Australian Consumer Law (Competition and Consumer Act 2010, Schedule 2); ACCC guide Dec 2023
For Australian marketing and product teams working out what the ACCC expects when a product is called green or sustainable. This page covers what you need to know and ways to avoid running into issues.
What we've seen reported
In Australia, the ACCC's guide Making environmental claims, published December 12, 2023, sets out eight principles for environmental and sustainability claims under the Australian Consumer Law, which prohibits misleading or deceptive conduct.1,3
Last updated October 2026 · General information only, not legal advice. Sources.
What the rules cover
These are the kinds of wording the ACCC's environmental claims guidance describes under the Australian Consumer Law, with its own examples of how each can mislead.2
| Phrase or term | In practice |
|---|---|
| "Green" | The ACCC calls it vague, conveying little beyond being less damaging than others. |
| "Environmentally friendly", "eco friendly" | Risks implying no harm at all across production, use, delivery and disposal. |
| "Sustainable" | Overly general; risks implying resources are used without contributing to harm. |
| "Does not harm the environment" | Exaggerates the benefit when only part of the product is recycled, in the ACCC's example. |
| "Recyclable" | Misleading where cups can be recycled only through in-store bins, and the ad doesn't say so. |
| "Reusable" | Read by consumers as many uses, so cutlery lasting about a week risks misleading. |
| "Reducing emissions" | Leaves out that total emissions are rising while a small share of flights changes. |
| Mobius loop symbol | May suggest the whole product and packaging is recycled or recyclable. |
The Federal Court has already ordered penalties over environmental claims on packaging under the Australian Consumer Law.
A household products supplier was ordered to pay penalties over "ocean plastic" claims on garbage bag packaging that also used ocean wave imagery.
Where it goes wrong
One approved claim ends up in many channels, markets and languages. Along the way it gets shortened, translated and reworded, and some versions end up using the very phrases you are trying to avoid.
"Bottle made from 50% recycled plastic. Cap not included."
How Arbitr helps
Manually review everything? Or do what modern teams do and use AI to check that what you publish matches what you approved.
FAQ
On more than packs and ads. The ACCC says businesses should consider what's left out and the visual elements, colors and logos they use, not only the words,2 and we usually find green claims in:
Write the specific claim once and approve it with its limits. The ACCC recommends avoiding broad terms such as "green", "eco friendly" and "sustainable",2 and those are exactly the words that creep in when a claim is cut down for a tile or a post. Check each short version against the approved one. More on this is on our brand compliance page.
One record per claim: the approved wording, the evidence behind it, which parts of the product it covers, any conditions and where it runs. The ACCC says independent, scientific evidence is the most credible and suggests making it easy for consumers to find,2 so keep the record ready to share. When a product, supplier or recycling route changes, update the claim and its evidence together.
How it applies to a specific claim is a question for your legal adviser. Where that claim appears across your markets and languages is a question Arbitr answers.
Closely enough that one approved claim set can serve several markets, with local checks. The EU's rules on generic environmental claims are on their own page, and other markets are on our environmental claims hub. Sustainability claims about financial products in Australia have separate ASIC guidance, on our ASIC greenwashing page.
The ACCC released it on December 12, 2023, as final guidance setting out eight principles for trustworthy environmental claims. According to the ACCC, it incorporated feedback from more than 150 consumer, business and environmental stakeholders on an earlier draft.4
Using any claim, or leaving out key information, in a way that makes a product or service seem better or less harmful for the environment than it really is, according to the ACCC. It adds that omissions can mislead depending on the overall impression created.2
No. Arbitr checks content against rules your team has approved, including your legal team's reading of a regulation. What a regulation means for your business stays a question for your legal adviser.
