Company under fire as consumer group takes action over deceptive marketing tactic: 'Misleading and incomplete'
Swiss regulators are stepping in to call foul on a running shoe company's sustainability program.
As reported by Fashion Network, Swiss running shoe brand On is facing allegations of greenwashing after the Romandy Consumers Association — shortened as FRC — filed a complaint against the company's "Cyclon" subscription program.
The initiative, marketed as a circular economy solution, ostensibly was meant to enable customers to subscribe to shoes, wear them out, and exchange them for a new pair with the promise that the used shoes would be recycled.
However, a June 2024 investigation by Swiss outlet RTS revealed that "no shoes had yet been recycled," causing the FRC to conclude On's claims to be "misleading and incomplete."
This complaint is among the first to be filed under a new Swiss anti-greenwashing law that took effect in the beginning of 2025.
Greenwashing — when companies exaggerate or fabricate sustainability claims — undermines consumer trust and slows progress toward genuine environmental responsibility.
If On's "Cyclon" program is indeed misleading, it could indicate that the company is attempting to manipulate eco-conscious consumers who want to put money toward green companies.
The new Swiss law requires that all environmental claims be objectively verifiable, and the FRC's complaint will serve as a test case for its enforcement. If companies can market circular economy initiatives without actually following through, consumers may end up unknowingly contributing to waste rather than reducing it.
Additionally, false sustainability claims can make it harder for consumers to make informed, responsible purchasing decisions.
The lawsuit demonstrates an increase in oversight by governments to make sure consumers are not misled by fake sustainability claims. While it unfolds, consumers can take steps to ensure their purchases align with genuine sustainability efforts.
Which of these factors would most effectively motivate you to buy a refillable product?
Saving money
Reducing plastic waste
Using less shelf space at home
Getting easy refill deliveries
Click your choice to see results and speak your mind.
Supporting brands with third-party environmental certifications, prioritizing long-lasting products over subscription-based models, and advocating for stronger greenwashing regulations can all help push the fashion industry forward.
As this case develops, it highlights the importance of holding companies accountable for their environmental promises, ensuring that sustainability claims are more than just marketing tactics.
Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
5 hours ago
- CNBC
Dollar steadies after rally, focus shifts to US-China trade talks
The dollar held steady against all major currencies on Monday, as exuberance over an upbeat U.S. employment report gave way to caution ahead of pivotal U.S.-China trade talks set to take place in London later in the day. The talks come at a crucial time for both economies, with China grappling with deflation and trade uncertainty dampening sentiment among U.S. businesses and consumers, prompting investors to reassess the dollar's safe-haven status. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer are expected to represent the U.S. at the trade talks, while vice premier He Lifeng would likely be present with the Chinese delegation. "A deal to keep talking might be better than nothing, but unless we see a concrete breakthrough, the impact on sentiment is likely to remain muted," said Charu Chanana, chief investment strategist at Saxo Markets. Friday's upbeat U.S. jobs report yielded some relief for investors following other bleak economic data last week. The dollar advanced against major peers after the employment report, which cut weekly declines in the dollar index by more than half. However, it is still down by more than 8.6% for the year. On Monday, the yen firmed 0.10% at 144.750 per dollar, as data showed Japan's economy contracted at a slower-than-expected pace in the January-March period. The Swiss franc was steady at 0.8221 per dollar by 0041 GMT. The euro was last flat at $1.1399, while the sterling fetched $1.3535. The dollar index, which measures the U.S. currency against six others, was steady at 99.169. The yield on 10-year Treasury notes was flat in early Asia trading, after a more than 10 basis points jump on Friday. New Zealand's dollar last bought $0.6020, while the Australian dollar inched up 0.1% at $0.65 in light volumes as markets were closed for a public holiday. An inflation report out of the U.S. for the month of May will be in the spotlight later in the week as investors and Federal Reserve policymakers look for evidence on the damage trade restrictive policies have had on the economy. Fed officials are in a blackout period ahead of their policy meeting next week, but they have signalled that they are in no rush to cut interest rates and signs of better-than-feared economic resilience are likely to further cement their stance. Interest rate futures indicate that investors are anticipating the central bank may cut borrowing costs by 25 basis points, with the earliest move expected in October this year, according to data compiled by LSEG. "May is the first month where the impact of Trump's 10% universal tariff on imports ex-USMCA is expected to show. The Fed will want a few months of inflation data in order to judge the tariff impact and most importantly, its persistence," analysts at ANZ Bank said. Elsewhere, China's offshore yuan was last at 7.187 per dollar ahead of inflation and trade data.
