An important development is the ACM’s focus on sustainability and the prevention of greenwashing. Greenwashing may occur in what is known as ‘green cartels’, but also in the form of misleading sustainability claims of companies. In light of the increasingly important role that sustainable consumption is playing in consumers’ choices, it is important that companies make honest sustainability claims. The ACM thus protects both consumers and companies from unfair competition by companies that do not play by the rules.
For this purpose, the ACM previously published its Leidraad Duurzaamheidsclaims (Guidelines Sustainability Claims), in which it explains how it applies consumer law on unfair commercial practices with respect to sustainability claims. The Guidelines also include five rules of thumb for companies. The ACM subsequently launched investigations in three sectors: the energy sector, the clothing sector and the dairy sector. Those investigations have now produced initial results.
Energy sector
In the energy sector, the ACM investigated the sustainability claims of ten energy suppliers. In an interim conclusion, the ACM ruled that not all investigated claims were sufficiently clear and verifiable. The ACM recently accepted remedies proposed by Vattenfall and Greenchoice. Both suppliers agreed to inform consumers more clearly, in order to avoid the risk of misleading them with regard to sustainability.
Clothing sector
In the clothing sector, the ACM wrote to more than 60 companies, requesting them to critically review their sustainability claims. It then further investigated the ten largest companies. The ACM recently accepted remedies given by clothing company H&M and sportswear company Decathlon. Both companies have agreed to use clearer sustainability claims.
Dairy sector
In the dairy sector, the ACM wrote to more than 40 companies about misleading (or potentially misleading) sustainability claims. Although the investigation in this sector has not yet yielded any concrete results, the ACM will reportedly issue an update in the near future.
Interestingly, the ACM accepted the remedies proposed by energy suppliers and clothing companies to donate a sum to sustainability initiatives as ‘compensation’ (a total amount of EUR 2.3 million). This is not entirely new: in 2005, for instance, the ACM reduced the cartel fines imposed on several banks and on payment provider Interpay after they agreed to set up an innovation fund as a contribution to a (more) efficient payment system. That same year, in order to reach a settlement with the ACM (known as the NMa at the time), a number of construction companies paid a sum into a compensation fund for customers that believed to have been disadvantaged by the construction fraud.
The ACM is clearly focusing on detecting and countering greenwashing in the form of misleading sustainability claims. Investigations are reportedly pending on other companies in the three sectors referred to above, but the ACM will most likely set its sights on other sectors as well. Companies are well advised to check their sustainability claims and clarify them if necessary.
This blog has also been published in the Snelrecht section of the Mr. Online journal.
Information on dawn raids by the ACM and the European Commission can be found at invalacm.nl
