CE and appliance manufacturers are facing a new problem, with the ACCC claiming they are investigating several businesses for potential ‘greenwashing’, following an internet sweep which found more than half of the businesses reviewed made concerning claims about their environmental or sustainability practices.
Greenwashing is the process of using misleading or false information about a company’s operations and/or products to deceive customers and members of the public about their environmental impact. To fully define greenwashing, you have to consider both positive and negative impacts on the planet.
ChannelNews understands that some of these businesses are online CE Companies and appliance manufacturers. The cosmetic, clothing and footwear and food and drink sectors were found to have the highest proportion of concerning claims among the industries targeted in the operation. Other sectors examined also had a significant proportion of concerning claims.
The big question is how will the Australian Competition and Consumer Commission be able to check whether overseas appliance and CE product manufacturers are actually delivering what they claim.
Late last year, after ChannelNews attended a Miele briefing at IFA in Berlin that was awash with claims as to how the German Company was continuously work towards making sustainability essential at every stage of our products and services’ life cycle – as well as in all of our value chains, and in the homes of our customers, Miele threatened ChannelNews because we highlighted images of Miele executives making their claims about how good they were at “Green washing”.
We all remember the claims of Volkswagen.
Last year, the High Court of Australia dismissed Volkswagen’s final attempt by Volkswagen to reduce the $125 million fine levied against the German carmaker for making false representations about compliance with Australia’s diesel emissions standards.
The $125 million penalty was the highest ever imposed for breaches of the Australian Consumer Law and marks the final Australian chapter in the German carmaker’s global emission scandal, which broke in 2015.
The image of Miele executives making their sustainability claims at IFA, was used in the first story we wrote about the ACCC, putting in place a mechanism to police sustainability claims. The Company claimed we were linking them with greenwashing problems.
While we have no evidence of Miele doing anything wrong and that they are a credible appliance manufacturer.
What we are concerned as to how the ACCC will police Chinese, Asian and European Companies making components and finished products for brands such as Miele, or will the ACCC take the word of brands such as Miele, LG, Fisher & Paykel or Electrolux who use plants all over the world as gospel when it comes to greenwashing and their sustainability claims.
According to the ACCC, of the 247 businesses reviewed during the sweep, 57 per cent were identified as having made concerning claims about their environmental credentials. The cosmetic, clothing and footwear and food and drink sectors were found to have the highest proportion of concerning claims among the industries targeted in the operation. Other sectors examined also had a significant proportion of concerning claims.
“Our sweep indicates a significant proportion of businesses are making vague or unclear environmental claims. This warrants further scrutiny,” ACCC Deputy Chair Catriona Lowe says.
“Consumers are now, more than ever, making purchasing decisions on environmental grounds. Unfortunately, it appears that rather than making legitimate changes to their practices and procedures, some businesses are relying on false or misleading claims. This conduct harms not only consumers, but also those businesses taking genuine steps to implement more sustainable practices.”
“Businesses using broad claims like ‘environmentally friendly’, ‘green’, or ‘sustainable’ are obliged to back up these claims through reliable scientific reports, transparent supply chain information, reputable third-party certification or other forms of evidence.”
“Where we have concerns, we will be asking businesses to substantiate their claims,” Ms Lowe says.
“Already, we have several active investigations underway across the packaging, consumer goods, food manufacturing and medical devices sectors for alleged misleading environmental claims and these may grow, as we continue to conduct more targeted assessments into businesses and claims identified through the sweep. We will take enforcement action where it is appropriate to do so, as it is critical that consumer trust in green claims is not undermined.”
The ACCC will also conduct a range of education activities with businesses, including updating economy-wide guidance material, in addition to targeted guidance for specific sectors.
“The sweep has helped inform our forthcoming guidance about what steps businesses need to take to improve the integrity of their environmental claims,” Ms Lowe says.
“We want to see businesses taking steps to ensure that environmental claims are accurate as well as meaningful for consumers. Our sweep has shown that claims are most useful where they are relevant, clear, reliable and transparent.
“We will engage directly with businesses and industry associations to improve compliance with the Australian Consumer Law.
“Importantly, we encourage businesses to come forward if they become aware they have made false or misleading marketing claims. Businesses who co-operate and advise of any issues with their operations, will be considered more favourably than those who wait for the ACCC to unearth these problems,” Lowe adds.
