ACCC launches internet sweep to identify greenwashing

The ACCC has launched an internet sweep into identifying misleading environmental and sustainability marketing claims plus fake or misleading online business reviews.

These sweeps will take place over the next couple of weeks as a part of the ACCC compliance and enforcement policy for 2022 and 2023.

The aim of the sweeps is to identify deceptive advertising and marketing practices by businesses or industries.

At least 200 company websites will be reviewed for misleading environmental claims across a range of targeted sectors including energy, vehicles, household products and appliances, food and drink packaging, cosmetics, clothing and footwear.

Delia Rickard, deputy chair at the ACCC said as consumers become increasingly interested in purchasing sustainable products, there are growing concerns that some businesses are falsely promoting their environmental or green credentials.

She said, “Misleading claims about products or services undermine consumer trust and confidence in the market. This sweep forms a core part of our work in actively monitoring for ‘greenwashing’ in the market and will help inform what steps businesses can take to improve the integrity of their environmental claims.”

“In looking at claims we are concerned about what the ordinary consumer will understand the claim to mean. The ACCC won’t hesitate to take enforcement action where we see that consumers are being misled or deceived by green claims.”

The ACCC said it will conduct a separate internet sweep targeting fake or misleading online reviews and testimonials.

This will be the first of a series of smaller-scale sweeps focusing on deceptive practices in the digital marketplace.

The sweep will target misleading reviews posted to business’ websites, Facebook pages and third-party review platforms. Misleading advertising by influencers on social media will be considered in a second sweep, which will focus on identifying posts that fail to clearly disclose advertising or sponsorship.

Rickard said, “Unfortunately, consumers are facing an ever-increasing range of manipulative marketing techniques designed to exploit or pressure them, due in part to the huge number of online information sources available. Consumers often rely on reviews and testimonials when making purchases, but misleading reviews can be harmful.

“Businesses can also be significantly impacted, particularly by negative reviews at the hands of competitors or third-party professional reviewers acting on behalf of a business. Review manipulation of any kind can impact a business’ star or numeric rating, leading to an overall misleading impression of the business.”

At least 100 businesses will be reviewed in this initial sweep, targeting areas in which consumers most commonly rely on reviews including household appliances, electronics, fashion, beauty products, food and restaurants, travel services, sport, home improvement, kitchenware, health products, as well as furniture and bedding.

The ACCC will publish the findings of the sweeps once they are collated and analysed.

In late September, Delia Rickard addressed the Sydney Morning Herald Sustainability Summit saying the consumer watchdog was cracking down on brands that actively contribute to greenwashing.