Such terms are vague and risk misleading consumers Orientation project For companies released by the Australian Competition and Consumer Commission on Friday. Instead, it should be replaced with more specific language that clearly defines environmental benefits.
According to the guidelines, Australian consumer law “makes it illegal for businesses to engage in conduct that is misleading, deceptive or likely to mislead or deceive”. She added that this applies even if the intention was not to mislead and no losses or damages occurred.
The warning comes as scrutiny of “greenwashing” – using false or misleading environmental claims – is growing around the world. Multinational corporations grapple with differing legal opinions in different countries about what they can and cannot say about the impact of their activities on global warming.
The Cooperative Insurance Advisory Committee also advised companies to be direct and transparent when communicating how they are transitioning to more sustainable business models. For example, they should avoid saying that they have achieved steps in a process if it is still in progress.
The authority has a history of combating allegations of greenwashing and this has extended into areas such as targeting misleading endorsements by social media influencers and challenging Google Alphabet Inc on the privacy policy. DM
