ACCC Comes Down Hard On "Greenwashers"

Key Point

• Businesses need to be careful when making a carbon claim.

As more consumers purchase carbon neutral products and more businesses seek to promote their green credentials, the burgeoning carbon offset market has come under fire for "vague, misleading and unsubstantiated" carbon claims by its less ethical traders.

The Australian Competition and Consumer Commission has released a guide on "Carbon Claims and the Trade Practices Act" to seek to address this problem and promote a more credible and transparent carbon offset market.

Conduct in breach of the Trade Practices Act

Section 52 of the Trade Practices Act 1974 prohibits conduct, in trade or commerce, which is misleading and deceptive or is likely to mislead or deceive. A breach of section 52 centres on whether the representations were: