ACCC asks businesses suspected of ‘greenwashing’ to substantiate claims
The ACCC will investigate a number of business suspected of making misleading environmental and sustainability marketing claims, following an internet sweep conducted late last year.
The sweep reviewed 247 companies, with 57% found to have made concerning claims about their environmental credentials, of which will be subject to further scrutiny from the ACCC.
The cosmetic, clothing and footwear and food and drink sectors were found to have the highest proportion of concerning clams among other sectors targeted in the operation. Other sectors investigated included energy, vehicles, household products and appliances.
ACCC deputy chair, Catriona Lowe, said: “Consumers are now, more than ever, making purchasing decisions on environmental grounds. Unfortunately, it appears that rather than making legitimate changes to their practices and procedures, some businesses are relying on false or misleading claims. This conduct harms not only consumers, but also those businesses taking genuine steps to implement more sustainable practices.”
Lowe explained that businesses using 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.”
Those businesses under investigation for potential greenwashing will be aske by the ACCC to substantiate their claims, with the consumer watchdog also set to conduct a range of education activities with business including economy-wide guidance material and targeted guidance for specific sectors.
The ACCC has also outlined plans to engage with industry associations to “improve compliance with the Australian Consumer law”.
Lowe added: “”Importantly, we encourage businesses to come forward if they become aware they have made false or misleading marketing claims. Businesses who cooperate and advise of any issues with their operations, will be considered more favourably than those who wait for the ACCC to unearth these problems.”
Last month, Pollinate CEO and director of The Influence Group, Howard Parry-Husbands, shared his advice for marketers wanting to avoid an ACCC prosecution for greenwashing.
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