Businesses Face Crackdown on Misleading Product Claims

Businesses are facing increased scrutiny over the accuracy of product descriptions, performance claims and marketing information as UK regulators strengthen enforcement against organisations making statements that cannot be supported by reliable evidence.

The issue extends beyond misleading advertising, raising wider concerns about product quality, specification control and the processes businesses use to verify that goods and services meet the requirements communicated to customers.

Under the Digital Markets, Competition and Consumers Act 2024, the Competition and Markets Authority (CMA) has gained stronger powers to investigate breaches of consumer protection law and impose financial penalties without first having to pursue cases through the courts.

The enforcement regime, which came into effect in April 2025, allows the CMA to impose penalties of up to 10% of a business's worldwide turnover for certain breaches of consumer protection law.

Although much of the attention has focused on environmental claims, the underlying requirements have broader implications for businesses making statements about product durability, reliability, performance, origin and other characteristics.

Regulators have emphasised that claims made to customers must be accurate, clear and supported by appropriate evidence. Businesses cannot rely on general assurances or marketing descriptions where the information provided creates a misleading impression of what a product or service will deliver.

The CMA's investigations into environmental claims made by major fashion retailers have demonstrated the potential consequences of inadequate controls over commercial information.

Following investigations into ASOS, Boohoo and George at Asda, the companies signed formal undertakings in 2024 committing to change the way they displayed and substantiated environmental claims about clothing products.

The undertakings addressed concerns including the use of broad environmental descriptions, unclear criteria for product ranges and insufficient information about the materials used in garments.

The CMA said the agreements would help ensure that consumers received clearer and more accurate information when making purchasing decisions.

The investigations highlighted the difficulties that can arise when marketing departments, product development teams, procurement functions and suppliers operate without consistent arrangements for verifying claims.

A business may advertise a product as meeting a particular specification, containing certain materials or delivering a defined level of performance, but the reliability of that statement depends on the evidence available throughout the supply chain.

Where suppliers change materials, manufacturing processes are altered or product specifications are revised, previously approved claims may no longer accurately reflect the product being sold.

This creates a quality management challenge as well as a regulatory risk.

Product conformity is not determined solely by whether an item functions as intended. It also depends on whether the product meets the specifications, characteristics and performance requirements communicated to the customer.

The issue is particularly significant in sectors where technical information directly influences purchasing decisions, including construction products, electrical equipment, automotive components, manufacturing materials and professional services.

In these industries, inaccurate product information can result in incorrect purchasing decisions, unsuitable applications, contractual disputes and potentially significant operational consequences.

The Office for Product Safety and Standards (OPSS) has also investigated cases involving construction products where declared performance characteristics were not adequately supported by testing, documentation or conformity assessment.

Such investigations demonstrate how weaknesses in technical verification can extend from the manufacturing process into product labelling, certification and commercial information.

The increasing complexity of supply chains presents an additional challenge.

Businesses frequently rely on suppliers to provide technical specifications, material declarations, test certificates and other evidence supporting product claims. However, the existence of supplier documentation does not necessarily establish that the information remains accurate or applies to the specific products being supplied.

Changes to raw materials, production locations or manufacturing methods can affect product characteristics, making it necessary for businesses to maintain effective communication and change-control arrangements with suppliers.

The expansion of online retailing has also increased the speed at which product information is published and distributed.

Descriptions may appear simultaneously across company websites, online marketplaces, digital catalogues and promotional materials. Where information is inaccurate, the same error can quickly affect large numbers of customers.

Businesses using automated content-generation systems face additional considerations, particularly where artificial intelligence is used to produce or revise product descriptions.

Although these technologies can improve efficiency, automatically generated statements about technical performance, certifications or product characteristics still require verification against reliable information.

Quality management professionals recognise that controlling externally communicated information is closely connected to established processes for design, development, purchasing, inspection and customer communication.

Where product characteristics are defined during development, those requirements must remain consistent with the information subsequently used in sales and marketing.

Similarly, changes affecting product performance should be reflected in technical documentation, customer specifications and other relevant communications.

For organisations operating quality management systems under ISO 9001, the issue is relevant to requirements concerning customer communication, determination and review of product and service requirements, control of externally provided products and services, and verification of conformity.

It also highlights the importance of maintaining effective links between commercial activities and operational quality controls.

A product may pass its final inspection while still failing to meet the expectations created by inaccurate marketing information or an outdated technical specification.

The strengthening of consumer protection enforcement places additional emphasis on the need for businesses to ensure that their claims are supported by evidence and remain accurate throughout the commercial lifecycle.

As regulators continue examining misleading product information, organisations face growing pressure to demonstrate that the claims they make are consistent with the products and services they actually deliver.

For businesses across manufacturing, retail and service industries, the reliability of product information is becoming an increasingly important aspect of quality assurance, customer confidence and regulatory compliance.

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