ACM: sustainability labels are too vague, legislation is needed

Sustainability labels on products are of little use to consumers, according to the Netherlands Authority for Consumers and Markets (ACM). a consumer survey† Only a quarter of consumers trust the labels, largely because the logos don’t provide enough clear information about why a product would be sustainable. The regulator believes that there is a role for the legislator, for example by setting requirements that the quality marks must meet.

At the moment it is difficult for consumers to interpret how the labels relate to each other. The information must be verifiable, comparable and well-arranged – that is currently not the case, according to ACM. Consumers often do not know that a quality mark exists or what it stands for, the ACM calls the knowledge about it in the report ‘remarkably small’. The research shows that consumers would most appreciate a sustainability score that allows comparison between products, such as the already existing energy labels for electronics.

“Companies now all have individual logos, with a forest or something green on them, which suggests sustainability,” says ACM board member Cateautje Hijmans van den Bergh. “In fact, those logos mean nothing. We prefer uniform quality marks with clear information, which are also visually appealing. That ensures the best recognition among consumers.”

No legal framework

Enforcement of the quality marks is difficult for ACM because of a lack of a clear legal framework, according to the regulator. Recent European bills impose stricter requirements on sustainability labels, but it can take a long time before they are adopted and implemented. Hijmans van den Bergh: „It would be smart if the legislator in the Netherlands would start something in the meantime. Consumers would like to make a contribution in the field of sustainability, so you have to offer them the opportunity to do so.” For example, the government can certify quality marks or introduce a standard quality mark. Consumers indicated that they were more likely to trust quality marks if they came from the government, rather than from the companies with commercial interests themselves.

The ACM is currently investigating whether sustainability claims in certain sectors are truthful and not misleading. That research focuses exclusively on fashion chains, dairies and energy suppliers. It is not yet known when that investigation will be completed.