Competition watchdog launches 'greenwashing' probe into Marmite and Lynx maker Unilever

The competition watchdog is to launch a probe into consumer goods giant Unilever, to find out whether some of its claims are “greenwashing”.

The Competition and Markets Authority (CMA) began looking into  potential greenwashing in the fast-moving consumer goods sector, worth £140 billion, in January.

Today, it said the Marmite-to-Lynx giant has made a number of claims that “appear vague and broad, and may mislead shoppers regarding the environmental impact of those products”. In addition, it said some of Unilever’s claims are “ presented in a way that may exaggerate how 'natural' the product is, and so may create an inaccurate or misleading impression”.

The CMA also highlighted the use of imagery like green leaves, which it said could mislead consumers about the environmental impact of certain goods.

Sarah Cardell, Chief Executive of the CMA, said: “Essentials like detergent, kitchen spray, and toiletries are the kinds of items you put in your supermarket basket every time you shop. More and more people are trying to do their bit to help protect the environment, but we're worried many are being misled by so-called 'green' products that aren't what they seem.

"So far, the evidence we've seen has raised concerns about how Unilever presents certain products as environmentally friendly. We'll be drilling down into these claims to see if they measure up. If we find they're greenwashing, we'll take action to make sure shoppers are protected."

Unilever has been criticised for its efforts to market its products using environmental and social factors. Last year,  top-10 shareholder Terry Smith criticsed then-boss Alan Jope’s focus on the “purpose” of Unilever brands. 

“A company which feels it has to define the purpose of Hellmann’s mayonnaise has in our view clearly lost the plot,” he wrote.

The CMA has contacted Unilever and will set out its concerns in writing later today.

A Unilever spokesperson said: “We are surprised and disappointed with the CMA’s announcement and refute that our claims are in any way misleading.

“Unilever is committed to making responsible claims about the benefits of our products on our packs and to these being transparent and clear, and we have robust processes in place to make sure any claims can be substantiated.