Published
Deputy Chair of the Australian Competition and Consumer Commission, Ms Louise Sylvan, today warned* businesses to be particularly careful about their environmental claims.
"As companies try to position themselves with green credentials, it's getting hard to find a product without some kind of green claim.
"Companies risk breaching the Trade Practices Act if they give an overall impression to consumers their product is environmentally friendly when it isn't.
"The right of consumers to choose wisely in the market is important – it's the basis of the free market," Ms Sylvan said.
"When those demand-side decisions are also a crucial element in consumers contributing to Australia meeting its commitments to reduce greenhouse gas emissions, then misleading conduct causes far more damage than just individual consumer detriment.
"Undermining the integrity of environmental claims through over-generalised or dishonest claims also undermines competition to produce cleaner more efficient products and industries."
The ACCC has already taken action against a number of companies in relation to their 'green' claims.
"My advice to firms is to:
- be honest and truthful – don't exaggerate and don't mislead by silence
- be specific – don't risk a claim, for example, that applies to the packaging only but appears to apply to the whole product
- use language which non-experts can understand – don't try and bamboozle consumers with meaningless scientific jargon
- explain why your claim has significant benefits – this will help consumers judge whether your product deserves their custom,
- and be able to substantiate your claim.
"And lastly, read the the ACCC's Green marketing and Trade Practices Act guideline carefully."
Contact details
Media inquiries
Ms Lin Enright, Media, (02) 6243 1108 or 0414 613 520
Additional contacts
Ms Louise Sylvan, Deputy Chair, 0410 610 326
Release # NR 121/08
General inquiries
Infocentre 1300 302 502
Responsible regulator
Australian Competition and Consumer Commission
