Tough new greenwashing rules: What PRs need to know about the DMCC Act

Many PRs will be used to promoting the sustainability credentials of their business or their client’s products or services. For example, weaving info about how a product’s emissions reductions are “equivalent to planting 10,000 trees” into a press release, or highlighting how a company is on track to reach its net-zero targets.  

However, thanks to new consumer protection laws which came into effect last month, PR and comms teams will need to be more vigilant when making environmental, social, and governance (ESG) claims. Following a spate of greenwashing scandals combined with the growing trend of ‘greenhushing’ (whereby companies underreport or hide information about their environmental goals/achievements) – the new Digital Markets, Competition and Consumers (DMCC) Act means businesses will face much greater scrutiny about such claims.  

The penalties could be severe. If either your firm – or your client – is found to have made an unsubstantiated or misleading environmental claim, you could face a hefty fine of either 30 per cent of global revenue or £300,000 – whichever is higher. 

With the DMCC Act currently in force, PRs and their clients will need to review any ESG-related messaging immediately. 

What is the DMCC Act and the CMA’s Green Claims Code?  

The DMCC Act is a wide-ranging piece of legislation designed to protect consumers. It came into force on 6 April 2025 and includes provisions requiring businesses to include mandatory fees in headline prices, plus bans on fake reviews.  

For PRs and comms teams, the most important regulations are those relating to misleading environmental claims, such as greenwashing/greenhushing. The DMCC Act grants the government’s competition regulator, the Competition and Markets Authority (CMA), new powers to enforce these regulations – and fine any businesses who breach them.  

To help businesses comply, the Competition and Markets Authority (CMA) has developed the Green Claims Code. It acts as a handy six-point checklist for any business which uses “green claims” to market their products/services (whether through branding, statements, logos, packaging, graphics and colours) and wish to gauge whether these assertions stand up to scrutiny.  

Many businesses are predicted to be impacted by the legislation: one CMA study of global websites found 40% of ‘green claims’ made online could be misleading consumers.  

What does the DMCC Act mean for PRs and the comms industry? 

Unfortunately, there’s always a risk PRs may end up inadvertently overstating – or even exaggerating – sustainability information when communicating ESG credentials of their business, or their clients. The increasing trend of greenhushing is also affecting the sector: 28 per cent of PR experts surveyed by Sensu Insight in 2023 said they’d been pressured by their clients into greenhushing their environmental achievements.  

The CMA states the new rules “apply to commercial practices” which include “commercial communications by a trader (a business), which are directly connected with the promotion, sale or supply of a product to consumers (any individual acting for purposes wholly or mainly outside their business).”  

It’s a definition, that, technically speaking, means PRs and comms professionals would be breaching the law and held liable if they used misleading claims in press releases/comms messaging about their clients’ products and services. 

What does my business need to do now?  

With the DMCC Act having come into force last month, businesses should start addressing this now, otherwise risk being fined.  

A good place to start is by reviewing yours and your clients’ existing and upcoming ESG messaging. Does it comply with the six principles of CMA’s Green Claims Code (see below)?  

Next, establish a reliable system to monitor any claims your or your clients’ businesses make around sustainability. PR and comms teams should contact their clients to discuss the new laws (perhaps sharing the Green Claims Code with them) and to make sure any future ESG claims are substantiated, clear and easy to understand. Can these claims also be verified with the latest data, plus scientific reports? You may also need to consult official certification bodies, who can validate any environmental stats and statements and ensure their accuracy.  

Finally, PR and comms teams should train their staff on the new regulations too, informing them about their new legal obligations. 

What are the six principles of the Green Claims Code? 

According to the CMA, all ‘green claims’ must: 

1. Be truthful and accurate: Businesses must live up to the claims they make about their products, services, brands and activities. 

2. Be clear and unambiguous: The meaning that a consumer is likely to take from a product’s messaging and the credentials of that product should match. 

3. Not omit or hide important information: Claims must not prevent someone from making an informed choice because of the information they leave out. 

4. Only make fair and meaningful comparisons: Any products compared should meet the same needs or be intended for the same purpose. 

5. Consider the full life cycle of the product: When making claims, businesses must consider the total impact of a product or service. Claims can be misleading where they don’t reflect the overall impact or where they focus on one aspect of it but not another. 

6. Be substantiated: Businesses should be able to back up their claims with robust, credible and up to date evidence.

ESG and public relations - find out more

Learn more about ESG communication by downloading the CIPR’s recently updated E, S and G guides or taking this four-part on-demand training course in your own time.
 

Christian Koch is an award-winning journalist, editor, content strategist and brand consultant.

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