Company dealt massive fine after misleading customers with fake program: 'Customers were led to believe'
If you have ever seen a shampoo that was labeled "all natural" but the ingredients list had synthetic substances, you know that it's all too common for companies to use greenwashing to lure in customers.
Greenwashing is especially frequent in the beauty, fashion, and shipping industries because of their high carbon footprints, but not every act of greenwashing is punished. Luckily, the Italian Competition Authority (AGCM) cracked down on three companies, issuing an extraordinary fine of €8 million ($8.7 million).
In January, the Italian Competition Authority fined three transport companies — General Logistics Systems B.V., General Logistics Systems Italy S.p.A., and General Logistics Systems Enterprise S.r.l. — for greenwashing via misleading marketing claims and charging customers an exorbitant amount for carbon offset certificates.
The first issue was that the companies used taglines including "100% green energy in our facilities" with no evidence to back up their claims.
The second issue was that they forced customers to subscribe to a "Climate Protect" program to offset carbon pollution from deliveries. The companies did not verify the carbon emissions created by the customers before charging and charged up to four times more than necessary. Instead of using the excess to offset more of their carbon footprint, they kept the profit.
"While top clients were exempted from paying the contribution, all other customers were led to believe that the GLS companies themselves would be contributing significantly to the program's funding," the AGCM said in a statement.
These false claims influenced customers to choose these shipping companies over others that might have actually offset more of their carbon footprints. The greenwashing also ruined the reputation of the companies.
The transportation industry contributes 8% of global heat-trapping gas pollution and up to 11% if ports and warehouses are included. Demand for shipping is expected to triple by 2050 and become the biggest contributor of all industries, which means it's imperative that we reduce our use of dirty fuels immediately. A way the industry can effect change is to use boats more than cars or trucks and transition to electric vehicles.
More lawsuits are popping up against greenwashing, which means corporations trying to skirt environmental laws are being held accountable. Even Apple isn't exempt from a civil lawsuit.
Consumers can also call out businesses if they see greenwashing, like with this case against Fisher-Price or these brands at Target. If you would like to learn more about greenwashing, you can check out the TCD guide.
Should companies be required to help recycle their own products?
Definitely
No way
It depends on the product
They should get tax breaks instead
Click your choice to see results and speak your mind.
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
27-05-2025
- Yahoo
Dior Welcomes ‘Positive Conclusion' of Italian Probe
Dior said Wednesday it has been cleared of any wrongdoing following an Italian probe into its supply chain, citing a 'positive conclusion' of an investigation by the Italian Competition Authority. 'This further underscores the maison's steadfast and historic dedication to pursuing both rigorous made in Italy products and the highest standards of ethics and excellence,' it said. More from WWD Why Saudi Arabia and Qatar Are Primed for New Design Events as Contract Business Drives Demand Natalie Portman Elevates Femininity in Dior Little Black Dress for the 'Fountain of Youth' Premiere in New York City All the Designer Debuts Still to Come in 2025 Last year, an investigation was launched into alleged worker exploitation at several Chinese-owned firms in Italy producing luxury goods for the Armani Group, Dior and Alviero Martini. 'Dior remains committed to upholding our values of transparency and respect throughout our supply chain,' the French fashion house said in Wednesday's statement. 'We continue to closely monitor, and where appropriate, strengthen, our internal procedures to maintain fair and equitable working conditions for everyone who contributes, with great commitment and skill, to creating the finest quality Dior products.' Dior said it partnered closely with the Italian Competition Authority 'to define a robust set of commitments that increase transparency and strengthen oversight throughout its supply chain, as well as promote initiatives aimed at protecting and facilitating employment of artisans and workers in the fashion industry.' Dior had already passed a hurdle last February when the Court of Milan revoked a judicial administration imposed when its probe was initiated in June 2024. At the time, Dior welcomed an early and successful resolution of those proceedings. A concurrent investigation by the Italian Competition Authority, initiated in July 2024, focused on whether Dior misled consumers by promoting high ethical standards and artisanal craftsmanship while allegedly relying on suppliers that subjected workers to poor