- Does your business use words or images to convey green or environmental claims?
- Can you back up your environmental claims with evidence?
- Did you know you are breaking the law if you make misleading or false claims?
Many businesses make environmental, sustainability or organic claims about their products, services and operations.
Products labelled with these claims can attract a premium price compared to those without environmental, sustainable or organic features. Many customers consider these claims to be a major factor when choosing what to buy.
Businesses have responsibilities under the Australian Consumer Law to not make false or misleading claims.
Checklist for making environmental or organic claims
- Make accurate and truthful claims.
- Have evidence to back up your claims.
- Don’t hide important information.
- Explain any conditions on claims.
- Avoid broad and unqualified claims.
- Use clear and easy to understand language.
- Visual elements shouldn't give the wrong impression.
- Be direct and open about sustainability transition.
About environmental claims
An environmental claim can be made by a business about its products, services or operations such as:
- having a neutral or positive impact on the environment
- being less harmful for the environment than alternatives
- having specific environmental benefits.
Environmental claims are made about environmental attributes or benefits. These could include:
- resource use and waste management
- the types of materials used and how they are sourced
- product durability and repairability
- end-of-life and disposal options
- energy use and emissions
- water usage
- pollution and use of harmful substances
- deforestation, land or aquatic degradation and associated biodiversity impacts.
A business needs to consider the environmental claims it uses. It also needs to consider the information that’s left out and the visual elements, colours and logos used. Learn more about environmental and sustainability claims.
‘Greenwashing’ is a term used to describe false or misleading environmental claims. Greenwashing makes business appear more environmentally beneficial than they really are.
Example of an environmental claim
A cosmetics manufacturer makes a claim on its packaging that ’this product does not harm the environment’. The bottle is made from recycled material, but the cap and external packaging are not, nor are the contents in the bottle.
’No harm’ exaggerates the benefits and is likely to give a false or misleading impression about the impact of the business’ product. The business could instead claim ’Reduced harm to the environment’ and disclose which parts of the product are made from recycled material to avoid misleading customers.
About organic claims
An organic claim describes a product as organic, or the ingredients used to make a product as organic. For example, ‘100% organic’, ‘made using organic ingredients’ or ‘certified organic’.
In Australia, organic products don't need to meet a particular standard or be certified to be labelled as organic, however there are options available. Businesses that do make an organic claim, such as through a claim of certification, must be able to prove the claim.
Organic standards and certification
There is a voluntary domestic standard for growers and manufacturers wishing to label products as ‘organic’ and ‘biodynamic’ for sale within Australia (AS 6000–2015).
Businesses may also choose to become certified by an organic certification body. Many products carry a symbol, logo or other trademark to show they are certified organic in this way. There are various private certification bodies. The minimum standards required to get certification may vary between these bodies.
Learn more about organic claims.
Example of genuine organic claim
A food manufacturer sells a granola bar and labels it ’organic’. All ingredients are individually certified organic, and the manufacturer holds a current certificate from an accredited body covering the finished product.
Making an organic claim is unlikely to raise concerns where it accurately reflects the composition of the product as a whole. The claim is verifiable and is supported by suitable certification.
All claims must be clear, truthful and accurate under the law
Whether you choose to make an environmental or organic claim, you must make sure the claim is clear, truthful and accurate. Businesses risk breaking the law if they make false or misleading claims.
If a reasonable consumer is likely to be led into error from certain words or images on a product’s labelling, then there’s a risk of breaching the law. It doesn’t matter whether your business intended to mislead or deceive consumers.
Learn more about false or misleading claims.