Competition watchdog the ACCC has launched Federal Court proceedings against the makers of Banana Boat and Hawaiian Tropic sunscreens, alleging false claims about the products being "reef friendly".
Edgewell Personal Care Australia and its US parent company allegedly misled consumers between August 2020 and December 2024 by claiming their sunscreens did not harm coral reefs.
The ACCC claims more than 90 Edgewell sunscreen products contained ingredients that either cause harm to reefs or risk causing harm, despite marketing claims to the contrary. The products contained octocrylene, homosalate, 4-methylbenzylidene camphor and butyl methoxydibenzoylmethane.
"We allege that Edgewell engaged in greenwashing by making claims about the environmental benefits of Hawaiian Tropic and Banana Boat sunscreens that it had no reasonable or scientific basis to make," said Catriona Lowe, ACCC deputy chair.
Edgewell marketed its sunscreens as "reef friendly" because they did not contain oxybenzone or octinoxate, chemicals banned in Hawaii due to reef damage.
However, the ACCC alleges the company was aware of scientific studies showing other ingredients in its products could harm marine life.
The US parent company removed "reef friendly" claims from sunscreen products in America around 2020 but continued making the claims in Australia until December 2024, according to the ACCC.
The regulator alleges the claims appeared on websites, social media, retailer catalogues and product packaging across Australia over four years. Several Hawaiian Tropic products included a logo with "reef friendly" text and coral imagery.
"Many consumers consider environmental factors when purchasing products," Lowe said.
"By engaging in this alleged greenwashing, we say Edgewell deprived consumers of the ability to make an informed decision."
The ACCC is seeking penalties, declarations, injunctions and costs against both Edgewell companies.
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