It is not intended that legal tests be applied to determine whether advertisements are misleading or deceptive, or likely to mislead or deceive, in the areas of concern in this Code.

Instead, consideration will be given as to whether the Target consumer would likely be misled or deceived by the Advertising.

Any Environmental Claim should be accurate, true and factually correct.

Even claims that are factually correct can sometimes still mislead consumers. Advertisers should consider the overall impression created by the claim and within the overall context of the Advertising, including through use of visual and audio elements. Advertising can be found in breach of this provision if the overall impression is false, inaccurate, misleading or deceptive even if each individual claim can be substantiated.

Comparative claims for products or services, whether the comparison is with the advertiser’s own previous process or product/service or with those of a competitor, should be worded in such a way as to make the comparison clear.

Advertisers should present information to consumers in a way that enables them to make like-for-like comparisons.

Care should be taken when making absolute claims (for example: that a product does not contain or is free from a chemical/substance) that it can be adequately substantiated as such. More guidance can be found in the ACCC’s guide – Making environmental claims. A guide for business.

Advertising making top parity Environmental Claims (e.g. “no one better”) should have reasonable data backing up the claim.

Regulation, research and consumer understanding of Environmental Claims is constantly evolving. Given this, advertisers must ensure their Environmental Claims remain valid through the life of the advertisement.

• • have reasonable grounds for making an Environmental Claim, based on evidence held at the time the claim ismade; and
  • not misrepresent third party certifications and validations supporting an Environmental Claim.

Supporting evidence

Environmental Claims in Advertising must be substantiated and verifiable.

Advertisers must be able to support claims at the time the claim is made but are not necessarily required to include that supporting information in the advertisement unless it is required to make the claim true. Additional information provided must be truthful and not misleading. Supporting information held by advertisers at the time a claim is made must include sufficient detail to allow evaluation of a claim by the Target Consumer.

Third party certification or verification

Advertisers should carefully consider the use of any third party certification schemes or verification bodies to ensure they are independent, transparent, reputable and robust and do not give the impression that the certification or verification goes beyond what has been certified/verified.

Scientific claims

Scientific claims should be consistent with the body of evidence, not simply selective parts that can be used in a misleading way.

Test methods & statistical models

Test methods and statistical models may be appropriate. However, they must be relevant to the particular attribute and product conditions of use, and to the particular environmental impact that the advertiser is measuring.

Tests and statistics used should relate to conditions likely to be mexperienced by the consumer to assure the test results provide a reliable scientific basis to substantiate the specific Environmental Claim.

Life cycle claims & life cycle assessments

If an Environmental Claim states or implies that a product has minimal negative environmental impact throughout its life cycle (for example, “from cradle to grave, the most eco-friendly product on the market”), the claim may imply that it is supported by a Life-Cycle Assessment (LCA), and the advertiser should disclose the basis that was relied on to make the claim. If Advertising makes an Environmental Claim based on a single attribute, this must be made clear and be appropriately substantiated.

Products and services may have different environmental impacts across different stages of their life cycle. Advertisers do not necessarily need to conduct a LCA or provide information about the full product life cycle in every claim however should consider the overall impression created by the Environmental Claim. The broader the claim, the more likely the need to consider life cycle implications.

It should always be clear to which stage or which part of an organisation, product or service an Environmental Claim refers. If an Environmental Claim only relates to part of the life cycle, it should be made clear which part. For example, if a claim relates only to the transport of the product, this should be clearly stated and it should not also suggest that it applies to the manufacture of the product.

Compostable claims

Environmental Claims about compostability must be based on reliable evidence. For example, a current compostable certification or similar and whether the product or packaging has been certified for home or industrial composting.

Clear language

Scientific terminology or references should be relevant and accurate. They should be used in a way that can be readily understood by the Target Consumer, including through further information provided to explain the terminology (for example through website links, QR codes and other available means).

Be specific – avoid broad, vague or unqualified claims

Advertisers should be specific when making Environmental Claims and it should be clear if the Environmental Claim refers to an entire or part of a product, component, package, service or company’s business operations.

