Unilever probed by competition regulator over environmental claims

By Steve Goldstein

Britain's competition regulator on Tuesday said it's opened a probe into the environmentally-friendly claims put forward by household products giant Unilever, the latest example of corporate green claims getting scrutinized by regulators.

The U.K. Competition and Markets Authority said it is concerned that Unilever may be misleading shoppers about the environmental impact of its products, such as Dove soap and Lynx deodorant, and may be exaggerating how natural they are.

The regulator even took aim at Unilever's use of colors and imagery, such as green leaves, that "may create the overall impression that some products are more environmentally friendly than they actually are."

Unilever, in a statement, said it was "surprised and disappointed" by the announcement and denied "that our claims are in any way misleading."

For example, Unilever said it uses the on-pack recycling label to tell consumers how to dispose of packaging, and it's a founding signatory of the U.K. plastics pact.

Unilever's London-listed shares (UK:ULVR) (UL) edged 0.3% higher but have dropped 9% this year.

Last year, the regulator took aim at the environmental claims made in the fashion business.

In the U.S., the Securities and Exchange Commission fined a Deutsche Bank subsidiary, DWS (XE:DWS), for making misleading statements over ESG factors.

The U.K. Advertising Standards Authority last week banned advertisements from airlines Air France (FR:AF), Lufthansa (XE:LHA) and Etihad over environmental claims.

-Steve Goldstein

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12-12-23 1015ET

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