Unilever is under investigation over claims it is misleading customers by exaggerating how ‘green’ its products are.
The FTSE 100 consumer goods giant, whose brands include Dove soap, Magnum ice-cream and Lynx deodorant, is facing a probe by the Competition and Markets Authority (CMA) into so-called ‘greenwashing’.
The investigation is a major embarrassment for Unilever, which is well-known for brandishing its woke credentials.
It has claimed its Hellmann’s mayonnaise serves a ‘purpose’ beyond adorning salads and sandwiches while it has also suggested its Lux soap can help women rise above misogyny.
This has led to criticism in some quarters, not least from investors, with fund manager Terry Smith last year saying it has ‘lost the plot’ over its focus on social issues.
![Unilever, whose brands include Dove soap and Lynx deodorant is facing a probe by the Competition and Markets Authority into 'greenwashing'](https://topnews.media/wp-content/uploads/2023/12/78880543-12856201-image-a-2_1702408380148.jpg)
Unilever, whose brands include Dove soap and Lynx deodorant is facing a probe by the Competition and Markets Authority into ‘greenwashing’
And its do-good approach has put the company in the crosshairs of regulators.
CMA chief executive Sarah Cardell said: ‘More and more people are trying to do their bit to help protect the environment, but we’re worried many are being misled by so-called ‘green’ products that aren’t what they seem.
‘So far, the evidence we’ve seen has raised concerns about how Unilever presents certain products as environmentally friendly.
‘We’ll be drilling down into these claims to see if they measure up. If we find they’re greenwashing, we’ll take action.’
A Unilever spokesman said: ‘We are surprised and disappointed with the CMA’s announcement and refute that our claims are in any way misleading.
We will continue to co-work with the CMA and fully comply with advance requests for information.’
The regulator is stepping up scrutiny of companies that may be exaggerating their green credentials in an attempt to woo climate-conscious consumers, as well as attracting billions of dollars from environmentally focused investor funds.
The CMA launched a wider probe in January, joining regulators in the US and Europe as they crack down on potentially false environmental, social and governance-related (ESG) claims made by companies.
The CMA will look at how ‘green claims’ made by Unilever stack up and said it was concerned about ‘the use of vague and broad claims, unclear statements around recyclability, and natural looking images and logos’.
Images such as ‘green leaves’ may mislead consumers into thinking certain products are more eco-friendly than they actually are, it said.
The probe is likely to be particularly embarrassing for former boss Alan Jope who four years ago warned that ‘woke-washing is beginning to infect our industry’ as he took aim at firms that do not ‘walk the talk’ on ethical points.
Unilever is now facing an investigation into the very thing Jope spoke out against.
Danni Hewson of broker AJ Bell said: ‘A huge amount of money is spent on household goods every year and whilst people want to do their bit, they don’t want to be taken for a ride – especially if they’ve been prepared to shell out a little extra in order to do the right thing.’