Are Greenwashing Fines Imminent? What UK Food Businesses Should Know
From 6 April 2025, the UK’s Digital Markets, Competition and Consumers Act will allow the CMA to fine companies—without going to court—for misleading claims, including potential greenwashing. Food businesses could face fines of up to 10% of global turnover if an investigation into greenwashing is launched, so ensuring compliance with the CMA’s Green Claims Code is essential.
Summary
- From 6 April 2025, the UK’s Digital Markets, Competition and Consumers Act 2024 will give the CMA the power to fine companies—without going to court—for breaches of consumer protection laws, including misleading claims and unfair commercial practices.
- While the CMA’s enforcement priorities are not yet clear, misleading environmental claims (greenwashing) could be scrutinised under broader misleading practices rules.
- Food businesses could face fines of up to 10% of global turnover if found in breach of consumer protection laws.
- To avoid any potential risks, ensure your sustainability claims comply with the CMA’s Green Claims Code.
What's Changing in UK Enforcement, and How Will This Affect Food Businessses?
On 6 April 2025, the Digital Markets, Competition and Consumers Act 2024 will take effect.
This Act will grant the Competition & Markets Authority (CMA) new powers to enforce consumer protection laws directly—without the need for court proceedings. It also includes the authority to impose fines of up to 10% of global turnover for businesses found in breach.
As the CMA has previously shown a strong focus on greenwashing, food and drink businesses should take this as an opportunity to ensure that all sustainability claims are watertight. Here’s an overview of the CMA’s new powers and how they could affect the food sector.
What is the Digital Markets, Competition and Consumers Act 2024?
The Digital Markets, Competition and Consumers Act 2024 was introduced to UK Parliament in April 2023, building on earlier consultations aimed at enhancing consumer protection.
The Act strengthens the CMA’s powers to enforce consumer protection laws, including the ability to impose significant fines of up to 10% of global turnover—similar to the penalties seen in GDPR.
The Act covers a wide range of issues, from misleading claims to unfair commercial practices, and provides the CMA with the authority to act quickly and directly, without needing to take businesses to court.
Does the Digital Markets, Competition and Consumers Act 2024 Cover Greenwashing?
Not explicitly, but greenwashing still needs to be on businesses’ radar. The Act doesn’t specifically mention greenwashing, as the government has clarified that such claims fall under broader misleading practices. The CMA’s immediate enforcement priorities are expected to focus on the most serious consumer issues, such as false advertising or aggressive sales tactics.
However, the CMA has shown a strong interest in tackling greenwashing. For example, it issued greenwashing compliance guidance for the fashion sector and investigated Unilever for overstating environmental claims. While greenwashing isn’t directly addressed in the Act, it will likely be scrutinised under the broader misleading practices rules.
What Penalties Could Food Businesses Face if the CMA Investigates Greenwashing?
If the CMA investigates greenwashing, businesses could face penalties of up to 10% of global turnover. As regulatory lawyer Katrina Anderson explained to The Grocer:
“Enforcement could take the form of civil fines of up to 10% of turnover, or more severe penalties, including criminal prosecution or undertakings (legally binding promises to change business practices).”
For food businesses with a global footprint, this could result in fines amounting to hundreds of millions of pounds if found in breach of consumer protection laws.
What Should UK Food Businesses Do Ahead of the Digital Markets, Competition and Consumers Act 2024?
Given the CMA’s past actions on greenwashing, food businesses should be proactive in reviewing and substantiating their sustainability claims. Now is the time to ensure that all claims are credible, clear, and in full compliance with the Green Claims Code.
What is the Green Claims Code?
The CMA’s Green Claims Code offers guidance on how to make accurate and substantiated environmental claims. While it’s not a legal requirement, following the code will help businesses avoid misleading statements that could violate consumer protection laws.
Key principles include:
✔ Truthful and accurate claims – Avoid exaggeration or vague language. Claims like “eco-friendly” or “sustainable” must be backed by evidence.
✔ Clear and unambiguous messaging – Consumers must understand exactly what is being claimed. For example, a product claiming "50% lower emissions" must explain what it is being compared to and how the reduction was achieved.
✔ No omission of key information – Claims should reflect the full product lifecycle, not just positive aspects. For example, if a product is "made with recycled materials," clarify the percentage and which parts of the product are recycled.
✔ Fair and meaningful comparisons – If comparing to an industry standard, the basis for comparison must be transparent. A claim of a 50% carbon reduction must reference a recognised baseline.
✔ Robust substantiation – Claims must be backed by verifiable data. The CMA has flagged unverified green branding (e.g., leaf symbols, green packaging) as potentially misleading.
Don’t Neglect Internal Training
Ensure your teams—from marketing to compliance—understand and follow the Green Claims Code. Read our guide to the Green Claims Code here.
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Want to ensure your sustainability claims are compliant and protect your business from costly fines?
With Foodsteps Carbon Labels and FoodStories, you can confidently communicate, back up your environmental claims, and stay aligned with the Green Claims Code.
Learn more about our solutions here.