Vague, broad or non-specific claims (sometimes called “general” claims) include claims such as “environmentally friendly,” “eco friendly”, “eco safe”, “green”, “go green”, “choose green”, “sustainable,” or any other terms implying that a product or an activity has no impact—or only a positive impact—on the environment. Such claims may be misleading unless appropriately qualified, a high standard of proof is available, or the claim is linked to a specific properly substantiated environmental attribute that clearly limits the scope of the claim to such attribute.

A specific claim about individual environmental attributes supported by reliable evidence could be linked to a claim of “sustainability”(for example, “our products are sustainable because they are made of 100% post-consumer recycled content and are recyclable”) However, Advertising should not state or imply that a product is “sustainable” (without relevant qualifications) simply because it has some positive environmental benefits.

Include important limitations, conditions or qualifications in a way that is clear

Advertisers must consider if there are any conditions that need to be met or steps that need to be taken for a claim to be true. If claims are only true in certain circumstances, advertisers should explain this to consumers clearly. Any information or qualifications in small print should not conflict with the overall message of the Environmental Claim.

Advertisers should avoid providing partial information where it may create a misleading overall impression. Absolute or broad claims which require qualification to be true should not be made without that qualification. For example, claims like: “Made from recycled materials”, “Renewable”, “Produced with renewable energy”, “Plastic free”, “Uses less water” should be qualified if they only relate only to an aspect, portion or stage of a product, service or business and this should be made clear in the Advertising.

This rule is not intended to limit or restrict advertisers from offering additional useful information through website links, QR codes and other available means to support rather than contradict the overall message contained in the Environmental Claim.

Emissions related claims

In relation to emissions related claims, the Target Consumers may have difficulty understanding what is meant by broad, headline claims like “Carbon Neutral”, “Climate Neutral” or “Net Zero” unless further information is provided to explain the claim. Emissions related claims should be expressed in a way so as to be clear to the Target Consumer and should (where relevant):

• Be based on a thorough emissions baseline assessment using established and recognised methodologies
• Provide clear information to the Target Consumer on what emissions are included or excluded from any assessmentrelevant to the Environmental Claim
• Clearly and transparently communicate action taken to underpin the claim, including actual emissions reductions as opposed to reliance on purchased offsets
• Where there is reliance on offsets to make a claim, those offset projects should be verified to ensure the offsets have not already been claimed or been issued under multiple registries
• Avoid broad, headline emissions related claims where the emission reduction relates to a product, service or segment which represents a small proportion of the advertiser’s overall emissions profile
• For future claims, be based on reasonable grounds and in line with this Code.

Providing some information while leaving out important details which contradict or qualify the Environmental Claim is likely to be misleading.

Recyclable claims

When making ‘recyclable’ claims, advertisers should have regard to accepted Government or industry definitions of ‘recyclable’ (for example, Australian Recycling Label for consumer packaging). Where Advertising contains the Australasian Recycling Label, the use of the label should comply with Australasian Recycling Label rules.

Unqualified recyclable claims should only be made where publicly available or home recycling collection systems exist.

Advertisers should not make Environmental Claims that exaggerate an environmental benefit or understate an environmental harm.

Environmental Claims about a product, service or business should only be made when there is a genuine environmental benefit. You risk misleading consumers if you advertise environmental benefits which are irrelevant, insignificant, or simply advertise the observance of existing law (unless this is made clear).

Some claims that are literally true may be misleading because they exaggerate the benefits of the product or they may give an overall impression that is misleading. For example, a claim that a product contains “twice as much recycled content as before” when the mount was very low to begin with could be misleading or when one or more specific and accurate claims about relatively minor or related matters give a misleading impression about overall environmental effects.

Environmental Claims relating to aspirational targets or environmental goals should only be made if the advertiser has reasonable grounds at the time the claim is made. Reasonable grounds may include verifiable data, clear plans and milestones that outline how the target or goals will be met.

Where relevant:

• the goals should also be based on accepted methodologies (for example, the Science Based Targets Initiative), resources or technologies that are effective and available now (or the advertiser has a reasonable basis to consider they will be available to the advertiser in the near future);
• updates should be made available to the public about performance against the goals, including if the advertiser is on track to achieve them or any setbacks; and
• the advertiser should regularly revise the goals and any related Environmental Claims where it becomes apparent the advertiser will not meet them.