Now the ACCC tackles misleading environmental claims

After finding that more than half of the 247 businesses it reviewed last year were making “vague or unclear” environmental claims, the Australian Competition and Consumer Commission (ACCC) has launched investigations into several cases, with more likely to be asked to substantiate their claims.

Why it matters

The move signals a tougher approach to greenwashing by regulators and comes days after the Australian Securities & Investments Commission (ASIC) announced it was suing a corporate pension fund as part of its crackdown on false sustainability claims.

Takeaways 

• The sectors with the highest proportion of problematic claims include cosmetics, clothing and footwear, and food and drink.
• The ACCC will offer targeted guidance for specific sectors and undertake a range of education activities.
• The Commission’s research indicates that claims are most useful when they are “relevant, clear, reliable and transparent”.

Key quote

“Businesses using broad claims like ‘environmentally friendly’, ‘green’, or ‘sustainable’ are obliged to back up these claims through reliable scientific reports, transparent supply chain information, reputable third-party certification or other forms of evidence” – Catriona Lowe, deputy chair, ACCC.

Sourced from ACCC