The ACCC has released guidance as part of its mission to end greenwashing. 

In a bid to combat misleading environmental claims made by businesses, the Australian Competition and Consumer Commission (ACCC) has unveiled draft guidance to improve the integrity of sustainability statements. 

The move aims to shield consumers from falling victim to ‘greenwashing’, a deceptive practice where companies make exaggerated or false claims about their eco-friendly practices. 

The ACCC's recent greenwashing internet sweep revealed that a staggering 57 per cent of the reviewed businesses were potentially engaging in misleading environmental advertising.

Gina Cass-Gottlieb, Chair of the ACCC, says there is a need for honesty and transparency from companies as consumers grow increasingly environmentally conscious. 

“False or misleading claims can undermine consumer trust in all green claims, particularly when consumers are often paying higher prices based on these claims,” she said. 

Furthermore, she highlighted that businesses genuinely adopting sustainable practices suffer a competitive disadvantage when others resort to greenwashing without incurring the same costs.

The draft guidance outlines eight practical principles that the ACCC urges businesses to adhere to when making environmental claims. 

By following these principles, the regulator says companies can minimise the risk of misleading consumers and violating the Australian Consumer Law.