Netherlands: H&M and Decathlon to remove sustainability labels from

products following investigation by regulator into potentially

misleading claims

Fashion retailer H&M and sporting goods chain Decathlon have made commitments to the
Netherlands Authority for Consumers and Markets (ACM) to remove sustainability-related
labels from their products and websites, and to improve the use of sustainability claims in the
future, following an investigation by the Dutch regulator.
In a statement by ACM about the commitments, the regulator said that H&M and Decathlon
have also agreed to provide donations of €400,000 and €500,000, respectively, to sustainable
causes, “to compensate for their use of unclear and insufficiently substantiated sustainability
claims.”
The announcement comes as regulators worldwide are increasingly focusing on potentially
misleading sustainability claims made by companies, particularly in the fashion and clothing
sectors. The UK’s Competition and Markets Authority (CMA), for example, recently said that
it is investigating fashion retailers ASOS, Boohoo and George at Asda, over eco-friendly and
sustainability claims, as part of its broader greenwashing investigation into whether consumers
are being misled by the sustainability claims in the marketing of products and services...
In its investigation, ACM found that H&M uses sustainability claims such as “Conscious” and
“Conscious Choice,” without explaining what they mean, or providing a description of the
sustainability benefits of the products. Additionally, ACM pointed out several practices by the
company in which it appears to make sustainability claims about products that may incorrectly
give the impression of their sustainability benefits, or guaranteeing that a specific product is
made with sustainable materials.
Similarly, Decathlon was found to use the “Ecodesign” sustainability label without specifying
the benefits behind the claim, and to provide insufficient information about its “Environmental
labelling system.” ...
ESG Today reached out to H&M for commentary on the regulator’s findings and the company’s
new commitments. The company provided the following statement:
H&M has taken note of the concerns raised by the Netherlands Authority for Consumer &
Markets (“ACM”) regarding its sustainability communications online in the Netherlands. We
acknowledge that the information on sustainability on our website could have been provided
more clearly and more comprehensive. Changes are being made through which we commit to
better informing our customers about the composition of our products and thus improving our
sustainability communications. Moving forward, it is our aim to do better in sharing more
comprehensive and elaborate information about our sustainability efforts. We highlight that the
concerns raised by the ACM have not been about providing false information. H&M
continuously undertakes measures regarding its operations to maintain fully compliant with
applicable laws and regulations and hopes that through its open and interactive dialogue with
the ACM, it can realize clearer sustainability communication in the future.
Transparency, also regarding product information, has always been a cornerstone of our
sustainability strategy. We have been committed to increasing our level of transparency for
many years. It allows our customers to make informed purchasing decisions. Today, clear legal
frameworks around sustainability communication are lacking. In order to create progress, both
H&M as a company and the industry need to start taking collective action now. As a company,
H&M is committed to learn and adapt.
1- What specific commitments did H&M and Decathlon make to the Netherlands
Authority for Consumers and Markets (ACM)?
2- Explain the donations agreed upon by H&M and Decathlon as mentioned in the
statement. Why, according to you, did they agree to provide these donations?
3- According to the provided information, why are regulators worldwide increasingly
focusing on sustainability claims made by companies, especially in the fashion and
clothing sectors?
4- Provide an example of another regulatory investigation mentioned in the text.
What companies are involved in that investigation, and what is the focus ?
5- Summarize the greenwashing practices identified by ACM in H&M's
sustainability claims.