On 14 July 2023, the Australian Competition and Consumer Commission (ACCC) published the Environmental and sustainability claims – Draft guidance for business (Draft Guidance). The Draft Guidance aims to assist businesses in making environmental and sustainability claims while avoiding the risk of misleading or deceptive behaviour.
Why change existing guidelines on environmental and sustainability claims?
The last guidance material produced by the ACCC was published in 2011. Being over a decade old, the material does not adequately reflect a consumer law landscape that has significantly evolved. This is evident as both the ACCC, and the Australian Securities and Investments Commission (ASIC) have had an increased focus on actively pursuing action against greenwashing since early last year. ACCC’s Deputy Chair, Catriona Lowe, said:
“proposed response to climate change, environmental and sustainable initiatives, which are all common words in boardroom meetings these days.”
Additionally, the changes come as a response to findings of the ACCC’s 2022 internet sweep of environmental claims. This sweep consisted of 247 businesses across a wide range of sectors and revealed that 57% of those businesses involved had potentially made misleading and deceptive environmental or sustainability claims.
What is the ACCC seeking input on?
The Draft Guidance is open for comment until 15 September 2023 where interested parties can submit feedback to the ACCC by completing an online survey. The ACCC is seeking input on the processes behind deciding when and how businesses should make environmental or sustainability claims. In addition, the regulator is seeking feedback on whether the previously published Draft Guidance provides sufficient instruction to facilitate those decisions. ACCC Chair, Gina Cass-Gottlieb, said:
“Our draft guidance sets out what the ACCC considers to be good practice when businesses make environmental claims about their products and services as well as making them aware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.”
Why is the ACCC seeking input?
This provides the chance for stakeholders to participate in the consultation process. ACCC Chair, Gina Cass-Gottlieb, said:
“We would like to hear from businesses on whether our draft guidance improves their confidence in making legitimate environmental and sustainability claims as well as if they have seen concerning green claims made by other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.”
Links and further references
Other links
ACCC announcement: Environmental and sustainability claims – Draft guidance for business
Environmental and sustainability claims – Draft guidance for business (Draft Guidance)
ACCC 2022 internet sweep of environmental claims
Environmental and sustainability guidance – Online Survey
Further information about Australian Consumer Law and greenwashing
If you need advice on compliance with Australian Consumer Law or greenwashing in particular, contact us for a confidential and obligation-free discussion:
Malcolm Burrows B.Bus.,MBA.,LL.B.,LL.M.,MQLS.
Legal Practice Director
T: +61 7 3221 0013 (preferred)
M: +61 419 726 535
E: mburrows@dundaslawyers.com.au
Disclaimer
This article contains general commentary only. You should not rely on the commentary as legal advice. Specific legal advice should be obtained to ascertain how the law applies to your particular circumstances.
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