ACCC takes GLAD bags manufacturer Clorex to court in greenwashing case
The news: The ACCC is taking Clorox Australia to court over labelling on GLAD-branded kitchen and garbage bags as the competition regulator continues its greenwashing crackdown.
The numbers: In a statement, the ACCC said it alleges that labels in GLAD Kitchen Tidy Bags and Garbage Bags stated they were made of 50% recycled “ocean plastic” collected from an ocean or sea, when that was not the case.
It alleges that the bags were partly made from plastic that was collected from communities in Indonesia up to 50 kilometres from a shoreline, and not from the ocean or sea.
The products were reportedly withdrawn from supply to retailers from July 2023.
Clorox Australia is a subsidiary of NYSE-listed The Clorox Company. Over the past year The Clorox Company’s share price has fallen 11.31% to USD142.34 ($221.08).
What they said: “We are concerned that, by its alleged conduct, Clorox deprived consumers of the opportunity to make informed purchasing decisions, and may have put other businesses making genuine environmental claims at an unfair disadvantage,” said ACCC chair Gina Cass-Gottlieb
“This action reflects our enforcement priority to take action against businesses making false or misleading environmental claims. Increasingly consumers choose the products they buy based on their environmental impact, and in doing so they must be able to rely on the environmental claims made by businesses being accurate.”
The source: ACCC media release