Consumer watchdog swings focus to ‘greenwashing’

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Businesses must be ready to substantiate any environmental or sustainability claims when marketing their goods and services, the ACCC has warned.

Businesses must be ready to substantiate their environmental and sustainability claims, amid a crackdown on so-called greenwashing by the Australian Competition and Consumer Commission.

Businesses must be ready to substantiate any environmental or sustainability claims when marketing their goods and services, ACCC deputy chair Delia Rickard has warned.Businesses that make false or misleading claims undermine consumer trust and market confidence, 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.“Where we have concerns, we will be asking businesses to substantiate their claims. The ACCC won’t hesitate to take enforcement action where we see that consumers are being misled or deceived by green claims.

”Many businesses go to extraordinary lengths to make their processes, products and services more sustainable,” Ms Rickard said.“This innovation and investment should be protected from unscrupulous behaviour of other businesses making green claims without incurring the same costs.

 

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