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The companies say they will remove sustainability-related labels from their products and pay between €450,000-€500,000 to sustainable causes, following an investigation by the Dutch regulator.
Fashion chain H&M and sporting goods retailer Decathlon have promised to remove sustainability-related labels from their websites and products following an investigation by Dutch regulator, Netherlands Authority for Consumers and Markets (ACM).
The investigation found that both brands had used generic terms such as ‘eco design’ and ‘conscious’ in their product marketing, without giving clear explanations of either term, nor their sustainability benefits.
In a statement, the ACM said that H&M and Decathlon have also agreed to provide donations of €500,000 and €400,000 respectively to sustainable causes, “to compensate for their use of unclear and insufficiently substantiated sustainability claims”.
The announcement comes as regulators around the world increase their focus on potentially misleading sustainability claims – known as greenwashing – made by companies. The UK’s Competition and Markets Authority (CMA), for example, recently announced that it will be investigating sustainability claims made by fashion retailers BooHoo, George at Asda and ASOS, as part of a wider investigation into consumer greenwashing.
In a statement, ACM board member Cateautje Hijmans van den Bergh, said: “Consumers that wish to make sustainable choices must be able to have confidence in the veracity of the claims that businesses make on their products or websites.
“We are pleased to see that these companies have acknowledged that they should have informed consumers more clearly about the sustainability aspects of their products, and that they will adjust various sustainability claims and their substantiations. They will also take measures to inform their customers better in the future.”
Ocki reached out to H&M for comment on ACM’s findings, and was given the following statement:
H&M has taken note of the concerns raised by the Netherlands Authority for Consumer & Markets (ACM) regarding its sustainability communications online in the Netherlands. We acknowledge that the information on sustainability on our website could have been provided more clearly and more comprehensive. Changes are being made through which we commit to better informing our customers about the composition of our products and thus improving our sustainability communications.
Moving forward, it is our aim to do better in sharing more comprehensive and elaborate information about our sustainability efforts. We highlight that the concerns raised by the ACM have not been about providing false information. H&M continuously undertakes measures regarding its operations to maintain fully compliant with applicable laws and regulations and hopes that through its open and interactive dialogue with the ACM, it can realize clearer sustainability communication in the future.
Transparency, also regarding product information, has always been a cornerstone of our sustainability strategy. We have been committed to increasing our level of transparency for many years. It allows our customers to make informed purchasing decisions. Today, clear legal frameworks around sustainability communication are lacking. In order to create progress, both H&M as a company and the industry need to start taking collective action now. As a company, H&M is committed to learn and adapt.
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