The Australian Competition and Consumer Commission (ACCC) will be cracking down on so-called ‘green’ products and services, following a new marketing trend which has seen a major burst of apparently environmentally-friendly products in response to a growing demand from consumers and businesses for companies to lessen their footprint on our ailing planet.According to the ACCC commissioner, John Martin, the commission has received a “steadily increasing” number of complaints about and enquiries into green marketing, with many questioning the legitimacy of the marketers’ claims.

However, Martin reminds companies that the usual trade rules still apply.

“This trend is consistent with the growing trend for business to green market their goods and services. Whether a business is promoting their ‘green’ motor vehicles, ‘green’ flights, or ‘green’ toilet paper the Trade Practices Act 1974 consumer protection provisions apply,” he said.

“In light of the growing number of complaints, the ACCC is taking a closer look at a number of the green claims that are being made at the moment, and all businesses need to ensure they are not misleading their customers with such claims.”

Martin says some companies aren’t misleading customers maliciously, but rather they simply don’t understand the rules.

“Many companies incorrectly believe green marketing refers solely to the promotion or advertising of products with environmental characteristics. Terms like phosphate free, recyclable, eco-friendly, ozone friendly and environmentally friendly are terms consumers have in the past associated with green marketing,” he said.

“Green marketing claims, in the broader concept are now being applied to consumer goods, industrial goods, services, corporate activities, government activities, and so on. If there is a green-edge to be found, it will be exploited. Consumers across the spectrum are becoming more concerned and aware about the natural environment and hence businesses marketing goods with environmental characteristics will have a competitive advantage over businesses that do not.”

Other marketers exploit the green edge to their products because they see the benefits of taking part in this trend.

“Businesses have long since recognised there is a competitive advantage to be had by appealing to the new green awareness of customers, and the latest and trendiest green marketing claims are the ‘carbon neutral’, ‘carbon offset’ and ‘carbon footprint’ claims,” said Martin.

“To meet the demand of this current wave of green marketing claims a largely unregulated carbon-cutting business has sprung up selling ‘offsets’ which pay for projects elsewhere that neutralise an equal amount of emissions – planting trees or fertilising oceans. This trade is currently estimated around $US100 million and growing. Consumers can carbon neutralise their car, their flight and most recently their household but are these claims too good to be true and do they truly deliver what consumers expect them to?

“The ACCC intends to ramp-up its green compliance activities with a combination of business and consumer educative initiatives and targeted enforcement action.”