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Unilever is under scrutiny for potentially misleading “greenwashing” claims in its advertising. This investigation is being conducted by the Competition and Markets Authority (CMA), rather than the usual UK industry regulator, the Advertising Standards Authority (ASA)
The CMA is currently examining food brand owners accused of increasing their profits at the expense of consumers. Unilever’s brands include Dove, Marmite, Knorr, Comfort, Magnum, Hellmann’s, and Domestos.
The CMA expressed concerns about how Unilever presents certain products as environmentally friendly. The CEO stated that initial evidence raises questions about the accuracy of these claims. If the investigation confirms greenwashing, the CMA plans to take action to protect consumers.
Unilever responded by expressing surprise and disappointment with the CMA’s investigation, denying any misleading claims. The company emphasized its commitment to responsible marketing and transparency, stating that it has robust processes in place to substantiate any claims. Unilever pledged to cooperate fully with the CMA’s requests.
This development adds to the challenges Unilever is facing, following criticism of its “purpose-driven” marketing and the departure of its CEO after a failed acquisition attempt. If the CMA rules against Unilever, it could lead to significant changes in its marketing strategies.
The involvement of the CMA has also raised concerns among other advertisers and agencies, particularly as many UK consumers have grown skeptical of large companies that have increased profits during the cost of living crisis. With Unilever raising some of its prices significantly, its ads are now facing increased scrutiny.