The ACCC has launched two internet sweeps to identify misleading environmental and sustainability marketing claims and fake or misleading online business reviews.
The sweeps are being conducted over the coming weeks as part of the ACCC’s compliance and enforcement priorities for 2022-23, with the broad aim of identifying deceptive advertising and marketing practices by businesses or industries.
This follows the ACCC’s warnings earlier this month that businesses ‘greenwashing’ their credentials were in its sights. This saw ACCC deputy chair Delia Rickard say that businesses needed to be ready to substantiate any environmental and sustainability claims they were making when marketing the products or services.
At least 200 company websites will be reviewed in the sweep 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.
“As consumers become increasingly interested in purchasing sustainable products, there are growing concerns that some businesses are falsely promoting their environmental or green credentials. 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,” Rickard said.
At the same time, the ACCC 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.
At least 100 businesses will be reviewed in the initial sweep, targeting areas in which consumers most commonly rely on reviews.
“We are looking to identify businesses, review platforms or sectors where there is a pattern of misleading online reviews and testimonials that have the potential to cause significant consumer or small business harm.
“Well-functioning online markets are key to the modern economy. To realise the full benefit, consumers need confidence to engage with online businesses,” Rickard said.
The ACCC will publish the findings of the sweeps once they are collated and analysed.
