Image from the Michigan Journal of Economics
On 29 March 2023, the Senate referred an inquiry into greenwashing for inquiry. and report by early December 2023.
THE CLOSING DATE FOR SUBMISSIONS IS 8 JUNE 2023 now the 22nd of June, and you can also request an extension on top of that if you need more time.
Greenwashing is when environmental and eco-friendly claims are made about products and services that are MISLEADING, DECEPTIVE or completely Untrue, it is a form of fraud and it is ILLEGAL!
Greenwashing is rife in Australia. It is harmful to the environment and to people. IT MUST BE STOPPED.
Individuals, organisations, and businesses can make public or confidential submissions. Submissions can be partly confidential by asking for your name and details to be removed or you can request that it not be made public at all.
Submissions do not need to be complicated. You may just say that you want greenwashing laws to be made stronger and to be better policed. But, you will need to give examples of your concerns as stated in the terms of references.
The Australian Competition and Consumer Commission (ACCC) is cracking down on greenwashing. See the ACCC page – Green Marketing and the Australian Consumer Law (ACL):
“Note that the conduct only needs to be likely to mislead or deceive; it does not matter whether the conduct actually misled anyone, or whether the business intended to mislead—if the conduct was likely to mislead or deceive, the ACL is contravened.”
“The ACL applies to all forms of marketing, including claims on packaging, labeling and in advertising and promotion across all mediums (print, TV, radio, and internet). This means that any environmental claims you [business and organisations] are considering need to be assessed against the requirements of the ACL. Failure to abide by the rules set out in the ACL can result in serious penalties.”
According to the ACCC, there here are two main provisions in the Australian Consumer Law (ACL) that affect environmental claims in marketing;
1 – Misleading and Deceptive Conduct
- Silence – Leaving out important information. “For example, putting ‘made from recycled material’ on a product when only a part of the product (such as the packaging) is made from recycled material could be misleading by silence.”
- Predictions – “if the maker had no reasonable ground for making it, or if the prediction should have been qualified and was not. A marketer making a statement about something that will happen in the future, such as ‘by 2010 this product will be made entirely from wood pulp from plantation trees’.”
2 – False or Misleading Representations
- Sponsorship—this connotes some form of backing by another party. The unauthorised use of a trademark may breach this provision.
- Approval—this provision is mainly used when a business claims to have approval from a government agency or licensing board for its products, when no such approval has been given.
- Performance characteristics—companies should not falsely claim that their goods or services have certain capabilities or effects they do not have.
- Benefits—companies should not claim that a particular good or service has certain environmental benefits if these claims cannot be substantiated.
Feedough gives the following examples of greenwashing:
- Environmental Imagery -Using images of leaves, animals, green packaging, etc. are all ways of classic greenwashing. In truth, genuinely eco-friendly products generally use simpler images and plain packaging.
- Misleading labels – Certain products are labeled “Certified”, “100% organic”, etc. without any supportive information to prove the same. There is a good chance that these labels are self-created and self-declared.
- Hidden trade-offs – Corporations can put up an act of being environmentally friendly and sustainable but have a very non-environmental friendly trade-off. An example is when clothing companies use “natural” or “recycled” materials while the clothing is actually developed through exploitative conditions. Genuine companies would definitely provide more information on energy, water conditions, greenhouse gas emissions, etc.
- Irrelevant Claims – Sometimes, you might come across labels that say they are free of certain chemicals. The substance might actually be banned by the law and is irrelevant to advertise as going green.
- Lesser of two evils – This refers to when the company’s claim is true within the product category, but a greater risk or environmental impact prevails. An example is a company selling organic cigarettes.
Also note, Fine Print – According to Investopedia, “One common form of greenwashing is to include misleading labeling or bury environmentally unsound practices in the fine print.”
Regarding the terms of reference (f) any other related matters
Not-for-profit organisations are also subject to the ACL (see below) and even Local Governments might not be exempt from it. The ACL protects consumers who pay for products and services:
- Local Governments provide services and ratepayers pay for those services through their rates. My LG, the City of Stirling, like many other LGs in Australia, has adopted a Corporatised Governance and Board of Directors model of management called the New Public Management approach to running public sector organisations that was first introduced in the UK during the Thatcher era, and has since been adopted by other industrialised countries. The City of Stirling refers to ratepayers as ‘customers’ and they have a Customer Service Charter. According to one lawyer I spoke to, because LGs provide services for payment they are subject to Australian Consumer Law.
- Not-for-Profit Organisations also have to comply with Australian marketing and advertising laws, see Justice Connect – Not-For-Profit Law – Communications and advertising, and their publication – The laws of advertising and your community organisation:
If you have noticed greenwashing by Local Governments (employees or elected members) or by Not-for-Profit organisations you can make a submission under (f) any other related matters, according to the Senate secretariat.
Report Issues to:
- Australian Competition & Consumer Commission (ACCC)
- WA Consumer Protection
- Or your state’s consumer protection agency.
Related articles:
- How corporations use greenwashing to convince you they are battling climate change
- Greenwashing era is over, say ad agencies, as regulators get tough
- Greenwashing is driving our descent into climate catastrophe. But we can stop it
- ‘Greenwashing’: WA jarrah cleared for Alcoa mines sold as ‘sustainable’
- What Is Greenwashing? – Types & Examples
- Here are the 7 sins of greenwashing, 24 Nov 2022
- WhatIs.com – What is greenwashing?
By Leisha Jack
