The Competition and Markets Authority (CMA) has published a new a set of key principles to help businesses avoid greenwashing when promoting heat pumps, biomass boilers, solar panels, and home insulation.
The guide – titled Marketing green heating and insulation products: Consumer law compliance advice for businesses – aims to help any business involved in the marketing of green heating or insulation products better understand and fulfil their obligations under consumer protection law.
The advice comes as experts warn that as many as three million heat pumps will need to be fitted in homes across the country over the coming Parliament if the UK is to meet its statutory climate targets, requiring a huge acceleration in the current installation rate.
With tens of millions of UK homes still reliant on carbon intensive oil or fossil gas boilers to heat their homes, clean tech firms have sought to ramp up their marketing and consumer offer in order to encourage faster uptake of heat pumps, solar panels, and other technologies.
However, the rapid expansion of the sector brings with it the risk of marketing claims that are deliberately or unintentionally exaggerated, and the CMA said it has found some evidence of business practices from within the green heating and insulation sector that could potentially mislead consumers.
In particular, a recent report flagged how headline price information – including how some businesses advertise consumers’ eligibility for government grant schemes – and product claims found on some firms’ websites and marketing channels were key areas of concern.
As such, the new guidance provides advice on how businesses can avoid the risk of greenwashing on websites, on social media, and through online adverts, blogs, and advertorials, as well as on posters and sales brochures. It also covers claims made in person or over the phone to prospective customers.
The CMA urges business to ensure prices highlighted for heat pumps and other technologies provide a realistic indication of what people are likely to pay for products, including the cost of any enabling works and other interventions that consumers are likely to need.
Moreover, the guide explains how headline costs should present any important qualifications clearly and prominently as close to the headline price as possible and companies should carefully explain potential availability of government funding as this could significantly influence a consumer’s assessment of affordability.
Finally, companies are warned they must not mislead consumers about pricing if products are offered as part of a package of goods and services.
When it comes to making green claims about home heating and insulation products, the CMA warns statements must comply with consumer protection law, which includes a requirement not to mislead people.
First and foremost, the watchdog’s guidance states “if you can’t back it up, don’t say it”, adding that claims must not create a false impression and should be underpinned by documentary evidence, credible sources of information, facts and figures.
It also advises companies should endeavour to explain claims in a clear and comprehensive manner and must not omit important information that may help a customer make an informed decision.
The guidance also cautions that companies must be careful when using claims such as “save up to 97 per cent off your bills” to ensure they are realistic and are not over-stating potential benefits.
Keep up to date with all the latest green business news by signing up to the free Daily and Weekly BusinessGreen Newsletters.
This post was originally published on 3rd party site mentioned in the title of this site
