The Australian Competition and Consumer Commission (ACCC) is sweeping the internet to catch businesses misleading consumers with false environmental and sustainability marketing claims (greenwashing) and fake reviews.
Deputy Chair of the ACCC, Delia Rickard said the two internet sweeps sought to identify deceptive advertising and marketing practices being used by businesses or industries.
Ms Rickard said that at least 200 company websites, including some in Western Australia, would be reviewed in the greenwashing sweep across a range of sectors, including energy, vehicles, household products and appliances, food and drink packaging, cosmetics, clothing and footwear.
“As consumers become increasingly interested in purchasing sustainable products, there are growing concerns that some businesses are falsely promoting their environmental or green credentials,” Ms Rickard said.
“Misleading claims about products or services undermine consumer trust and confidence in the market,” she said.
“This sweep forms a core part of our work in actively monitoring for ‘greenwashing’ in the market and will help inform what steps businesses can take to improve the integrity of their environmental claims.”
Ms Rickard said the other sweep, targeting fake or misleading online reviews and testimonials, was the first in a series of smaller-scale sweeps focused on deceptive practices in the digital marketplace.
She said the sweep would target misleading reviews posted to business’s websites, Facebook pages and third-party review platforms.
“Misleading advertising by influencers on social media will be considered in a second sweep which will focus on identifying posts that fail to clearly disclose advertising or sponsorship,” she said.
“Unfortunately, consumers are facing an ever-increasing range of manipulative marketing techniques designed to exploit or pressure them, due in part to the huge number of online information sources available.
“Consumers often rely on reviews and testimonials when making purchases, but misleading reviews can be harmful.”
The ACCC Deputy Chair said at least 100 businesses would be reviewed in the initial sweep, focused on areas in which consumers most commonly relied on reviews, including household appliances, electronics, fashion, beauty products, food and restaurants, travel services, sport, home improvement, kitchenware, health products, as well as furniture and bedding.
She said the ACCC was looking to identify businesses, review platforms or sectors where there was a pattern of misleading online reviews and testimonials that had the potential to cause significant consumer or small business harm.
“The sweeps will be followed up with compliance, education and potential enforcement activities and we also want to improve awareness to enable consumers to make more informed purchasing decisions,” Ms Rickard said.
