The move is in response to the growing number of products and services being marketed as ‘environmentally friendly’ or ‘green’, as awareness of environmental issues increases.

In 2019, UK consumers spent £41bn a year on ethical goods and services – almost four times as much as people spent two decades ago.

The CMA is concerned that this surge in demand for green products and services could incentivise some businesses to make misleading, vague or false claims about the sustainability or environmental impact of the things they sell.

Examples of misleading behaviour could include:

• exaggerating the positive environmental impact of a product or service
• using complex or jargon-heavy language
• implying that items are eco-friendly through packaging and logos when this is not true

The CMA is looking across a wide range of sectors, but it is likely to focus on those industries where consumers appear most concerned about misleading claims. These include textiles and fashion, travel and transport, food and beverages, beauty products, and cleaning products.

Andrea Coscelli, CMA chief executive, said: “We know that many businesses will be looking for ways to reduce their carbon footprint and we strongly support this, but the claims they make must not mislead consumers in the process. It’s important that people can easily choose between those who are doing the right thing for the environment and those who are not, so that businesses genuinely investing in going green can be properly rewarded by their customers.”

Rocio Concha, Which? director of advocacy, said: “Our research has shown consumers are increasingly concerned about their environmental impact and want to make more sustainable choices, so it is vital they have reliable information to help them make the right decisions. It is good to see the CMA stepping in to investigate the types of green claims products and services make, strengthen guidance and clamp down on misleading practices.

“Which? is committed to giving consumers who want to reduce their environmental impact greater confidence to help them make sustainable choices and to working with manufacturers and policymakers to ensure consumers have reliable information and a wide range of sustainable products available.”