Yahoo
2 days ago
- Yahoo
UBS faces $26B in capital requirements from Swiss bank reforms, Bloomberg says
UBS (UBS) is facing as much as $26B in capital requirements to be phased over the next decade under banking reform proposals from the Swiss government, Bastian Benrath-Wright and Noele Illien of Bloomberg reports. The largest hit to the bank is set to come from a proposal that would require the company to increase the capital held at home against its stakes in foreign units to 100% from the current 60%. The government estimates this will force UBS to add as much as $23B in capital to its Swiss-based main unit. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on UBS: Disclaimer & DisclosureReport an Issue UBS Lowers Price Target on Berkshire Hathaway Stock (BRK.B) as 'Buffett Premium' Ends UBS Group AG Faces Sell Rating Amid Regulatory Uncertainty and Capital Challenges UBS call volume above normal and directionally bullish UBS upgraded to Buy from Hold at Jefferies Unusually active option classes on open May 27th Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Yahoo
After its data was wiped, KiranaPro's co-founder cannot rule out an external hack
Indian grocery delivery startup KiranaPro's recent data loss story has more holes than Swiss cheese, as the startup remains unclear whether the incident was an internal breach or an external hack. Last week, the Bengaluru-based startup discovered that it could not access its back-end servers and that all its data, including its app code, had been deleted from GitHub. The startup on Friday blamed a former employee for the breach. However, in an interview, KiranaPro co-founder and CEO Deepak Ravindran conceded that the company had not deactivated the employee's account after they departed the company and cannot rule out the possibility of subsequent malicious misuse of their account. "If we go deeper, we have to do a real forensic investigation. We are going to talk [about] this with our board, the investors, and we are going to get a formal opinion on that also with our legal advisers," Ravindran told TechCrunch. Earlier on Friday, Ravindran claimed in a post on X that the incident that affected its data was an internal breach. "After careful investigation, we conclude that this was not a hack. No external party penetrated our ordering or payment systems, exploited vulnerabilities, or bypassed security protocols," he wrote. The co-founder also explicitly shared a screenshot of a LinkedIn profile of one of KiranaPro's former employees on X on Thursday, alleging that they had deleted the startup's code. (TechCrunch is not sharing the post's link, as the startup has yet to offer concrete proof supporting its position.) "[T]his was an internal data breach. Specifically, it was the result of actions taken by a trusted internal employee who had legitimate access to our systems," the co-founder wrote in his post on Friday. "This individual intentionally deleted critical server logs while they were being tested and/or edited, an action that goes directly against our policies, our principles, and the trust we place in our team." When TechCrunch asked if KiranaPro could rule out whether any third party had maliciously gained access to the former employee's account, Ravindran could not. "We have to do a complete forensic check on the company. We have to do the entire IP scan. We have to look at where the tracks happened. We have to check the computers, MacBooks, and whatever is used. Everything has to be done. Then we have to spend money … so, that's why we decided not to," he told TechCrunch. Then what was the basis of Ravindran's allegation? It was a GitHub response, a copy of which he shared with TechCrunch. The response included a username, which Ravindran said was associated with the former employee. "All we have is the emails that we got from GitHub, stating that [the former employee's username] as an individual is the one who deleted the account. We haven't done the investigation further," Ravindran told TechCrunch. Launched in late 2024, KiranaPro operates as a buyer app on the Indian government's Open Network for Digital Commerce. The startup allows more than 55,000 customers in 50 cities to purchase groceries from their local shops and nearby supermarkets using its voice-based interface. The company also supports local language inputs, including English, Hindi, Malayalam, and Tamil. Ravindran stated that they decided to call out the former employee based on the company's "belief system," as they claim the former employee deleted the data after their sudden termination. However, the startup said it is not aware if there were enough protections on the former employee's devices, such as multi-factor authentication, to restrict malicious third-party access, like malware. The company confirmed it did not remove the employee's access to its data and GitHub account following his departure. "Employee offboarding was not being handled properly because there was no full-time HR," KiranaPro's chief technology officer, Saurav Kumar, confirmed to TechCrunch. Alongside its code saved in GitHub, KiranaPro also lost access to its Amazon Web Services (AWS) account, which included its customer data and their transaction details. Ravindran told TechCrunch that the GitHub data was restored after getting its backup from one of their employees. The startup also regained access to its AWS account along with its customer data. Both the co-founder and CTO said the AWS account was protected by multi-factor authentication, but neither could say how the account was accessed, as nobody else had physical access to Ravindran's phone, which generates the multi-factor code. Nonetheless, Ravindran claimed that the customer data stored in the AWS cloud remained intact and was not accessed by any third parties, nor was it downloaded by the former employee in question. "Because if that is the case, I will get its notification on email or anything [sic]," he said. That said, Ravindran stated that the startup has enough evidence to file a formal complaint with the police, but said that its investigation is ongoing. The startup has also not fully paid its current employees, the company's co-founder confirmed, soon after the company raised a seed round of ₹100 million Indian rupees (about $1.2 million), which Ravindran said has yet to be fully wired. The startup counts Blume Ventures, Unpopular Ventures, and Turbostart among its institutional venture backers, as well as Olympic medalist PV Sindhu and Boston Consulting Group managing director Vikas Taneja among its angel investors. It has 15 employees located in Bengaluru and Kerala. Sign in to access your portfolio
