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Wednesday, May 13, 2026

Greenwashing and the consequences if your business is found guilty - Lexology

If an organisation falsely bolsters its environmental track record for commercial benefit and glosses over unsubstantial sustainability efforts, it could be found guilty of greenwashing tactics.

If there’s little or no evidence to back up marketing claims, the repercussions of fictitious marketing can imperil customer trust, damage brand reputation, and detract attention from true environmental clean-up efforts.

If an organisation is found guilty of fronting its campaigns with baseless environmental claims, it could face dire repercussions and lead to public outcry. ?

Summary

  • ‘Greenwashing’ – the term was coined to address the act of misleading customers by making false or unsubstantiated claims about an environmental benefit.
  • A CMA global review found that 40% of online green claims could be misleading consumers
  • In response to this, the CMA introduced the Green Claims Code to govern how businesses use green claims in advertising
  • This is in addition to existing consumer law and guidelines set out by the Trading Standards Service, Advertising Standards Authority, and sector bodies

Greenwashing – distinguishing between marketing lures and true claims

As businesses and individuals around the world embark on a collective mission to protect the environment, preserve natural resources, and drive down carbon emissions, ingenuine commitments to save the planet can be detrimental to global targets and contradict the eco-conscious beliefs of customers.

Using environmental...



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