The CMA has issued a consultation on draft compliance advice for businesses on the marketing of green heating and insulation products. 

It aims to to help relevant businesses to understand and comply with their existing obligations under consumer protection law when marketing green heating and insulation products for use in the home. It follows concerns the CMA identified about some businesses in the sector making potentially misleading claims about green heating and insulation products and/or providing limited and inconsistent upfront price information as part of its review of consumer protection in the sector.  In summary, the guidance covers the way price information is presented as well as how to make product claims lawfully.

The CMA has set out some principles for price information.  They include:

A. Accurate - eg headline prices should be a realistic indication of what people are likely to pay and include all mandatory fees and charges, including VAT (where applicable). It must also cover mandatory charges, such as delivery and installation.
B. Comprehensive - charges should be included in the headline price if it is reasonably foreseeable that consumers will be required to pay them, such as scaffolding charges for solar panel installation.
C. Transparent - eg only use “from” claims if a reasonably proportion of consumers will pay the “from” price. 
D. Clear - any important qualifications need to be presented close to the headline price. 
E. Post-purchase - consumers need to be aware of any post-purchase financial obligations.
F. Access to government funding - ensure that consumers know that funding depends on fulfilling eligibility criteria and meeting certain obligations.
G. Bundled goods/services - set out the prices of the individual components of the bundle, eg subscription services.

The principles for product claims include:

A. Have evidence – if you can’t back it up, don’t say it.
B. Explain everything the consumer needs to know.
C. Be careful when using ‘up to’ claims – consider if it is appropriate.
D. Be realistic, representative and don’t exaggerate benefits. 
E. Choose your words carefully - eg don't use jargon.

The guidance also includes useful examples with explanations of how they could mislead consumers.  Although the guidance has a relatively narrow target audience, it contains useful general principles for any sectors making price and product claims to consumers.

The CMA plans to publish the final version of its compliance advice in the spring of 2024. The consultation ends on 24 January 2024.