In January 2026, the Competition and Markets Authority (“CMA”) released Making green claims: Getting it right, across the supply chain (the “Supply Chain Guidance”).

This guidance builds on the CMA’s Green Claims Code and provides guidance to businesses about where responsibility for making environmental claims lies across the supply chain.

In this article, we set out what the Supply Chain Guidance means for your business.

Published: 23 March 2026
Authors: Adam Flynn

What is a green claim?

Environmental claims (or green claims) include claims which suggest or create the impression that a product or service: (i) has a positive environmental impact or no impact on the environment, (ii) is less damaging to the environment than a previous version of the same product or service, or (iii) is less damaging to the environment than competing products or services.

A business can make a green claim in any form of broadcast or non-broadcast advertising, either by explicitly setting out the environmental credentials of a product, or by presenting information in a certain way (i.e. via the use of “green” logos or imagery).

How are green claims regulated in the UK?

Under the Digital Markets, Competition and Consumers Act 2024 (the “DMCC”) the CMA has direct enforcement powers to protect consumers from unfair commercial practices, such as misleading marketing, and has the power to impose fines of up to 10% of global turnover on businesses / traders that breach the DMCC.

The CMA published the Green Claims Code in 2021 to help businesses understand and comply with their obligations under consumer protection law when making environmental claims. It sets out six key principles to be aware of when making environmental claims: (i) claims must be truthful and accurate; (ii) claims must be clear and unambiguous; (iii) claims must not omit or hide material information; (iv) claims must only make fair and meaningful comparisons; (v) claims must consider the full lifecycle of the product or service; and (vi) claims must be substantiated.

The Advertising Standards Authority (“ASA”) bans ads which breach the CAP and BCAP Codes, (together, the “UK Advertising Codes”). The UK Advertising Codes are underpinned by consumer protection legislation, specifically the DMCC, and contain rules which prohibit misleading advertising and misleading environmental claims in both broadcast and non-broadcast advertising. In recent years, the ASA has released several rulings which banned misleading environmental claims across a range of sectors.

What is the key takeaway in the Supply Chain Guidance?

The CMA state that businesses across the supply chain must take steps to ensure any environmental claims made (whether directly, indirectly or by passing information from others on to consumers) are accurate and not misleading.

The CMA go on to say that a business may be deemed to be repeating an environmental claim where it stocks a product containing a claim. For example, if a manufacturer falsely or misleadingly labels a product as having an environmentally friendly characteristic, both the manufacturer and the retailer stocking that product may be liable for engaging in an unfair commercial practice.

The Supply Chain Guidance includes illustrative examples to clarify this approach to enforcement. We have summarised some of these below. The examples show that the CMA’s enforcement approach will very much be assessed on a case-by-case basis, but will in each instance consider which entity made the claim, and the processes each company in the supply chain has in place to ensure the claim is accurate (see What does the CMA expect businesses to do for further information).

Scenario 1

Situation: Misleading product information relating to the recyclability of a product is uploaded onto the retailer’s website from the brand’s online product information system. The retailer has a relationship with the brand, performs regular random checks to ensure that product descriptions are accurate, requests evidence for a selection of claims, and asks the brand to complete an annual declaration that all claims are accurate and that appropriate substantiation is held.

Enforcement: The CMA state that both the retailer and brand have a responsibility to ensure the claim is not misleading. The CMA may be more likely to prioritise action against the brand as there is potential for widespread harm from the brand’s commercial practices and the brand is better positioned to remedy the issue.

Scenario 2:

Situation: A large supermarket chain orders branded body wash which includes one ingredient that is certified organic. This organic content constitutes 10% of the ingredients of the body wash. The supermarket decides that the body wash will be marketed as part of the supermarket’s ‘environmental’ range. The range description explains that all products in the range have an organic content that is 60% or higher.

Enforcement: The CMA state that both the retailer and brand have a responsibility to ensure the claim is not misleading. The CMA is likely to focus on the commercial practices of the retailer as the retailer has marketed the product with misleading environmental credentials and is best placed to remedy the situation.

Scenario 3:

Situation: A retailer running a small store orders dish cloths from a large manufacturer, who labels the product as “compostable”. The cloths can only be composted if returned to specific stores, where they are sent for specialist processing.

Enforcement: The CMA explain that both the retailer and the manufacturer have a responsibility to ensure the claim is not misleading. The CMA explains that it may be more likely to prioritise action against the manufacturer who made the claim on the product, as the manufacturer would be best placed to inform consumers of how to dispose of the cloths to achieve the environmental benefit claimed.

Does the CMA say anything else about its enforcement approach?

