Green Wash Advertising Crackdown
Sourced: Law Society of New South Wales
ACCC targets misleading environmental claims
GREEN WASH ADVERTISING – Businesses that offer consumers a green product or service can face criminal penalties up to $1.1 million, as well as negative publicity, if green claims don’t stack up.
A large number of vigilant non-government organisations are constantly on the lookout for green claims that are misleading, and the Australian Consumer and Competition Commission appears to have made green claims an enforcement priority.
A notable series of investigations related to claims made by the Australian airconditioning industry. One company claimed that its products were ‘environmentally friendly’, whereas one of the gases it used was actually a potent greenhouse gas, and another was ozone-depleting.
The ACCC took action for both the text and the images – of trees, the sea and the moon – used in the company’s marketing materials.
It considered that the images conveyed a strong environmental message to consumers. Car manufacturers have been investigated for faulty claims about amounts of carbon emissions that would be offset by planting trees.
The ACCC was concerned about V8 Supercars claims as part of its ‘racing green program’ that planting 10,000 native trees would offset the carbon emissions from the V8 championship series as well as all associated transport emissions of the racing teams travelling to events.
The ACCC was concerned that consumers might think the trees would absorb the emissions in a short period of time, when in actual fact the emissions from one year of racing would only be absorbed by these trees over several decades.
An important principle for a business making a green claim is to consider the whole life cycle of the product. Don’t make a claim without the scientific evidence to back it up.
And make sure green statements are not too confusing for consumers – experience shows that some environmental benefits can be too complex to translate into a short sharp marketing message.
The ACCC has produced several green marketing guides and your solicitor will be able to advise on green marketing claims.