conditions. This week, the authority concluded its investigation without establishing any infringement, according to Dior. In a separate release, the Italian body said that one of Dior's commitments was a sum of 2 million euros over five years, going to support initiatives helping victims of labor exploitation. The same form of special administration imposed on Giorgio Armani Operations, a unit of the namesake designer's fashion group, was also revoked last February. Meanwhile, probes in Italy continue into working conditions in the supply chain of luxury brands. Last week, a unit of Valentino specialized in bags was placed under judicial administration for a year by the same Milan court after worker abuse was uncovered at subcontractors. Following the move, Valentino said it had intensified its supplier evaluation process across its supply chain in recent years and would cooperate with the relevant authorities to 'fully understand the circumstances that have led to the measures taken by the judiciary in this specific case.' Best of WWD Bottega Veneta Through the Years Chanel's Ambassadors Over The Years Ranking Fashion's Longest-serving Creative Directors 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
08-05-2025
- Yahoo
Report warns of steep food price hikes as essential crop yield plummets — here's what's at risk
Food prices continue to surge as Earth's rising temperatures disrupt global crop production, threatening food security and household budgets worldwide. Japan's recent rice shortage offers a sobering preview of what might soon affect American dinner tables and grocery bills. Rising global temperatures damage crop yields and drive up food costs across the globe. In Japan, heat-induced shortages have caused domestic rice prices to skyrocket, forcing the country to import over 44,000 tons of rice, primarily from the U.S., in fiscal 2025, according to Finimize. Major Japanese retailers now sell foreign rice varieties because, even with import tariffs, they are cheaper than local options. When essential crops fail, families can feel an immediate financial strain. The average American household now spends 12% more on groceries than just two years ago, with climate-vulnerable staples seeing the steepest price hikes. Beyond the economic impact, food insecurity threatens community health as nutritious options become less affordable. Agricultural disruptions also harm ecosystems and biodiversity. Farmers adopt more aggressive growing techniques to compensate for losses, creating a harmful cycle of environmental degradation that further worsens climate conditions. Scientists are working to develop heat-resistant crop varieties that can withstand higher temperatures without sacrificing nutrition or yield, and the United States Department of Agriculture announced a $250 million initiative to support small and midsize farms implementing climate-smart agricultural practices last year. International cooperation, including Japan's rice imports, also demonstrates how trade relationships can buffer against local food shortages. Planning meals, buying seasonal produce, and reducing food waste are practical steps you can take to save money while supporting a more sustainable food system. Consumers looking to protect their household budget can check out TCD's guide to shopping smarter at the grocery store. It offers tips to stretch your dollar and protect the environment at the same time. What's the most common reason you end up throwing away food? Bought more than I could eat Went bad sooner than I expected Forgot it was in the fridge Didn't want leftovers Click your choice to see results and speak your mind. Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
08-04-2025
- Yahoo
Italian authority levies hefty fines against Roman Colosseum ticketing agencies
ROME (AP) — Italy's competition authority on Tuesday levied fines totaling 20 million euros ($22 million) against half a dozen ticketing agencies for practices that have made it " difficult for regular visitors to buy basic tickets online to visit the landmark Roman Colosseum. The Cooperative Culture Society, which managed ticket sales for the Colosseum from 1997 to 2024, received the largest portion of the overall fine with 7 million euros. The fine was for a series of practices that forced tourists to buy tickets at significantly higher prices from platforms that added services such a tour guides or line skipping, the authority also know as AGCM said in a statement. Six tour operators based in Italy, Germany, the Netherlands and Ireland were additionally fined for using bots and other automated systems to buy up large quantities of tickets, making them unavailable for individual tourists. The authority did not list the mark-ups, but the Archaeological Park of the Colosseum which is operated by the Italian Culture Ministry, lists the price for access to the ancient Roman arena at 18 euros for adults. For that price, visitors may spend 20 minutes on the Colosseum's main floor. The Colosseum was Italy's most-visited monument in 2023, with over 12.3 million visitors, the business daily il Sole 24 Ore reported.
