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Australian regulator investigates greenwashing

Parliament of Victoria , Melbourne , Australia. Courtesy of Adobe Stock.

March 6, 2023

The Australian Competition and Consumer Commission has announced an investigation into Greenwashing, according to a report in AdNews.

Including 247 brands, the investigation ran from October to November 2022 and found that 57% of businesses made concerning claims, according to the report. As brands across sectors respond to growing consumer demand for sustainable products and advertising, a notable trend in digital signage and marketing in particular, the official investigation raises questions about the legitimacy of some of these responses, and shows that government bodies and consumer protection agencies are taking notice.

"Our sweep indicates a significant proportion of businesses are making vague or unclear environmental claims," Catriona Lowe, deputy chair at the ACCC, said in the report. "This warrants further scrutiny. 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 continued. "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. 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 into businesses and claims identified through the sweep. We will take enforcement action where it is appropriate to do so as it is critical that consumer trust in green claims is not undermined."

The ACCC has also made the full report of the investigation available to the public.