25 July 2025
Highlighting your product’s environmental benefits can be a powerful way to connect with today’s sustainability-conscious customers. But if you’re making “green” or eco-friendly claims in your marketing, you need to be careful — getting it wrong could cost you more than just customer trust.
The Australian Competition and Consumer Commission (ACCC) is cracking down on businesses making misleading environmental claims — often called greenwashing. That means you need to be crystal clear, truthful, and backed by evidence when promoting your environmental credentials.
What Are Green Claims?
Green claims include any statement, label, or marketing message that suggests your product, service, or business is better for the environment. Common examples include:
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“Eco-friendly”
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“Sustainable”
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“Carbon neutral”
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“Made from recycled materials”
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“100% biodegradable”
These claims are powerful — but if they’re vague, misleading, or can’t be backed up, they may breach Australian Consumer Law and trigger legal consequences.
Why Is This a Legal Issue?
The ACCC enforces rules against misleading or deceptive conduct. If your business makes green claims that are inaccurate or can’t be substantiated, you could face penalties — including fines up to AU$10 million, or even have your trade marks cancelled.
In recent years, the ACCC has investigated hundreds of businesses and taken legal action in several high-profile cases:
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A yoghurt company claimed its packaging was made from “100% ocean plastic” — it wasn’t. They had to redesign the packaging and issue public corrections.
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A motorsports company claimed it offset all emissions by planting trees — but failed to explain it would take decades for those trees to absorb the carbon.
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A power-saving device seller claimed their product reduced energy usage — but couldn’t prove it. They were forced to stop selling the device and issue apologies.
How to Stay on the Right Side of the Law
If you want to make green claims, here’s what you need to keep in mind — straight from the ACCC’s guidance:
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Be truthful and accurate
Only make claims that are factually correct and reflect real environmental benefits. -
Back it up with evidence
Use credible, scientific, or independent proof. Make it available to your customers. -
Don’t leave out key details
Be transparent. Don’t bury important info in fine print or leave out facts that could change the meaning of your claim. -
Be specific
Avoid vague terms like “green” or “eco” unless you can explain exactly what that means. -
Use plain language
Say it simply. Avoid technical jargon that your audience might misunderstand. -
Watch your visuals
Logos, colours, and packaging design can create a misleading impression, even if the words are technically true. -
Be upfront about your sustainability journey
If you’re working towards future goals, be honest about where you are now — and only make promises you have a plan to meet.
How IP Solved Can Help
Planning to promote your product’s environmental benefits? IP Solved can help you do it right. We advise on clear, compliant and defensible green claims, so your branding reflects your values without crossing legal lines.
Our team can help you avoid greenwashing risks, protect your trade marks, and confidently promote your sustainability story.
Get in touch with IP Solved to ensure your environmental claims are credible, strategic, and fully compliant.
