Exposed: TheTruth Behind "Eco-Friendly" Products!
From sunscreen to superannuation, Australian companies face hefty fines for misleading green claims.
As consumers increasingly prioritize sustainability, businesses are capitalizing on the demand for eco-friendly products and services. However, a wave of high-profile greenwashing cases in Australia reveals that not all "green" claims are genuine. Greenwashing—falsely marketing products as environmentally friendly—is illegal under Australian law, and recent legal actions highlight deceptive practices across various industries.
In April 2025, Clorox Australia was fined AUD 8.25 million by the Federal Court for falsely claiming its GLAD-branded garbage bags contained “50 per cent ocean plastic.” The court ruled the plastic was sourced from communities in Indonesia up to 50 kilometers from shorelines, not from oceans, misleading environmentally conscious consumers.
Superannuation providers have also faced scrutiny. In August 2024, Mercer Superannuation was fined AUD 11.3 million for misleading claims about its “Sustainable Plus” investment options, which were promoted as excluding fossil fuel, gambling, and alcohol industries but included such investments. Similarly, in March 2025, LGSS, the trustee for Active Super, was fined AUD 10.5 million for falsely claiming to eliminate investments in coal and oil tar sands, despite holding stakes in companies like Whitehaven Coal.
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In March 2024, Vanguard faced a AUD 12.9 million fine after the Federal Court found its AUD 1 billion ethical bond fund invested in fossil fuel-related activities, including oil pipelines and petroleum companies, despite claims to the contrary.
The Australian Competition and Consumer Commission (ACCC) has initiated legal action against Edgewell Personal Care Australia, alleging its Hawaiian Tropic and Banana Boat sunscreens, marketed as “reef-friendly” for omitting oxybenzone and octinoxate, contain other ingredients harmful to coral reefs. Edgewell contests these claims, asserting confidence in its products.
In May 2025, EnergyAustralia settled with Parents for Climate over its “Go Neutral” carbon offset scheme, which misleadingly suggested fossil fuel-based energy was climate-neutral. The company apologized, acknowledging that carbon offsets do not undo the environmental harm caused by fossil fuels.
Consumers play a critical role in combating greenwashing. The ACCC and Australian Securities and Investments Commission (ASIC) advise skepticism toward vague terms like “eco-friendly” or “sustainable” without evidence. Consumers should demand clarification, research a company’s transparency, and compare products’ environmental performance. Selective claims that highlight benefits while ignoring negative impacts, such as water use in production or transportation emissions, are red flags.
By making informed choices, consumers can hold businesses accountable and drive meaningful change through their purchasing power.
