In brief
- The ASA has ruled that ads from three major fashion brands did not comply with the CAP Code for containing misleading environmental claims. All three brands used the word "sustainable" to promote their products. Such broad claims must be qualified and/or substantiated, even if an ad is subject to character limits.
- The ASA refers to guidance by the Competition and Markets Authority (CMA) on environmental claims in the fashion retail sector, demonstrating its role as a compliance partner of the CMA.
- The ads were discovered by the ASA's Active Ad Monitoring system which uses AI to proactively survey ads in specific sectors.
Using the word "sustainable" in your advertising? Three rulings this month from the Advertising Standards Authority (ASA) against retail heavyweights Nike, Superdry and Lacoste demonstrate exactly why brands must approach green claims with extreme care.
The ads were all paid-for sponsored ads on Google, which stated:
"Nike Tennis Polo Shirts – Serve An Ace With Nike […] Sustainable Materials"
"Superdry: Sustainable Style. Unlock a wardrobe that combines style and sustainability […]"
"Lacoste Kids – Sustainable & elegant clothing"
The rulings
These rulings form part of the ASA's wider investigation into environmental claims in the retail fashion sector ─ a clear signal that this is a priority enforcement area.
The ASA applied CMA guidance which states that broader, general or absolute claims such as "sustainable" are likely to mislead consumers, as their meaning is ambiguous and unclear. Consumers naturally assume that products described as "sustainable" have a positive environmental impact throughout their full life cycle, or at the very least no adverse impact.
The ASA found that none of the ads included qualifying information to define "sustainable", leaving the term ambiguous and unclear. In its response, Nike argued that sponsored ads have character limitations, confined to a maximum of 30 characters for the headline and 90 characters for the body text. However, the ASA was unequivocal that this is no defence. If a claim cannot be properly qualified within the space available, it should not be made.
Whilst the brands' evidence showed that the products in question had certain environmental benefits (e.g. Nike tennis polo shirts contained at least 75% recycled materials, such as recycled polyester, and that recycled polyester resulted in a reduction in CO2 compared to non-recycled polyester), they were unable to demonstrate that their products had no detrimental environmental impact across their entire life cycle. This gap between partial evidence and absolute claims proved significant and all three of the ads were considered misleading and in breach of the CAP Code.
Why this matters
We previously reported on the CMA guidance on environmental claims in the fashion retail sector, published following its extensive investigation into greenwashing practices across the industry.
The ASA explicitly relied on the CMA guidance in all three rulings, demonstrating that regulators are working in tandem to target what they perceive as greenwashing. This means fashion brands face a two-pronged risk: ASA rulings that ban misleading ads and, where the CMA sees fit to intervene, potential CMA enforcement action with fines of up to 10% of global turnover.
Looking forward
The ASA's Active Ad Monitoring system, which uses AI, detected these ads, meaning advertisers are now under even greater scrutiny. The takeaway is clear: broad environmental claims like "sustainable" must be qualified and substantiated, regardless of character limits.
To help navigate the rules on environmental claims, we've developed two practical resources:
- Our Greenwashing Compliance Guide provides insight into the regulatory framework, including the CMA's powers to impose fines of up to 10% of global turnover for misleading environmental claims, and practical steps to avoid greenwashing pitfalls.
- Our Guide to Green Reforms in Retail examines the key legislative measures impacting the full product lifecycle, including the EU's Ecodesign for Sustainable Products Regulation and Green Claims Directive, with practical preparation steps for your business.