ACCC releases principles to guide corporate environmental claims

The news: The Australian Competition and Consumer Commission (ACCC) has published eight principles to help businesses ensure any environmental marketing and advertising claims they make about their products or services are clear and accurate, and do not mislead consumers.

The numbers: The eight principles comprise the ACCC’s final guidance on environmental claims, setting out the regulator’s view of good practice and making businesses aware of their obligations under the Australian Consumer Law. The ACCC's guidance incorporates feedback from over 150 stakeholders across consumer, business and environmental organisations.

The context: The ACCC's guidance, which updates and replaces an earlier version, was informed by an internet sweep to identify misleading environmental and sustainability marketing claims in October/November 2022. The regulator said that as part of its 2023-24 Compliance and Enforcement Priorities, it is prioritising consumer, product safety, fair-trading and competition concerns in relation to environmental and sustainability claims.

The principles are:

1. Make accurate and truthful claims

2. Have evidence to back up your claims

3. Don’t hide or omit important information

4. Explain any conditions or qualifications on your claims

5. Avoid broad and unqualified claims

6. Use clear and easy-to-understand language

7. Visual elements should not give the wrong impression

8. Be direct and open about your sustainability transition

What they said: “Misleading environmental and sustainability claims continue to be an enforcement and compliance priority for the ACCC, and we have several active investigations underway,” ACCC Acting Chair Catriona Lowe said.