Jurisdiction
For products sold in Australia
Law Summary
Under the ACL, Australian businesses making environmental or sustainability claims must ensure they are truthful, accurate, specific, and scientifically substantiated to avoid misleading consumers. The competition authority (ACCC) actively monitors and enforces against ‘greenwashing’ practices.
Law Obligation
- Use clear and specific language in claims, avoiding broad statements like “green” or “environmentally friendly” which may lack clear meaning.
- Substantiate environmental claims with accurate, scientific, or test data to maintain credibility. Exercise caution when the scientific basis for a claim is under dispute or inconclusive, ensuring claims are not presented as universally accepted.
- Exercise caution with widely recognised symbols in images to avoid potential misleading impressions.
- Specify whether environmental benefits refer to the packaging or product to avoid misconceptions.
- Assess the product life cycle, including recycling, manufacturing, and disposal processes, when making claims.
- Follow specific requirements for substantiating common green claims, such as “recyclable”, “renewable or green energy,” among others.
- Ensure environmental claims accurately reflect benefits, avoiding any overstatement that could mislead consumers.
