Green Marketing under Scrutiny

The Australian Competition and Consumer Commission (ACCC) is investigating the green claims being made by businesses, as a result of rising consumer complaints surrounding green marketing.

“The trend is consistent with the growing trend for business to green market their goods and services,” says John Martin, ACCC commissioner. “Many incorrectly believe green marketing refers solely to the promotion of advertising of products with environmental characteristics.” Consumers are associating words like phosphate free, recyclable, eco-friendly, and environmentally friendly with green marketing, he explains.

“If there is a green edge to be found, it will he exploited,” says Martin. “Consumers across the spectrum are becoming more concerned and aware about the natural environment and hence businesses marketing goods with environmental characteristics will have an advantage over businesses that do not.”

The ACCC will introduce business and consumer education initiatives to increase green compliance.