Two years ago, the Competition and Markets Authority launched a call for information looking at consumer protection in the UK green heating and insulation sector. It raised concerns about misleading claims about products and greenwashing, as well as concerns about limited transparency of price information. 

Last December, it consulted on draft compliance advice for businesses about marketing green heating and insulation products.  It has now published its final advice to help businesses to understand and comply with their existing obligations under consumer law, especially the rules about avoiding unfair commercial practices. These are set out in the Consumer Protection from Unfair Trading Regulations 2008 which are being restated in the Digital Markets, Competition and Consumers Act 2024 (DMCC Act), due to come into force later this year. The CMA has also published videos and checklists to help businesses to comply with the law.

So what do you need to consider if you market green heating solutions?

Pricing information

The CMA guidance says that a headline price should be:

  • accurate: it should be a realistic indication of what people are likely to pay for your products.
  • comprehensive: it should include the cost of any enabling works, other products and/or interventions that most consumers are likely to need.
  • honest: it must not mislead people about the likely cost.
  • clear: any important qualifications should be presented clearly and prominently as close to the headline price as possible, so that a consumer can easily see them.
  • careful in how you refer to access to government funding: you should be careful in how you present information about access to government funding as this could significantly influence a consumer’s assessment of the affordability of your products.
  • open about the bundling of products: If you offer your products as part of a single package (bundle) of goods and services, you must not mislead consumers about the offer or the price of the bundle.

Product claims

The guidance also sets out the following five principles for product claims:

  • have evidence – if you can’t back it up, don’t say it - ensure you have documentary evidence for a claim.
  • explain everything the consumer needs to know - e.g. don't leave out important information which the consumer needs to know to understand your claim and to make an informed decision.
  • be careful when using ‘up to’ claims – you need credible evidence that at least a significant proportion of consumers will have a good chance of achieving the stated outcome and that it reflects the range of factors which affect how a product performs.
  • be realistic, representative and don’t exaggerate benefits - ie avoid claims that rely on many complex variables and assumptions that cannot be easily predicted.
  • choose your words carefully - for example, use simple language and don't use overly technical language.

The guidance also contains various useful examples which illustrate the principles as well as the problems that can occur with certain claims.  Under the new DMCC Act, the CMA will have the powers to impose eye-watering fines, so it is important for businesses to digest and implement the guidance.