What is Greenwashing? And how to avoid it!
So, what is Greenwashing? Put simply, Greenwashing is an unsupported claim to trick consumers into believing that a product or service is environmentally friendly or have a greater positive environmental impact than what is true.
This is often used as a marketing strategy by companies to take advantage of the increasing demand for environmentally friendly goods and services, helping generate positive publicity, boost brand image and increase profits without actually reducing their carbon footprint.
More and more consumers are starting to pay closer attention to the details, researching online or checking product labels when they’re considering a brand or product. Terms such as ‘eco-friendly’, ‘green’, ‘all-natural’ and ‘fully recycled’ are broad and may have multiple meanings, sometimes even used to justify a price premium. With little to no strict regulations on their usage in advertisements it can be confusing to navigate.
But this does not mean a free for all, there are Australian Consumer Law (ACL) standards covering misleading and deceptive conduct when it comes to Green Marketing.
engaging in misleading or deceptive conduct in trade or commerce; and / or
making false or misleading representations about specific aspects of goods and services
Australian companies were put on notice back in September 2022 by consumer watchdog the Australian Competition & Consumer Commission (ACCC). Deputy Chair Delia Rickard said “As consumers become increasingly interested in purchasing sustainable products, there are growing concerns that some businesses are falsely promoting their environmental or green credentials. Misleading claims about products or services undermine consumer trust and confidence in the market.”
In October 2022, the ACCC started conducting internet sweeps to identify businesses making misleading sustainability or environmental marketing claims.
Example of Greenwashing from ACCC, Green marketing and the Australian Consumer Law.
A company that produced a range of environmentally friendly plastic kitchen, garbage and freezer bags promoted their products with several environmental claims including ‘even if this bag isn’t thrown in the bin it won’t end up as litter’ and ‘this bag won’t contribute to the landfill problem. It will make it disappear’.
Additionally, the company claimed on its website that its bags would ‘compost just like kraft paper bags, sticks and twigs, yard trimmings and food scraps which are quickly broken down’ and stated that when composted its bags would biodegrade in 28 days.
The company claimed the environmental benefits were due to the tapioca starch used to make the bags but could not substantiate these claims.
The court declared the company had engaged in false or misleading conduct or conduct likely to mislead or deceive, misrepresented the benefits and performance characteristics of the bags and misled the public on the nature and characteristics of the bags.
What do you need to do?
When it comes to making environmental claims about your business, product or service, it is imperative to be honest, accurate and most importantly be able to back up any claim with data and evidence. It should be explained in simply, easy to understand language.
If this has sparked more questions for you on Greenwashing or you would like to talk to someone about your business, please don’t hesitate to contact us via email hello@ourfootprint.com.au or call 0414 662 445.
You can also find loads of FREE information on our website Resources page at www.ourfootprint.com.au/resources