The Australian Competition and Consumer Commission (ACCC) is to actively target ‘greenwashing’ as this year continues, issuing a warning to businesses that decide to make false or misleading claims about the products they sell.
Deputy Chair of the ACCC, Delia Rickard said businesses needed to be ready to substantiate any environmental or sustainability claims they make when marketing their goods and services.
“Unfortunately, the ACCC is hearing growing concerns that some businesses are falsely promoting environmental or green credentials to capitalise on changing consumer preferences,” Ms Rickard said.
“Broad terms like ‘environmentally friendly’, ‘green’, or ‘sustainable’ have limited value and may mislead consumers, as they rarely provide enough information about what that exactly means in terms of the product or service consumers are considering purchasing,” she said.
“It is important that businesses can back up the claims they are making, whether through reliable scientific reports, transparent supply chain information, reputable third-party certification, or other forms of evidence.”
Ms Rickard said the ACCC wouldn’t hesitate to take enforcement action where it saw that consumers were being misled or deceived by green claims.
She urged businesses to step into the shoes of a consumer before making environmental claims about a product.
“A business’s sustainability transition doesn’t happen overnight – it’s a long process up and down the supply chain,” she said.
“While businesses may look to use short and snappy slogans and claims, rather than lengthy explanations of measures underway, it is important to convey accurate information to consumers,” she said.
“Businesses in these positions need to be careful to not overstate the status of their transition through the claims they make,” Ms Rickard said.
