Consumer group puts spotlight on dodgy labelling claims
Posted
Updated
Consumers group Choice says there has been an explosion of green claims on supermarket product labels (file photo) (Getty Images: Ian Waldie)
You can't walk far down the aisle of any supermarket in Australia without seeing a myriad of claims about the environmentally friendly properties of the products on display.
Their labels say some products are produced in a sustainable way, some are natural, others are recycled, and still more are biodegradable.
Marketing consultants are now being accused of exploiting shoppers' growing environmental concerns by "green washing" the labels of many everyday items.
Consumers group Choice says there has been an explosion of green claims on product labels that are either not supported by evidence, are poorly explained or are irrelevant.
Choice is also worried shoppers are being left confused by meaningless green logos and waffle.
Choice chief executive Peter Kell says it is difficult to tell whether the environmentally friendly claim is simply "greenwash".
"On the one hand, you might think that companies are becoming more environmentally friendly but on the other hand, we're just seeing a proliferation of poor quality environmental claims," he said.
"It's very difficult to distinguish between a claim that has some substance and a claim that is simply greenwash when there isn't sufficient evidence to back up either claim."
Choice conducted a stocktake of non-food supermarket items like garbage bags, detergents and cleaners, tissues and toilet paper.
It found 630 so-called green claims on just 185 products.
Mr Kell says one cleaner lists 19 claims on its label.
"A product that has a label on it saying 30 per cent recycled sounds good, you might be interested in buying recycled products," he said.
"You then find out later on in small print at the back of the product that that only relates to the carton or the container, rather than the product's ingredients."
Mr Kell says that many of these green claims are vague.
"Unfortunately a lot of these products sail very close to the wind in terms of legality," he said.
"We would like some of these claims to be tested by the Australian Competition and Consumer Commission [ACCC], but some of them are so vague as to be unhelpful, but possibly to fall on the right side of legal, they're actually just as useless for consumers though at the end of the day."
Chasing dodgy claims
The ACCC released an issues paper about dodgy environmental claims in February, including marketing guidelines on what it considers a breach of the law in this area.
The final version of those guidelines will be issued in the next few weeks.
Already, it is taking action against the car company Holden, accusing it of exaggerating the green credentials of the Saab branded cars it distributes.
ACCC chairman Graeme Samuel says such claims are often in breach of the law.
"Green claims are like exactly any other claim that's made if they are excessive, if they over reach in terms of overselling and under delivering, then they run the risk of breaching the misleading and deceptive conduct provisions of the Trade Practices Act," he said.
As well as aggressive action by the ACCC, Choice wants several key reforms to stop the green washing of products.
It wants the voluntary Australian standard on green labelling to be made mandatory and industry associations should require their members to stick to the standard.
But Mr Samuel says there is enough protection in existing laws.
"We have one mandatory standard that's been in place for the past 35 years and it's a standard that says 'thou shalt not mislead and deceive consumers in trade and commerce," he said.
Companies found on the wrong side of the law could be forced in court to rectify any misleading claims.
Anyone found deliberately misleading customers could face criminal prosecution and a fine of more than $1 million.
ABC Radio's AM program sought a response from many related industry associations. ACCORD, the body representing many of the products mentioned, says its members put the greatest emphasis on compliance with Australian laws and that it was disappointed that Choice did not raise the issue directly with it.
Adapted from a story first aired on ABC Radio's AM program on May 5, 2008.
Comments
Comments for this story are no longer available. ABC policy is to delete comments on stories three months after they are published.
Search ABC News
Featured Video
-
Video
Julia Gillard has moved one vote closer to hanging on to her job.
-
Video
Samantha Stosur has cruised through to the third round of the US Open with a crushing straight sets win over fellow Australian Anastasia Rodionova.
-
Video
Former British Prime Minister Tony Blair has opened up about his life in Downing Street in his controversial new memoir.
-
Video
Julia Gillard says a Labor government would make $100 million immediately available to redevelop the Royal Hobart Hospital.
The ABC News Online Investigative Unit encourages whistleblowers, and others with access to information they believe should be revealed for the public good, to contact us.
