The ACCC has published a guide for businesses on making claims about the environmental impact of their business, products or services to assist them in complying with the Australian Consumer Law (ACL).

Businesses have obligations under the Australian Consumer Law (ACL) (being Schedule 2 of the
Competition and Consumer Act 2010 (Cth)) not to make false or misleading representations or engage
in misleading or deceptive conduct. The obligations are mirrored by the ASIC Act provisions on financial services. These obligations apply to making environmental claims.

The ACCC Guidelines set out eight principles for trustworthy environmental claims:

Principle 1: Make accurate and truthful claims

Principle 2: Have evidence to back up your claims

Principle 3: Do not hide or omit 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

In determining any enforcement action to take the ACCC says it will consider what is a proportionate response to the conduct and the resulting or potential harm.

The ACCC will consider whether genuine efforts and appropriate steps were taken by the business to verify the accuracy of any information that they relied on.

The ACCC is more likely to take enforcement action in respect of representations about future matters regarding environmental claims where a business did not have reasonable grounds for making the representation, does not have an intention or plan to implement initiatives, or knew or was reckless about whether the claim was untrue or incorrect.

ACCC’s guide complements ASIC’s guidance on how to avoid greenwashing (INFO 271) in relation to financial services regulated by the ASIC Act.

The ACCC and ASIC work closely together on the detection and investigation of misleading environment claims, including corporate sustainability claims and claims in connection with financial products and services.

The ACCC will focus on consumer facing products and services, whereas ASIC is primarily responsible for financial products and financial services.

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