The Italian Competition Authority (AGCM) has imposed an €8 million fine on General Logistics Systems B.V. (GLS Group), along with its Italian subsidiaries, General Logistics Systems Italy S.p.A. and General Logistics Systems Enterprise S.r.l., for engaging in unfair commercial practices linked to its environmental sustainability program, “Climate Protect.”
The investigation revealed misleading claims and non-transparent financial practices, casting doubts on the legitimacy of GLS’s green initiatives.
Lack of Transparency in Environmental Claims
AGCM found that GLS’s “Climate Protect” initiative, designed to enhance its environmental image, was not implemented with the required transparency and diligence expected of companies operating in high-pollution industries such as logistics and transportation. The environmental statements published on GLS Italy’s website were deemed ambiguous, lacking the clarity, specificity, and verifiability necessary to substantiate their green claims.
Growing consumer awareness about environmental issues has made sustainability a key factor in corporate reputation. Misleading statements about environmental contributions can unfairly influence consumer choices and market competition. The regulator determined that GLS’s claims did not provide sufficient or accurate information, potentially misleading customers regarding the extent of the company’s actual environmental commitment.
Forced Participation and Unjustified Costs
A key issue identified by AGCM was the compulsory nature of the “Climate Protect” program for customers of General Logistics Systems Enterprise. Subscribers were automatically enrolled and required to pay for carbon offset certificates related to their deliveries, without an option to opt out. The investigation found that the program’s contribution fees were imposed without verification of actual costs incurred by the company in implementing the initiative.
Further scrutiny revealed that GLS exempted top-tier clients from these fees while giving smaller customers the impression that the company was making substantial contributions to the program’s funding. In reality, the burden of the program’s costs fell entirely on subscribed customers and logistics partners. Additionally, the regulator determined that GLS profited from the program by collecting more in fees than it actually spent on offsetting carbon emissions, further amplifying the deceptive nature of its environmental claims.
Misleading Communications and Overcharging Suppliers
The investigation also found that GLS misrepresented the nature of its sustainability efforts to both its customers and logistics partners. Carbon offset certificates provided to clients and partner companies contained misleading, ambiguous, or even false information. Moreover, GLS allegedly forced its network of suppliers to contribute to emission compensation costs, overcharging them for services that were neither transparent nor properly justified.
Given the severity of these findings, the AGCM ruled that GLS engaged in unfair commercial practices, violating consumer rights and fair competition regulations. The €8 million fine serves as a strong warning to companies making unverified environmental claims, emphasizing the need for transparency, accuracy, and integrity in corporate sustainability initiatives.
Industry Implications
The decision by the Italian Competition Authority underscores the increasing regulatory scrutiny over corporate environmental claims, particularly in sectors with high carbon footprints. As businesses integrate sustainability into their branding and operations, authorities are expected to impose stricter compliance measures to prevent greenwashing and ensure that environmental commitments are backed by verifiable actions.
GLS Italy has yet to respond to the fine, but the ruling sets a precedent for greater accountability in corporate sustainability programs, reinforcing the importance of truthfulness and transparency in environmental marketing practices.
