Clothing and footwear brands have the highest proportion of concerning statements about their environmental or sustainability practices, according to the Australian Competition and Consumer Commission. Cosmetics and food and drink are also said to be on par with fashion.
The results are from a recent greenwashing sweep by the ACCC in October/November 2022. Of the 247 businesses reviewed during the sweep, 57 per cent were identified as having made concerning claims about their environmental credentials.
ACCC Deputy Chair Catriona Lowe said the concerning results warrant further scrutiny.
"Consumers are now, more than ever, making purchasing decisions on environmental grounds,” Lowe said. “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 said that businesses using broad claims like ‘environmentally friendly’, ‘green’, or ‘sustainable’ must 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,” Lowe continued.
"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 said it will also conduct a range of education activities with businesses, including updating economy-wide guidance material, in addition to targeted guidance for specific sectors.
"We want to see businesses taking steps to ensure that environmental claims are accurate as well as meaningful for consumers,” Lowe said. “Our sweep has shown that claims are most useful where they are relevant, clear, reliable and transparent."
"We will engage directly with businesses and industry associations to improve compliance with the Australian Consumer Law."
"Importantly, we encourage businesses to come forward if they become aware they have made false or misleading marketing claims. 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," Lowe said.
Sweepers reviewed 247 company websites across a range of targeted sectors including energy, vehicles, household products and appliances, food and drink packaging, cosmetics, clothing and footwear.