The food and beverage sector is in the top three for industries making questionable environmental claims, the Australian Consumer and Competition Commission has found.
In its internet sweep of 247 businesses, the ACCC found more than half made concerning claims about their environmental credentials.
ACCC deputy chair Catriona Lowe said the findings of this initial action showed that businesses making vague or unclear environmental claims warranted further scrutiny.
Lowe said the commission already had active investigations into packaging, consumer goods, food manufacturing, and medical devices sectors.
“We will take enforcement action where it is appropriate to do so as it is critical that consumer trust in green claims is not undermined.
“Businesses using broad claims like ‘environmentally friendly’, ‘green’, or ‘sustainable’ are obliged to back up these claims through reliable scientific reports, transparent supply chain information, reputable third-party certification or other forms of evidence.
“Where we have concerns, we will be asking businesses to substantiate their claims,” she said.
Of the 247 businesses across eight sectors, 37 (15 per cent) were from the food and beverage sector and 24 companies raised concerns regarding claims being made.
Key issues identified by the ACCC included vague and unqualified claims like ‘kind to the planet’ or ‘eco-friendly’. A lack of substantiating information and the use of absolute claims - ‘100% recyclable’ - were also highlighted.
For the ACCC, the upshot of these findings is that they have shown what needs to be done in terms of education and developing guidance materials targeted to specific sectors.
Where companies used accurate environmental claims, they were most useful when they were “relevant, clear, reliable, and transparent”.
Lowe encouraged companies to come forward if they realised they were making false or misleading claims.
“Businesses who cooperate and advise of any issues with their operations, will be considered more favourably than those who wait for the ACCC to unearth these problems,” she said.
