Misleading environmental claims have long been a murky part of food marketing – but the stakes are about to rise sharply. From this month (April 2025), the UK government will have new powers to fine companies that mislead consumers with their sustainability credentials.
The Competition and Markets Authority (CMA) will be able to impose penalties of up to 10% of a company’s worldwide turnover, which when you consider the revenue of leading confectionery blue chips means the numbers could be huge.
Greenwashing is a “widespread” problem
“We regularly identify examples of greenwashing from both manufacturers and retailers,” says Lily Roberts, campaign advisor at campaigning group Changing Markets Foundation. Greenwashing claims identified include vague and misleading terms like “eco”, “carbon neutral” and “sustainable”, which are often used without clear evidence or explanation.
The group has identified 65 food companies it alleges to have made misleading claims.
“Packaging has become a prime space for green claims, with products often labelled ‘recyclable’ despite only being accepted through hard-to-access supermarket take-back schemes,” says Roberts. According to 2024 findings from the Environmental Investigations Agency, much of this packaging isn’t actually recycled as promised, and in many cases, ends up being incinerated or sent to a landfill instead.
Companies also often rely on carbon offsetting to justify “carbon neutral” or even “climate positive” claims. “These trends reflect an evolution away from product-specific sustainability to broader, often less transparent corporate claims,” Roberts adds.
Eroding rather than enhancing trust
Misleading environmental campaigns have a substantial effect on consumer behaviour and purchasing decisions. “Greenwashing chips away at consumer trust, making it harder for genuinely sustainable products to stand out,” says Roberts. “It misleads well-meaning shoppers into rewarding companies with poor environmental records and distorts the market signals that should be driving real emissions cuts.”
According to the Changing Market Foundation’s research, consumers are willing to pay more for products they believe are sustainable. “And companies are cashing in on that goodwill without backing it up with meaningful environmental action,” says Roberts.
UK crackdown on greenwashing claims
The UK government’s Competition and Markets Authority (CMA) recently introduced new direct enforcement powers. Coming into force on April 6, 2025, the new regime will see the CMA impose new penalties on companies that breach consumer protection laws without needing to send businesses to court. It will also be able to take direct action to tackle breaches through fines and redress measures. Where a breach is found, the CMA’s penalties can be significant, amounting to as much as 10% of a company’s global annual turnover.
Misleading environmental claims, often called greenwashing, are prohibited under these laws. Consumer protection legislation ensures that the information companies communicate to consumers is accurate and credible.
Imposing fines in this way is expected to create impactful change and steer confectioners away from making misleading claims. “For too long, greenwashing has been a low-risk, high-reward strategy – but that should now start to change,” Roberts says.
With the threat of significant fines companies will be compelled to thoroughly vet their environmental claims before displaying them on packaging. “It levels the playing field for those making genuine sustainability efforts and sends a clear signal that regulators are serious about cracking down on empty green promises,” Roberts adds.
