The ACCC is concerned some businesses are taking advantage of consumer demand.
Competition watchdog the ACCC says some businesses continue to make misleading environmental claims to exploit consumer demand for green products, despite several high profile greenwashing cases.
An ACCC spokesperson said the commission considers a business to be engaging in greenwashing “where they use claims that make a product or service seem better or less harmful for the environment than it really is".
“However, the ACCC is aware there is growing consumer demand for products and services with environmental benefits, and environmental claims appear on a vast range of products and services," the spokesperson said.
The commission is concerned some are taking advantage of this growing demand.
“Some businesses are falsely promoting environmental or green credentials to capitalise on this changing consumer preference,” the spokesperson said.
“The ACCC is also conscious that to encourage innovation and competition, businesses investing properly in sustainability practices should be protected from any free-riding behaviour of other businesses.”
In May of this year, Energy Australia settled a case brought by Parents for Climate over its “Go Neutral” advertising, which suggested electricity and gas use could be made carbon neutral through offsets.
The company later acknowledged that offsets do not negate emissions and said the program may have caused confusion.
In April 2025, Clorox Australia was ordered to pay $8.25 million in penalties after the Federal Court found it misled consumers over claims that GLAD garbage bags were made with “ocean plastic”.
The plastic was collected from communities in Indonesia located far from the ocean.
Meanwhile, in October, 2024, the Environmental Defenders Office, on behalf of Climate Integrity, lodged a complaint to the ACCC alleging Qantas’ ‘Fly Carbon Neutral’ program misled consumers about offsetting flight emissions.
The commission has not yet confirmed whether an investigation into the allegations is underway.
Despite several high profile cases being completed in recent months, the ACCC was unable to confirm if instances of greenwashing were on the rise.
“The ACCC is unable to conclude whether there has been an increase in accusations of greenwashing in advertising or what types of conduct is getting worse or improving,” the spokesperson said.
The spokesperson said the ACCC does not comment on ongoing investigations, in line with its media code.
The ACCC has also released a guide for businesses making environmental claims, outlining eight key principles including accuracy, clarity, and the need for evidence.
“When developing marketing materials, businesses should step into the shoes of a consumer and assess whether statements or images might be interpreted as promising benefits that cannot be delivered or whether claims might lead consumers to form mistaken beliefs about the benefits of a product or service,” the spokesperson said.
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