain“, which complements the CMA’s existing Green Claims Code, which is designed to help businesses understand their existing obligations under consumer protection law when making environmental claims. The new guidance provides further clarity on where responsibility for making environmental claims lies at different points in the supply chain.
‘Making’ an environmental claim
Consumer protection law, specifically the unfair commercial practices regime of the Digital Markets, Competitions and Consumers Act 2024 (DMCCA), applies to all traders whose practices relate to the promotion or supply of products to consumers, including manufacturers, suppliers, brands, distributors and retailers. Businesses across the supply chain making environmental claims, whether directly, indirectly or by passing on information from others to consumers, must take steps to ensure that such claims are accurate and not misleading.
“Making” an environmental claim includes what businesses say about the environmental credentials of a product (on their websites, on product packaging, etc.), how the product is presented (including logos and imagery), and what is left unsaid where that information is needed for consumers to make informed decisions (for example, in relation to the disposal of the product for the environmental benefit to be realised). Businesses can be liable where they originate a claim, repeat it (for example, by stocking a product) or pass it on.
Liability across the supply chain
While different businesses in the supply chain may hold the information required to verify claims made to consumers, complex supply chains do not dilute legal responsibility. Businesses may need to work together to ensure that claims are accurate and not misleading. For example, contractual arrangements may require that certain assurances be provided.
Where a business cannot obtain sufficient information to verify a claim, it should consider changing how the claim is made. Where a business cannot obtain such information because another business is the source of the claim, it may need to consider its trading relationship with that business for the relevant product, given the associated legal risk. Innocent or unwitting breaches will still infringe consumer protection law in the context of civil enforcement action by the CMA (that is, the CMA using its powers under the DMCCA) and exercising “due diligence” to avoid making a misleading environmental claim does not constitute a defence in civil enforcement proceedings.
Practical steps for businesses
The guidance includes illustrative examples and practical checklists for retailers, brands, suppliers and manufacturers to assist businesses in designing internal processes, relationships with other parties in the supply chain, contractual arrangements and evidence-gathering practices to support compliant environmental claims. Examples of actions include:
- Retailers should seek robust, credible and up to date evidence from suppliers before advertising and selling products to consumers, and should review claims and documentation on a regular basis.
- Brands should ensure that their claims are appropriately substantiated and should provide retailers with appropriate assurance that claims the brand makes are correct.
- Suppliers and manufacturers should provide retailers and brands with the assurance they need so that they can confidently make accurate claims.
CMA’s approach to consumer law enforcement
The CMA has also highlighted its new direct consumer protection enforcement powers under the DMCCA and its priority areas of focus for enforcement action. This includes focusing early action on the more egregious practices, in line with the CMA’s approach document on implementing an enhanced consumer protection regime under the DMCCA published in April 2025. The CMA has indicated that it is more likely to view practices as particularly egregious where businesses:
- Should already be aware of their consumer law obligations – for example, through the CMA’s Green Claims Code or where there has been previous action from the CMA or other bodies such as the Advertising Standards Authority (ASA). The CMA highlights that these may have relevance to a business even if the guidance or decision refers to another sector.
- Do not have appropriate internal processes in place to help ensure that their environmental claims are accurate and do not mislead consumers (or fail to properly follow such processes where they are in place). The CMA’s sector-specific guidance on making green claims about fashion products provides some guidance on internal processes and can have broader relevance.
Why this matters
The CMA’s additional guidance provides important clarification on the allocation of responsibility for environmental claims across supply chains, and highlights that more than one business may be liable in the event of misleading green claims. The CMA notes that when investigating or considering whether to investigate concerns that environmental claims may be misleading, it will consider carefully which business or businesses it is appropriate to investigate, including retailers, brands, manufacturers or other businesses in the supply chain.
The CMA’s illustrative examples set out scenarios indicating when it is more likely to focus on the practices of retailers, brands, manufacturers or suppliers, and which party is best placed to remedy the issue in a particular case. The CMA highlights that, depending on the facts of a particular case, proactive steps taken to cease and correct infringing conduct prior to the launch of an investigation may be regarded as a mitigating factor.
The guidance may also serve as a reference point in contract negotiations with supply chain counterparties, to explain why a business requires the inclusion of appropriate contractual provisions governing the making of environmental claims and the requirements for due process and substantiation behind all such claims. Finally, the guidance stresses the importance of having regard to CMA and ASA guidance on environmental claims, particularly where best practice recommendations have been issued.
