Greenwashing in Fashion: Can International Law Stop Deceptive Sustainability Claims?

Written by Erin Soro

The fashion industry has long been under scrutiny for its environmental impact. In recent years, brands have increasingly marketed themselves as “sustainable” or “carbon neutral.”¹ Many of these claims constitute greenwashing—exaggerating or fabricating sustainability efforts to attract environmentally conscious consumers.² Fashion brands have never been environmental darlings, but their use of carbon offsets to advertise carbon neutrality, without meaningfully reducing emissions, has drawn legal challenges and mounting regulatory scrutiny for greenwashing.

The European Commission has taken steps to address this issue through the European Union Green Claims Directive, a proposal which aims to ban unsubstantiated carbon neutrality claims and requires scientific proof for sustainability marketing.³ Similarly, the United Kingdom Green Claims Code, introduced in 2021, holds brands accountable for vague or unverified sustainability statements.⁴ In the United States, the Federal Trade Commission’s Green Guides are expected to introduce stricter rules on carbon offset marketing to prevent deceptive claims.⁵ Despite these efforts, there is no binding international treaty that directly regulates greenwashing, leaving enforcement to national authorities and consumer lawsuits.

Carbon offsets have become a key marketing tool for fashion brands aiming to appear environmentally responsible. Companies purchase offsets—such as tree-planting projects—to compensate for their emissions while continuing to pollute.⁶ However, many of these offsets fail to deliver actual carbon reductions, making the practice more of a public relations stunt rather than a genuine sustainability effort.⁷ A notable example is H&M, which has faced lawsuits over misleading sustainability marketing; this includes its “Conscious Collection” which was advertised as environmentally friendly.⁸ In reality, many of its claims were unverified, exaggerated, and emblematic of the superficial sustainability narratives plaguing the industry.⁹ Similarly, GORE-TEX has faced scrutiny for promoting its waterproof fabrics as sustainable while continuing to use environmentally harmful forever chemicals.¹⁰ The brand has received growing backlash from environmental groups and consumers demanding greater transparency and the elimination of toxic substances.¹¹

These cases highlight the gaps in legal oversight that allow misleading claims to persist. The lack of a unified global definition for greenwashing is one of the most significant legal hurdles. While some national laws prohibit misleading environmental claims, enforcement mechanisms remain inconsistent across jurisdictions.¹² The Organisation for Economic Co-operation and Development (“OECD”) Guidelines for Multinational Enterprises provide voluntary principles for responsible business conduct, but they lack enforceability.¹³ The Paris Agreement’s Article 6 governs carbon offset trading but does not adequately regulate corporate claims about emissions reductions.¹⁴ This has led to concerns about double-counting, where both the seller and buyer of offsets claim the same emission reductions.¹⁵ This regulatory fragmentation allows multinational corporations to exploit loopholes and engage in greenwashing without consequences.

A stronger legal framework must be established to address these shortcomings. One approach is the implementation of mandatory third-party verification of carbon offset claims. Companies should be required to submit independent audits of their sustainability claims, ensuring that emissions reductions are measurable and verifiable. The OECD Guidelines should be expanded to include enforceable legal standards that penalize corporations engaging in deceptive sustainability marketing. Additionally, a global carbon offset certification system should be developed to prevent double-counting and false claims, ensuring that sustainability efforts are legitimate and transparent. Environmental watchdogs and policy experts support these measures, stressing that without verification and oversight, sustainability claims remain unreliable.¹⁶

A precedent for stricter greenwashing regulations can be seen in the legal actions taken against major fashion brands. For instance, Shein has faced scrutiny in Italy over possible greenwashing with authorities investigating whether its sustainability claims mislead consumers.¹⁷ Similarly, lawsuits against fast fashion giants such as H&M and Zara demonstrate an increasing willingness by regulators and consumers to challenge misleading corporate claims.¹⁸ These legal actions highlight the importance of enforcing stricter penalties on companies that falsely advertise their environmental efforts.

Policymakers must also explore how international trade law could be used to regulate greenwashing. The World Trade Organization (“WTO”) has existing mechanisms to address false advertising in trade practices, and incorporating greenwashing regulations into international trade agreements could create stronger global enforcement.¹⁹ If the WTO were to recognize deceptive sustainability claims as unfair trade practices, it could provide a basis for holding multinational corporations accountable on a larger scale.

The stakes are high. The fashion industry is responsible for nearly 10% of global carbon emissions.²⁰ Without stricter regulation, greenwashing allows brands to avoid real climate action while misleading consumers. Policymakers must implement legally binding standards to ensure that sustainability claims are backed by genuine environmental improvements. Consumers can also play a crucial role by demanding greater transparency and holding brands accountable for their green claims. NGOs and independent watchdogs must continue to expose deceptive practices and push for legislative reforms. Greenwashing is not just a marketing issue—it is a fundamental challenge to global sustainability efforts. Stronger laws and enforcement mechanisms are needed to close the loopholes that allow brands to deceive consumers and evade responsibility for their environmental footprint. If regulators fail to act decisively, the continued spread of misleading green claims could undermine trust in genuine sustainability efforts, ultimately delaying progress in addressing the fashion industry’s environmental impact.

A unified international approach is necessary to bridge these regulatory gaps. The establishment of a UN-backed treaty on corporate greenwashing can help create harmonized global standards, ensuring that companies cannot escape scrutiny by exploiting jurisdictional inconsistencies. If coupled with rigorous enforcement mechanisms, such a treaty could transform sustainability reporting from a marketing tool into a legally binding commitment. Without decisive action, greenwashing will continue to erode the credibility of corporate sustainability efforts and hinder meaningful progress in the fight against climate change.

Posted in Blog

Written by Erin Soro

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