Raluca Anghel, the Natural Diamond Council’s Head of External Affairs and Industry Relations, dives into the latest legislative updates shaping the jewellery and watch industry.
The UK Advertising Standards Authority has tightened rules on environmental claims in ads, aligning with the 2021 Green Claims Code. Advertisers must ensure claims are truthful, clear, and substantiated, avoiding unqualified terms like “net zero” or “carbon neutral” without explanation. Ads should reflect the full life cycle of the product or service and not omit important details. Even technically accurate claims must avoid misleading consumers about environmental benefits, and comparisons must be fair and meaningful. These measures aim to prevent greenwashing and promote transparency and social responsibility in advertising.
Other markets have had a similar approach. The Advertising Standards Council of India (ASCI) has issued in January 2024 its guidelines to prevent false pro-environment claims. These are further supported by the Indian Central Consumer Protection Authority in their latest Guidelines for ‘Prevention and Regulation of Greenwashing and Misleading Environmental Claims’ of October 2024. The Federal Trade Commission in the United States ran a public consultation last year confirming the need to update their Green Guides.
In the UK, businesses must comply with obligations under consumer protection law when making environmental claims. In protecting consumers from misleading environmental claims, consumer protection law also protects businesses from unfair competition. From a marketing point of view, the Advertising Standards Authority recently shared advertising guidance on environmental claims based on the updated Advertising Codes of the Committee of Advertising Practice and Broadcast Committee of Advertising Practice .
They are aligned with the 2021 Green Claims Code of the Competition and Market’s Authority. The Advertising Codes have rules to ensure ads are not misleading. These rules apply to ads that feature environmental claims along with other rules that ensure ads are socially responsible. Key elements to consider when placing ads: Ads are likely to mislead if the basis of the claim is not clear or if they omit material information. Ads should avoid using unqualified “carbon neutral”, “net zero” or similar claims.
Information explaining the basis for these claims helps consumers’ understanding, and such information should therefore not be omitted. Environmental claims must be based on the full life cycle of the advertised product or service, unless the advertisement states otherwise, and must make clear the limits of the life cycle. Even where claims can be substantiated or are technically correct, ads must take care not to mislead consumers about the environmental benefit of a product or service.
Brief summary:
- claims must be truthful and accurate
- claims must be clear and unambiguous
- claims must not omit or hide important relevant information
- comparisons must be fair and meaningful
- claims must consider the full life cycle of the product or service
- claims must be substantiated
Disclaimer: The information in this post does not constitute legal advice. Any information provided is intended to explain the law in general terms. You are advised to seek independent legal advice to ensure legal compliance as required for your type of business and geographical location.
