Making Green Claims in Your Marketing Without Misleading Customers
Customers notice green claims. Words like “sustainable” and “environmentally friendly” now appear on packaging, websites and social posts. They can help a sale, but they also draw the attention of the consumer watchdog.
The Australian Competition and Consumer Commission (ACCC) has made misleading environmental claims a focus. It has published a guide that sets out what it expects from businesses. Here is what that guide says and how to apply it to your own marketing.
What counts as greenwashing
Greenwashing is when a business makes its products or practices look better for the environment than they really are. The rules sit under the Australian Consumer Law, which bans misleading or deceptive conduct. That covers claims in ads, on labels, on websites and in social media posts. It also covers logos, colours and images that suggest an environmental benefit.
The ACCC released Making environmental claims: a guide for business on 12 December 2023. It sets out eight principles for clear and accurate claims. ACCC Acting Chair Catriona Lowe said misleading environmental and sustainability claims “continue to be an enforcement and compliance priority for the ACCC”. The guide is a good place to start before you write any green marketing copy.
What the ACCC found when it looked
Before the guide came out, the ACCC ran an internet sweep of environmental claims. It reviewed 247 businesses and brands across eight sectors in October 2022. Of those, 57% made claims that raised concerns. The full findings are in the ACCC report on greenwashing by businesses in Australia.
The sectors with the highest share of concerning claims were cosmetics and personal care, then textiles, clothing and shoes, then food and beverages. Other sectors reviewed included takeaway packaging, cleaning products, electronics, vehicles and energy. So the problem reaches well past one industry.
The most common problems
Vague claims topped the list. Words such as “green” and “sustainable” were often used with no explanation of what they meant. Many businesses also offered no evidence for their claims. Where evidence was given, it was sometimes out of date or sat behind a broken link.
Images caused trouble too. Some logos used leaves, the planet or green colours and looked like certification marks without being linked to any scheme. Other businesses suggested a whole product was certified when only part of it was. The sweep also flagged absolute claims like “100% recyclable” and net zero goals with no clear plan behind them.
The eight principles in plain terms
The ACCC’s eight principles are short, and each one is worth reading against your own copy. They are listed below, close to the ACCC’s own wording. Most of them come down to telling customers the truth in a way they can follow.
- Make accurate and truthful claims.
- Have evidence to back up your claims.
- Don’t hide or omit important information.
- Explain any conditions or qualifications on your claims.
- Avoid broad and unqualified claims.
- Use clear and easy to understand language.
- Visual elements should not give the wrong impression.
- Be direct and open about your sustainability transition.
The first two go together. A claim must be accurate, and you should hold evidence for it before you publish. If you cannot point to a source, test result or certificate, rewrite the claim or drop it.
Principles three and four are about the full picture. The sweep found businesses leaving out negative information about their products. If a claim only applies to part of a product, or only under certain conditions, say so near the claim. A footnote at the bottom of a long page is easy to miss.
Writing claims customers can trust
Broad words are the easiest trap. “Eco” or “sustainable” on its own tells a customer very little. Say exactly what the benefit is and which part of the product it relates to. A statement like “the outer box is made from recycled cardboard” gives a reader something concrete to check.
Plain language helps everyone. Avoid technical terms your customers will not know, or explain them briefly if you need them. The same care applies in paid ads, where space is tight and every word counts. Our notes on Google AdWords best practice cover more on writing ads that stay clear.
Images, colours and logos
The seventh principle says visual elements should not give the wrong impression. Green leaves, globes and earthy colours all send a message. If you design a badge or seal yourself, make sure it cannot be mistaken for an independent certification. If you do hold a real certification, explain what it covers.
Talking about future goals
Many businesses want to share plans to cut emissions or packaging. The eighth principle asks you to be direct and open about that transition. The sweep found goals such as net zero being promoted without clear plans. Keep goals separate from results, and report progress honestly as you go.
Building this into everyday marketing
Green claims tend to spread across a business over time. A line on the website gets copied to a brochure, a product listing and a social post. Each copy needs the same care, so keep one approved wording and the evidence behind it in a shared file. This fits well with the wider principles of ethical marketing, where honesty sits at the centre.
Online sellers face extra exposure because product pages are easy to compare. A customer can check your claim against a competitor’s in seconds. That openness is part of the wider debate about online retail and what it means for traditional stores.
The same habit of careful wording matters in every kind of business content, including professional blogs. We have covered some related traps in blogging mistakes lawyers must avoid. Careful wording in one place makes it easier everywhere else.
Penalties and enforcement
The ACCC page for the guide notes that maximum penalties increased from 28 March 2026. For certain provisions, the fixed amount part of the maximum penalty for corporations is now $100 million. The guide itself was written before that change. Those figures are maximums, but they show how seriously the issue is treated.
Frequently asked questions
Do the rules apply to small businesses?
Yes. The ACCC guide is aimed at any business that makes environmental or sustainability claims. A local café or tradie is expected to back up a claim with evidence, just like a large brand.
Is the word “sustainable” banned?
No. The concern is using broad words without explanation. If you use the word, say what you mean and which part of the product or business it relates to. Have the evidence ready in case someone asks.
What if my product has a real certification?
That helps, but explain it. Tell customers what the certification covers and whether it applies to the whole range or only some products. The sweep found businesses implying full certification when only part was covered.
Do the principles apply to social media posts?
Yes. The guide covers environmental marketing and advertising claims, and social posts are part of your marketing. Treat a caption with the same care you would give a label. The principles apply to the images as well as the words.
This article is general information about Australian law and is not legal advice. Laws, penalties and processes change, and other rules can apply depending on your industry and your state or territory. Speak with a qualified lawyer about your own situation.
