Clorox hit with government penalty for allegedly misleading consumers: 'May impact their purchasing behavior'

As the public becomes more conscious of environmental issues, companies are feeling the pressure to adopt sustainable practices.

However, seemingly positive changes can be inauthentic and merely a ploy to target eco-friendly consumers.

According to ABC News, Clorox Australia, the company behind GLAD plastic wrap and garbage bags, has been fined AUD $8.25 million for false claims that its products were partially made from recycled plastic from the ocean. 

What's happening?

From June 2021 to July 2023, over 2.2 million GLAD products were said to be made from 50% recycled ocean plastic.

However, the company has said that the products were made from 50% plastic that was collected from communities in Indonesia and not the ocean.

ABC News cited a consumer watchdog, which noted the material came from places "situated up to 50 kilometers away from a shoreline."

The Australian Competition and Consumer Commission sued GLAD, and the court found it to have breached Australian Consumer Law.

While recycling any plastic is a good thing, there's no need to deceive customers who want to help in efforts to clean up the ocean.

According to ACCC chair Gina Cass-Gottlieb, "Claims about environmental benefits matter to many consumers and may impact their purchasing behaviour."

The Clorox case is hardly the first instance of corporate greenwashing, a term that refers to a company deceiving consumers by lying about the sustainability or environmental-friendliness of their products.  

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Why is greenwashing concerning?

Transparent marketing helps consumers put their money where their mouth is, supporting the brands that support the causes that they do.

From the period of September 2022 to September 2023, greenwashing cases rose by about 35%, according to data from ESG and RepRisk. Oil and natural gas companies, followed by the financial industry, had the largest shares of incidents.

Many consumers care about sustainability in their products. According to a McKinsey survey, about half of consumers would be willing to pay for more sustainable packaging.

If the numbers are there to support a product being purchased, greenwashing to sway customers' decisions is even more dangerous. 

What's being done about greenwashing?

Scientists and consumer organizations are raising awareness of the fact that claims made by different companies may not be well-founded.

To buy safer or cleaner products, the responsibility ultimately falls on the consumer to research and understand what they are buying. Unfortunately, trusting the corporation not to deceive you isn't enough.

Many companies in the health and beauty industry, such as Sephora and MOB Beauty, have made conscious efforts to be authentically eco-friendly. You can also research eco-friendly clothing and other industries to support companies that are taking responsibility for caring for the planet.

Thankfully, many organizations, like the Australian Competition and Consumer Commission, are looking out for consumers.

"Increasingly consumers choose the products they buy based on their environmental impact, and in doing so they must be able to rely on the environmental claims made by businesses being accurate," Cass-Gottlieb said in a press release.

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