According to the Supply Chain Guidance, the CMA will take various factors into account when deciding its enforcement approach, including: (i) the strategic significance of acting (i.e. the extent to which CMA action fits with the CMA’s overarching objectives and strategy); (ii) the likelihood of a successful outcome; and (iii) how substantial the positive impact of CMA intervention would be (i.e. the direct impact on consumer behaviour, or the indirect effect of deterring poor practices or improving compliance in the market).

The CMA is likely to view practices as particularly egregious where businesses should be clear about their obligations, such as in situations where guidance already exists or ASA rulings relating to a particular type of claim have already been published. Businesses that do not have processes in place to ensure the accuracy of their environmental claims (noting in the Supply Chain Guidance that claims “they make” includes claims made either directly, indirectly or by passing information from others on to consumers), or that fail to properly follow their procedures, are also likely to be a focus of CMA attention.

What does the CMA expect businesses to do?

The CMA explain that businesses across the supply chain must take steps to ensure any environmental claims they “make” (either directly or indirectly, or by passing information on to consumers) are accurate and not misleading.

Retailers

For retailers, the relevant steps may include:

• seeking robust, credible and up to date evidence (which according to the CMA may vary according to the claim, type of product, service or sector) from suppliers ahead of advertising or selling products to consumers. The CMA state that in the fashion sector, this can include final scope certificates and final transaction certificates (documents issued by an approved certification body to evidence that a facility is certified to produce products, fabrics or fibres to the relevant given standard, or that products, fabrics or fibres being shipped or received were produced to the relevant given standard)
• where obtaining evidence is not possible due to timing or confidentiality, asking for confirmation (i.e. via a self-assessment questionnaire) that suppliers or brands hold proof, or a declaration, that their claims are accurate
• reviewing claims and documents regularly to ensure product information is accurate i.e. performing random spot checks of product descriptions and requesting evidence to support a selection of claims from suppliers
• adopting additional measures when working with new suppliers, such as checking whether a change in supplier impacts any claims being mad
• maintaining regular contact with suppliers and checking for changes in the supply chain which may affect the accuracy of a claim
• considering if environmental claims are clear and whether additional information is required for consumers to understand them.

Brands selling through third parties

The CMA say that brands selling through third party retailers should ensure any claims they make are accurate, and should provide retailers with the appropriate assurances that the claims made by the brand are correct. This includes sharing underlying evidence with retailers and explaining the basis on which the brand’s environmental claims are made, or if this is not possible due to timing factors, providing a declaration that the product information is accurate.

Suppliers and manufacturers

According to the CMA, suppliers and manufacturers should provide retailers and brands with the assurance they need so they can confidently make accurate claims. This may include:

• ensuring evidence is provided to support claims and that records on product composition, testing and provenance are retained
• facilitating supply chain transparency (i.e. updating others in the supply chain if there is a change to the raw materials used
• providing assurances to others in the supply chain in a different way if product information is confidential
• not making casual claims which could be mistaken for objective environmental claims.

What does this mean for retailers in particular?

Understandably, the Supply Chain Guidance has caused concern amongst large retailers that stock a huge quantity of third-party products, many of which contain environmental claims on the packaging. Implementing every action included in the CMA’s recommended checklist for retailers would represent a substantial administrative burden for large retailers.

However, with the CMA’s newly acquired direct enforcement powers under the DMCC, retailers can ill afford to be complacent, and should take note of the examples and checklists contained in the Supply Chain Guidance. This is particularly important given that the CMA recently imposed its first significant fixed penalty of £473,000 under the new DMCC direct enforcement regime.

On that basis, in relation to claims on own-brand products, we suggest that retailers:

• ensure any environmental claims can be substantiated prior to the publication of the claim, and ensure documentary evidence is held in relation to each claim
• ensure those responsible for marketing compliance are aware of the principles established in the CMA’s Green Claims Code, in ASA rulings and in CAP guidance on environmental claims, via the provision of staff training
• actively monitor and ensure staff are aware of any ASA rulings published in relation to environmental claims
• implement an ‘environmental claims policy’ explaining the steps that must be taken by staff prior to making environmental claims on own brand products.

Regarding third-party products stocked and sold by retailers, we recommend that retailers implement the CMA’s recommended checklist in the following, proportionate way:

• include assurances as to the accuracy of any environmental claims appearing on third-party products in contracts with third parties
• seek an annual declaration that all environmental claims on the third parties’ products are true and accurate
• perform random spot checks of environmental claims and request evidence to support a selection of environmental claims from third-party suppliers
• seek additional assurances and undertake additional spot checks when working with new suppliers.