CMA gains new powers to crack down on greenwashing

The Competition and Markets Authority (CMA) is set to clamp down on misleading environmental claims as new enforcement powers come into effect.

Under the new Digital Markets, Competition and Consumers (DMCC) Act, which came into force on 6 April 2025, the regulator can now directly fine companies for consumer law breaches without court proceedings.

Firms that provide goods and services to UK consumers can potentially face penalties of up to 10% of global turnover for misleading practices, including greenwashing.

Which businesses are implicated?

• The DMCC Act applies to any businesses selling online in the UK.
• It is designed to catch any firm (regardless of size) which engages in behaviour likely to cause the average consumer to make a “transactional decision” that they would not have otherwise taken, for example, through misleading actions or omissions.

How will the DMCC Act be enforced?

The CMA will be able to bring enforcement actions (and potentially fines) against:

• Unsubstantiated green claims
• Claims that overstate sustainability credentials
• Firms that provide only a one-sided picture of their environmental commitments

The CMA’s expanded remit follows years of concern over false or exaggerated green claims. In recent years, it has issued guidance for sectors, including fashion and retail, and launched a number of high-profile investigations, including one into Unilever’s product labelling.

The CMA previously relied on securing company commitments or lengthy court processes to address breaches. Now, under the DMCC Act, it can act faster and more decisively.

Stay ahead of greenwashing risks

With the CMA’s new enforcement powers in effect, it is more important than ever businesses ensure their green claims are accurate, substantiated and in line with the CMA’s Green Claims Code.

At Content Coms, we are committed to helping businesses communicate transparently and authentically. As a B Corp Certified organisation, we aim to ‘teach not preach’ and empower brands to speak honestly and with integrity.

You can find out more about how to build trust and avoid greenwashing missteps by downloading our free Anti-Greenwash Playbook.