Nike, Inc. (NYSE:NKE) is facing regulatory pressure after U.K. authorities ruled that one of its online ads included a misleading sustainability claim.

The decision puts the sportswear giant at the center of a growing crackdown on green marketing across the fashion industry.

The ruling, issued by the U.K.’s Advertising Standards Authority (ASA), is part of a broader investigation into environmental claims made by retailers.

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The case stems from a paid Google advertisement that ran in June 2025. The ad promoted “Nike Tennis Polo Shirts – … Sustainable Materials,” a phrase the regulator said could mislead consumers about the environmental attributes of the products.

ASA questioned whether the description implied a more comprehensive sustainability profile than Nike could substantiate.

Nike’s defense

Nike Retail BV said the ad referred broadly to many of its offerings. It argued the phrase “sustainable materials” signaled that some, not all, products used recycled components.

The brand pointed out that Summer 2025 tennis polo shirts contained at least 75% recycled polyester.

Details about material composition were included in individual product listings for informed customers.

Regulator’s verdict

ASA concluded the ad broke advertising rules. The body found the term “sustainable materials” lacked a clear definition.

It also determined that Nike had not provided evidence showing that the advertised products had no negative environmental impact over their full life cycle.

As a result, ASA ruled the ad misleading.

Implication for advertisers

The decision underscores stricter scrutiny of environmental claims in fashion advertising.

According to ASA’s updated guidelines, any broad claim of sustainability must come with a clear explanation and robust evidence, especially when made across a brand’s entire product line.

NKE Price Action: Nike shares were up 1.93% at $65.00 at the time of publication on Wednesday, according to Benzinga Pro data.

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