The Netherlands Authority for Consumers and Markets (ACM) has recently issued a clear call to companies in the food sector: review and improve your sustainability claims. This call is not optional. The ACM emphasizes that it will actively monitor compliance with the rules and, if necessary, take enforcement action. What does this mean for companies in the food sector?
Why this call?
Sustainability claims are playing an increasingly significant role in the marketing of food products. Consumers want to make informed choices and consider sustainability in their purchasing decisions. However, the ACM has observed that many claims in the food sector are unclear. This not only undermines consumer trust but can also lead to unfair competition among companies. For example, the ACM notes that it is often unclear what labels, logos, and certifications represent or what a sustainability claim specifically entails.
The ACM has previously scrutinized sustainability claims in other sectors, such as clothing, energy, and transportation. Now, it is the food sector’s turn.
The Sustainability Claims Guidelines: the basis for compliance
The ACM directs companies to its updated Sustainability Claims Guidelines (2023). These guidelines outline five key rules that sustainability claims must adhere to:
- Use clear, specific, and complete sustainability claims;
- Substantiate sustainability claims with facts and keep them up to date;
- Make fair comparisons with other products or competitors;
- Describe future sustainability ambitions in concrete and measurable terms;
- Ensure that visual claims and certifications are helpful and not misleading.
What’s at stake?
The ACM has announced that it will actively check whether companies have adjusted their sustainability claims following this call. If claims do not comply, the ACM has stated that it may take enforcement action. Companies using sustainability claims that do not meet the Sustainability Claims Guidelines may face fines or orders subject to penalty payments.
What can your company do?
To avoid risks and ensure compliance with the law, it is essential for companies to take action now. A few practical tips:
- Inventory Your Sustainability Claims.
Map out all the claims you use on products, in advertisements, and in stores;
- Assess Your Claims Against the Sustainability Claims Guidelines.
Verify whether your claims comply with the ACM’s five key rules as outlined in the Sustainability Claims Guidelines;
- Collaborate with Experts.
Have your claims reviewed both legally and substantively by specialists. This can help identify and mitigate risks;
- Communicate Transparently.
Ensure that your claims are understandable to consumers and supported by clear information;
- Stay Up-to-Date.
Closely monitor developments in laws and regulations regarding sustainability claims.
Conclusion
The ACM’s call is a clear warning to the food sector: ensure that your sustainability claims are honest, clear, and substantiated. If not, the ACM may proceed with enforcement.
Do you need assistance in reviewing or adjusting your sustainability claims? We are happy to help you mitigate risks and bring your claims into compliance with the law. Feel free to contact Arnout Koeman or one of our other specialists.
