ACCC deputy chair Delia Rickard said the ACCC is actively targeting “greenwashing” this year, warning businesses that make false or misleading claims undermine consumer trust and confidence in the market and that they will be held to account.
Ms Rickard said the ACCC is hearing growing concerns that some businesses are falsely promoting environmental or green credentials to capitalise on changing consumer preferences.
“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.
She said claims needed to be backed up with reliable scientific reports, transparent supply chain information, reputable third-party certification, or other forms of evidence or businesses will be asked to substantiate their claims.
If these claims cannot be verified, Ms Rickard said the ACCC will take enforcement action.
“Through the consumer law, the ACCC plays a part by ensuring that businesses tell the truth, but there will also be roles for standards bodies, certification schemes, industry and governments via policy reform,” Ms Rickard said.
“The ACCC is actively monitoring green claims in the market and will be considering what steps can be taken to improve their integrity. This will include engaging with industry and producing guidance for businesses.”
She said the ACCC acknowledged those businesses transitioning to more sustainable practices, recognising their right to promote the steps they are taking as part of that journey.
“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. Businesses in these positions need to be careful to not overstate the status of their transition through the claims they make,” she said.
