diff --git a/packages/webpack-cli/lib/bootstrap.js b/packages/webpack-cli/lib/bootstrap.js
index b6fc82879c6..87160c2215a 100644
--- a/packages/webpack-cli/lib/bootstrap.js
+++ b/packages/webpack-cli/lib/bootstrap.js
@@ -4,6 +4,7 @@ const logger = require('./utils/logger');
 const { isCommandUsed } = require('./utils/arg-utils');
 const argParser = require('./utils/arg-parser');
 const leven = require('leven');
+const { options: coloretteOptions } = require('colorette');
 
 process.title = 'webpack-cli';
 
@@ -23,6 +24,9 @@ const runCLI = async (cliArgs) => {
         // If the unknown arg starts with a '-', it will be considered an unknown flag rather than an entry
         let entry;
 
+        // enable/disable colors
+        coloretteOptions.enabled = parsedArgs.opts.color;
+
         if (parsedArgs.unknownArgs.length > 0) {
             entry = [];
 
diff --git a/packages/webpack-cli/lib/webpack-cli.js b/packages/webpack-cli/lib/webpack-cli.js
index 21682f939f5..9a2957003eb 100644
--- a/packages/webpack-cli/lib/webpack-cli.js
+++ b/packages/webpack-cli/lib/webpack-cli.js
@@ -235,10 +235,6 @@ class WebpackCLI {
                     }
                 }
 
-                if (!coloretteOptions.enabled && args.color) {
-                    coloretteOptions.enabled = args.color;
-                }
-
                 stats.colors = typeof stats.colors !== 'undefined' ? stats.colors : coloretteOptions.enabled;
 
                 return stats;
diff --git a/test/json/json.test.js b/test/json/json.test.js
index a248412bc0d..19a84c0cc43 100644
--- a/test/json/json.test.js
+++ b/test/json/json.test.js
@@ -2,6 +2,9 @@
 const { run } = require('../utils/test-utils');
 const { stat, readFile } = require('fs');
 const { resolve } = require('path');
+const { green } = require('colorette');
+
+const successMessage = 'stats are successfully stored as json to stats.json';
 
 describe('json flag', () => {
     it('should return valid json', () => {
@@ -16,7 +19,29 @@ describe('json flag', () => {
     it('should store json to a file', (done) => {
         const { stdout, exitCode } = run(__dirname, ['--json', 'stats.json']);
 
-        expect(stdout).toContain('stats are successfully stored as json to stats.json');
+        expect(stdout).toContain(`${green(successMessage)}`);
+        expect(exitCode).toBe(0);
+
+        stat(resolve(__dirname, './stats.json'), (err, stats) => {
+            expect(err).toBe(null);
+            expect(stats.isFile()).toBe(true);
+
+            readFile(resolve(__dirname, 'stats.json'), 'utf-8', (err, data) => {
+                expect(err).toBe(null);
+                expect(JSON.parse(data)['hash']).toBeTruthy();
+                expect(JSON.parse(data)['version']).toBeTruthy();
+                expect(JSON.parse(data)['time']).toBeTruthy();
+                expect(() => JSON.parse(data)).not.toThrow();
+                done();
+            });
+        });
+    });
+
+    it('should store json to a file and respect --no-color', (done) => {
+        const { stdout, exitCode } = run(__dirname, ['--json', 'stats.json', '--no-color']);
+
+        expect(stdout).not.toContain(`${green(successMessage)}`);
+        expect(stdout).toContain(successMessage);
         expect(exitCode).toBe(0);
 
         stat(resolve(__dirname, './stats.json'), (err, stats) => {
diff --git a/test/unknown/unknown.test.js b/test/unknown/unknown.test.js
index 903122b2495..b060e1fe247 100644
--- a/test/unknown/unknown.test.js
+++ b/test/unknown/unknown.test.js
@@ -1,12 +1,22 @@
 const { run } = require('../utils/test-utils');
+const { red } = require('colorette');
 
 describe('unknown behaviour', () => {
     it('warns the user if an unknown flag is passed in', () => {
         const { stderr, exitCode } = run(__dirname, ['--unknown']);
         expect(stderr).toBeTruthy();
+        expect(stderr).toContain(`${red('Unknown argument: --unknown')}`);
+        expect(exitCode).toBe(2);
+    });
+
+    it('throws error for unknow flag and respect --no-color', () => {
+        const { stderr, exitCode } = run(__dirname, ['--unknown', '--no-color']);
+        expect(stderr).toBeTruthy();
+        expect(stderr).not.toContain(`${red('Unknown argument: --unknown')}`);
         expect(stderr).toContain('Unknown argument: --unknown');
         expect(exitCode).toBe(2);
     });
+
     it('suggests the closest match to an unknown flag', () => {
         const { stderr, stdout, exitCode } = run(__dirname, ['--entyr', './a.js']);
         expect(stderr).toContain('Unknown argument: --entyr');