Does your business make "green" and environmental claims? Are these credentials important to your business? With the ACCC focusing its attention at present on misleading and deceptive “green” claims, it is important for businesses to get it right.
In February 2008, the Australian Competition and Consumer Commission (the “ACCC”) published a guide to educate businesses about their obligations regarding environmental claims under the Trade Practices Act 1974 (the "TPA").
“Green Marketing and the Trade Practices Act” provides a clear and concise guide to assist manufacturers, suppliers, advertisers and others to assess the strength of any environmental claims they make and to improve the accuracy and usefulness to consumers of their labelling, packaging and advertising.
As environmental and “green” issues become increasingly trendy, these sorts of claims can be used as a powerful marketing tool. Consumers will often rely on these claims and businesses must ensure that all claims are both sound and substantiated.
The guide is split up into four parts.
Part One explains the scope of the TPA and the obligations that it imposes on all forms of marketing.
Part Two looks specifically at the various types of environmental claims that a business might make and the careful, cautious approach that should be taken. It notes that the overall impression given to the consumer is important. It draws attention to certain common, broad and often uncertain claims that are made, highlighting the problems that can occur when using terms such as: green; environmentally friendly/safe; energy efficient; recyclable; carbon neutral; and renewable or green energy.
The third part examines two key, environmental efficiency schemes that are administered by the government. It briefly details the Equipment Energy Efficiency Program and the Water Efficiency Labelling and Standards Scheme and highlights that business must not only comply with the rules and regulations of these schemes, but also the TPA's misleading and deceptive conduct provisions.
The final part provides a short checklist for marketers to refer to when making environmental claims.
Whilst this guide is by no means a substitute for proper legal advice, it is a useful starting point for raising awareness as to the trade practices issues that arise in this area.
An electronic version of the guide is available for free at www.accc.gov.au/greenmarketing.
Please find a print friendly version of this Alert below
For further information on this issue, please contact:
Michael Sutton, Senior Associate
IP & Technology Group
E: michael.sutton@dibbsbarker.com
