Business operators have to be extremely careful when making statements about “green” or “carbon neutral” products or risk monetary penalties in excess of $1 million.
The Australian Competition and Consumer Commission says it is getting a steady increase in inquiries and complaints around “green” marketing.
One of its most recent cases has been instituting legal proceedings against GM Holden Ltd, which supplies and markets Saab motor vehicles in Australia and trades as Saab Australia, alleging misleading and deceptive conduct and false representations concerning “green” claims made in the advertising of Saab vehicles.
In a number of Saab is Green newspaper and magazine advertisements in July and August 2007, Saab made various statements including, Grrrrrreen, Every Saab is green, Carbon emissions neutral across the entire Saab range and Switch to carbon neutral motoring to promote the green credentials of its motor vehicles. The advertisements also contained a statement that, in addition, Saab would plant 17 native trees in the first year following a Saab vehicle purchase as a carbon offset.
The ACCC alleges that the Saab is Green advertisements were misleading and that Saab has breached sections 52 and 53(c) of the Trade Practices Act 1974 because:
• there would, in fact, be a net release of carbon dioxide into the atmosphere by the operation of any motor vehicle in the Saab range
• planting 17 native trees would not provide a carbon dioxide offset for any period other than a single year’s operation of any motor vehicle in the Saab range, and
• Saab vehicles do not have any attribute or attributes which contribute to reduced carbon dioxide emissions by those vehicles compared with Saab vehicles supplied prior to the publication of the advertisement.
According to ACCC commissioner, John Martin, 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.
“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.”
Our advice? If you want to “green” your business with the aid of a third-party contact the ACCC first and make sure you’re dealing with a reputable company. Then, if somebody does question your claims you really do have a leg to stand on.
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