ACCC releases new guidelines for businesses over environmental claims

ACCC new guidelines environmental
The ACCC’s recent report revealed 57 per cent of businesses make doubtful eco claims. (Source: Bigstock)

Fresh draft guidelines to help protect consumers from greenwashing have been released by the Australian Competition & Consumer Commission (ACCC).

The ACCC guidance aims to address the issue identified by the commission’s recent report, which found 57 per cent of businesses reviewed were making potentially misleading environmental claims.

The guidance includes eight practical principles for businesses to follow in order to avoid misleading consumers and contravening the Australian Consumer Law.

“False or misleading claims can undermine consumer trust in all green claims, particularly when consumers are often paying higher prices based on these claims,” said ACCC chair Gina Cass-Gottlieb.

These claims also create a competitive disadvantage for businesses taking genuine steps to adopt sustainable practices, Cass-Gottlieb continued.

The ACCC is seeking feedback from businesses, consumers, and other stakeholders on the draft guidance.

“We also want to hear from consumers on how businesses can provide useful and relevant information about any green claims so they can be confident in the accuracy of these claims.”

Consultation for the draft guidance will close on September 15. 

This article was first published on sibling website InsideFMCG.

Author: Sean Cao.