The sweeps are set to start in November 2022 as part of the Australian watchdog’s compliance and enforcement priorities to discourage deceptive advertising and marketing practices that claim environmental-friendly and sustainable practices and policies.
A survey conducted by Foundations For Tomorrow, an environmental organisation from the country, claims that youngsters under the age of 30 are keen on fighting climate change and are actively interested in purchasing sustainable products. However, to gain more clout and potentially attract more consumers, certain businesses and platforms are falsely promoting environmental or green credentials.
According to the ACCC, misleading claims about services and products not only undermine customers’ trust in the market but can also set a dangerous trend, with companies falsely basing their marketing campaigns on environmental issues, without providing any measurable or accountable matrix to sustain their claims.
The ACCC will take enforcement actions in cases in which customers are being misled or deceived by green claims, as part of the organisation’s focus on actively monitoring greenwashing and helping businesses comply with Australia’s rules and regulations regarding climate change and environmental issues.
Apart from investigating companies’ online marketing claims, the consumer watchdog also plans to conduct a separate sweep to target misleading reviews posted on third-party platforms, social media channels, and websites.
Moreover, influencers advertising for products and services that are greenwashing will also be held accountable, with the ACCC focusing on identifying online posts that don’t disclose sponsorship and falsely promote green products.
The first 100 companies that will be assessed by the ACCC are part of sectors in which consumers heavily rely on reviews, including fashion, beauty, food and restaurants, electronics, health, household, and travel services. Online reviews represent the perfect opportunity for false and misleading brand awareness campaigns, where individuals and online influencers fail to disclose sponsorships or barter deals from companies actively trying to sell their products and services as green and environmental-friendly.
Finally, the ACCC plans to publish the findings once all data is gathered and analysed.
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