Zalando to remove misleading sustainability claims following intervention of European authorities
The European consumer authorities have confronted German online store Zalando with its use of misleading sustainability claims. For example, Zalando used the term ‘sustainability’ as well as visual claims, such as leaves to indicate the sustainability benefits of its products. Starting 15 April 2024, these sustainability claims will be removed from the website, and Zalando has made commitments to provide clear and specific information about the sustainability benefits of its products.
During its own investigation into sustainability claims in the clothing industry, the Netherlands Authority for Consumers and Markets (ACM) filed a request for enforcement with the German consumer authority asking it to take enforcement action against Zalando. ACM’s findings were taken into account in the coordinated action.
Cateautje Hijmans van den Bergh, Member of the Board of ACM, says: “This joint action with our fellow European authorities is important because it prevents consumers from being misled. Consumers have high expectations when general claims such as ‘sustainable’ are used. Businesses cannot pretend to be greener than they really are.”
What do Zalando’s commitments entail?
Zalando has made the following commitments:
- Removing the sustainability flags from the entire website.
- Removing all misleading visual claims (icons) that were displayed next to the products, such as leaves or trees.
- No longer using the term ‘sustainability’ and other unjustified terms that suggest sustainability benefits. Zalando will provide clear information about specific benefits, such as presenting the percentage of recycled materials in products.
- Removing the terms ‘sustainability’ and visual claims from the search filter. Consumers will now be able to filter and select products on the basis of specific product characteristics.
- Giving clear and specific information about the sustainability benefits of products on the product pages themselves.
- If Zalando makes sustainability claims, it is about significant sustainability benefits.
- Replacing the general sustainability page with two new pages: one with more information about product standards and another with information about Zalando’s sustainability strategy.
The changes resulting from this action are in line with the Guidelines regarding Sustainability claims that ACM published in June 2023. Sustainability claims must be clear and specific to prevent consumers from being misled.
The next steps
Zalando will submit a report in which it explains how it has implemented these commitments. On the basis of this report, the European authorities will assess whether Zalando complies with the commitments, and if not, they will enforce compliance through formal enforcement actions.
European cooperation
The European consumer authorities and the European Commission work together if businesses are active in multiple EU countries, to ensure compliance with the rules in the entire European Union. In this case, Germany, Denmark, Norway, and Sweden were in the lead, as Zalando’s headquarters is based in Germany, among other reasons. The coordinated action was launched in April 2022.
ACM’s investigations into sustainability claims in the clothing industry
In 2022, ACM conducted investigations into sustainability claims of six companies in the clothing industry. ACM launched its investigations into the Netherlands-based companies H&M and Decathlon regarding compliance with the rules in the Netherlands, and these investigations resulted in commitment decisions. The other four clothing companies were based outside the Netherlands. That is why ACM requested the relevant authorities to take enforcement action against those companies. This has been agreed upon by the consumer authorities. In that context, ACM filed a request for enforcement against Zalando with the German consumer authority, as Zalando’s headquarters is located in Germany. This request has been taken into account in the coordinated action against Zalando.
ACM and sustainability
ACM ensures that markets work well for people and businesses, now and in the future. Sustainable products and consumption are important in the transition to a more sustainable society. ACM responds to this with its oversight over sustainability claims. Consumers must be able to make sustainable choices with confidence, and businesses that undertake sustainability efforts must be protected against businesses that compete unfairly by using misleading claims.