The Australian Competition and Consumer Commission (ACCC) has published draft guidance for businesses on environmental and sustainability claims which explains the obligations under the Australian Consumer Law which businesses must comply with when making environmental and sustainability claims to protect consumers from ‘greenwashing’.

The draft guidance sets out what the ACCC considers to be good practice when making such claims, to help businesses provide clear, accurate and trustworthy information to consumers about the environmental performance of their business.

The draft guidance identifies eight practical principles which the ACCC encourages businesses to apply when making environmental claims. It says that by following these principles, businesses are less likely to mislead consumers and contravene the Australian Consumer Law.

Principle 1: Make accurate and truthful claims
Principle 2: Have evidence to back up your claims
Principle 3: Don’t leave out or hide important information
Principle 4: Explain any conditions or qualifications on your claims
Principle 5: Avoid broad and unqualified claims
Principle 6: Use clear and easy-to-understand language
Principle 7: Visual elements should not give the wrong impression
Principle 8: Be direct and open about your sustainability transition.

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