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An online review by the regulator finds many fail to make “legitimate changes to practices and procedures”.
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ACCC sweep uncovers dubious green claims by one in two businesses
03 March 2023
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An ACCC investigation has uncovered widespread greenwashing with more than one in two businesses making dubious claims about their environmental or sustainability practices.
ACCC deputy chair Catriona Lowe said 57 per cent of the 247 businesses reviewed had made vague or unclear environmental claims which required further scrutiny.
“Consumers are now, more than ever, making purchasing decisions on environmental grounds,” said Ms Lowe.
“Unfortunately, it appears that rather than making legitimate changes to their practices and procedures, some businesses are relying on false and misleading claims.”
“This conduct harms not only consumers, but also those businesses taking genuine steps to implement more sustainable practices.”
The ACCC found the cosmetic, clothing, footwear, and food and drink sectors were guilty of the most unsupported claims.
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The regulator said those that made sustainability declarations were required to back it up with evidence or would face further action.
“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,” said Ms Lowe.
“Where we have concerns, we will be asking businesses to substantiate their claims.”
“Already, we have several active investigations underway across the packaging, consumer goods, food manufacturing and medical devices sectors for alleged misleading environmental claims and these may grow as we continue to conduct more targeted assessments.”
To encourage improvements the regulator said it aimed to educate businesses and update guidance material clarifying the requirements for “green” claims.
“The sweep has helped inform our forthcoming guidance about what steps businesses need to take to improve the integrity of their environmental claims,” said Ms Lowe.
“We want to see businesses taking steps to ensure that environmental claims are accurate as well as meaningful for consumers.”
She said the ACCC would consult with businesses and industry associations to improve compliance surrounding greenwashing and consumer law.
“Importantly, we encourage businesses to come forward if they become aware they have made false or misleading marketing claims,” she said.
“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.”
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