Date published: 14 October 2025 | Author: Nina Rossi

As some may know, greenwashing is now a real regulatory risk for businesses making environmental claims. A recent decision in ACCC v Clorox found public statements that a product contained "50% ocean plastic" were misleading because the recycled plastic was sourced within 50 kilometres of a shoreline, not collected from the ocean. A disclaimer did not fix the problem, and the company faced penalties.

Why This Matters

Making broad or ambiguous environmental claims can trigger consumer law action and fines. 

Regulators expect claims to be accurate, clear, and backed by reliable evidence. Vague wording, unclear sourcing, or reliance on small print will not protect you.

What to think about or check

• Claims Audit: Review all marketing, packaging, website content, and social posts for environmental statements.
• Evidence: Keep verifiable records showing where materials were sourced and how percentages were calculated.
• Wording: Avoid language that could be misunderstood. If a claim depends on specific sourcing or processes, state that clearly near the main claim.
• Disclaimers: Do not rely on footnotes or disclaimers to correct a misleading headline.
• Processes: Train marketing and product teams to clear environmental claims before publication and keep a compliance log.

The ACCC has reiterated greenwashing as a top compliance priority for 2025 to 2026. Guidance and reporting frameworks are also in the process of being tightened, increasing the expectation that businesses will substantiate sustainability claims before publishing them.

You’re in control when you understand your legal position. Contact Rossi Law today to get the clarity and advice you need to move forward.

This blog is based on a video recorded by Rossi Law. It was first drafted with AI assistance and reviewed by Rossi Law before publication. It provides general information only and is not legal advice. Please seek advice for your specific situation.