Green Claims Face End-to-End Accountability Under New CMA Guidance

Key Takeaways

• Responsibility Runs Through The Supply Chain: Retailers, brands, manufacturers, and suppliers can all be liable for misleading environmental claims.
• Verification Is Essential: Claims must be backed by evidence, even where supporting data sits with another business.
• Repeating A Claim Can Create Exposure: Simply selling or promoting a product may amount to repeating a misleading green claim.
• Intent Does Not Matter: Unintentional or “innocent” claims can still breach consumer protection law.
• Enforcement Powers Are Strong: The CMA can now impose fines and order redress directly under the DMCC Act.

Deep Dive

In new guidance published on 22 January 2026, the Competition and Markets Authority set out detailed expectations for how consumer protection law applies to green claims across complex supply chains. The overall message is that environmental claims must be accurate, verifiable, and clear to consumers and responsibility does not stop at the point where a claim was first made.

The guidance responds to mounting questions from businesses across multiple sectors about liability for environmental claims that originate upstream but follow products all the way to the consumer. With supply chains involving raw material suppliers, manufacturers, distributors, brands, and retailers, the CMA said uncertainty over “who is responsible” has become a growing risk in itself.

Green Claims And Consumer Trust

The CMA framed the guidance around a broader shift in consumer behaviour. As more people seek out products and services with lower environmental impact, businesses have responded with increasingly detailed claims about sourcing, materials, emissions, and disposal. When those claims are accurate, the Authority said, they can strengthen consumer confidence and reward genuine investment in sustainability.

But when claims are misleading, even unintentionally, they distort consumer choice and undermine fair competition. Businesses that exaggerate or misrepresent environmental benefits can gain an unfair advantage over competitors that are more cautious or transparent, weakening trust across entire markets.

The guidance builds on the CMA’s existing Green Claims Code and sits alongside advertising standards overseen by the Advertising Standards Authority, which has also issued sector-wide guidance on environmental marketing.

What Counts As “Making” A Green Claim

A key theme running through the document is that environmental claims are not limited to slogans or headline statements. According to the CMA, “making” a green claim includes what businesses say, how they say it, and what they leave out.

This covers statements on packaging, websites, and marketing materials, as well as imagery, symbols, and logos that suggest environmental benefits. It also includes omissions, such as failing to explain that a product is only recyclable under specific conditions, or that an environmental benefit depends on how the product is used or disposed of.

Crucially, the CMA said a business can be deemed to repeat a claim simply by selling or promoting a product. Where a claim is false or misleading, both the originator of the claim and downstream sellers may face liability under consumer protection law.

Liability Does Not Disappear Upstream

The guidance makes clear that responsibility for environmental claims runs through the entire supply chain. Every business involved in bringing a product to market has a role in ensuring consumers receive clear and honest information.

The CMA acknowledged that different parties often hold different pieces of evidence needed to substantiate claims. However, difficulty accessing information from suppliers or partners does not remove legal risk. Where businesses cannot verify a claim, the CMA said they should consider changing how the claim is framed — or whether it should be made at all.

In cases where a supplier cannot or will not substantiate a claim, the guidance suggests businesses may need to reassess their commercial relationship, given the exposure this creates for anyone passing the claim on to consumers.

Intent Is Irrelevant Under Consumer Law

One of the more sobering reminders in the guidance is that intent does not matter in civil enforcement. Even where a business genuinely believed a claim was accurate, an unverified or misleading statement can still breach consumer protection law.

The CMA also noted that certain breaches may carry criminal liability, while civil enforcement does not allow businesses to rely on defenses such as having taken “all reasonable precautions” or exercised due diligence. An innocent breach is still a breach.

That said, the Authority signaled that genuine efforts to comply, and proactive steps to correct claims before an investigation begins, may be treated as mitigating factors when penalties are assessed.

Stronger Enforcement Powers In The Background

The guidance sits against the backdrop of the Digital Markets, Competition and Consumers Act 2024, which came into force in April 2025. Under the Act, the CMA can determine infringements of consumer law, issue binding directions, order consumer redress, and impose fines without going to court.

When deciding whether to take enforcement action, the CMA said it will focus on practices that cause the greatest harm to consumers and markets. Factors include whether guidance has already been issued, whether businesses have adequate internal controls for approving environmental claims, and which parties in the supply chain are best placed to remedy the issue.

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