The Australia Competition and Consumer Commission (ACCC) has published draft guidance to advise businesses on how to avoid greenwashing.
The draft guidance identifies eight targets that the ACCC will focus on when businesses make environmental claims.
ACCC chair Gina Cass-Gottlieb said accurate and truthful claims and evidence are a strong focus, alongside avoiding broad and unqualified claims and not hiding important information.
“If you make a claim about the environmental or sustainability benefits of your product or service – make sure it’s right, and if you are unsure or can’t substantiate these claims, then don’t make the claim,” she said.
In its draft phase, the ACCC is seeking feedback from businesses, consumers and other stakeholders for the final copy that is expected to be released later this year.
“We would like to hear from businesses on whether our draft guidance improves their confidence in making legitimate environmental and sustainability claims as well as if they have seen concerning green claims made by other businesses,” Cass-Gottlieb said.
“We also want to hear from consumers on how businesses can provide useful and relevant information about any green claims so they can be confident in the accuracy of these claims.”
It comes amid an ongoing focus by the ACCC towards greenwashing claims, including a recently launched taskforce, all in relation to a greenwashing internet sweep conducted last year which found 57 per cent of businesses were making potentially misleading environmental claims.
“As consumers become more environmentally conscious, businesses need to be honest and transparent when making environmental or sustainability claims so consumers are not being misled,” Cass-Gottlieb said.
“False or misleading claims can undermine consumer trust in all green claims, particularly when consumers are often paying higher prices based on these claims.
“Similarly, businesses that are taking genuine steps to adopt sustainable practices are put at a competitive disadvantage by businesses that engage in ‘greenwashing’ without incurring the same costs.
“Our draft guidance sets out what the ACCC considers to be good practice when businesses make environmental claims about their products and services as well as making them aware of their obligations under the Australian Consumer Law.”