It has been widely recognised that “green” claims can be a powerful marketing tool, as consumers are looking for these assurances when making purchases. For some time now, companies have been bandying around terms such as “green” and “environmentally friendly” or whacking recycling logos or pictures of dolphins on the packaging without the practices to back it up. To protect the community from being misled by all these claims, the ACCC has released its first green marketing guidelines.
The ACCC’s guideline; Green Marketing and the Trade Practices Act, can help your business in two main ways. Firstly, it can help you become savvier when purchasing products that claim to increase environmental performance for your business. Secondly, it can assist you in ensuring that your business does not make any false, misleading or deceptive claims about its own conduct, services or products.
Civil action is currently being taken against Holden GM by the ACCC. Holden GM, when supplying Saab vehicles, claimed that seventeen trees would be planted for each Saab sold, thereby implying that carbon dioxide emissions would be offset and that Saabs are “greener”. The ACCC has found that the emissions would only be offset for one year, and not for the life of the vehicle. Having identified several companies making misleading claims or overstating the environmental benefits of its products, the ACCC is taking action. This demonstrates that green marketing is a powerful tool and needs to be used cautiously, even if a company has good environmental intentions.
To become savvier when purchasing products or to ensure your business does not make false, misleading or deceptive claims, check the claims against the following information provided by the ACCC
» Are vague terms like “green”, “safe” or “friendly” being used?
These terms mean different things to different people and can be misleading. The use of these terms, without any substantiation, does not mean anything.
» Are unqualified graphics or logos being used?
A recycling logo, for example, shouldn’t be used if the product is not made wholly out of recycled material. Pictures of trees and animals can also give false impressions. Logos of governing agencies or licensing boards cannot be used unless official approval has been granted.
» Are the claims in plain language?
All claims need to be accessible to all sectors of the community and cannot use overtly scientific jargon.
» Are the claims substantiated?
All claims need to be able to be backed by proof.
» Are the specific benefits to the environment identified and explained?
It is not enough to say that a phosphate free vehicle detergent, for example, is “safe for the environment”. Rather, it should be explained that phosphate causes algae build up in river systems, so phosphate-free detergents are less harmful to our waterways.
» Are the claims purporting the product to have a greater benefit than it actually does?
Cars, for example, cannot be advertised as “green”. Whilst a certain model may have superior fuel efficiency, the car still has negative environmental impacts.
» Are the claims in an appropriate context?
Claims that an aerosol product is “CFC free” are not appropriate as most aerosol products containing CFC are illegal, therefore the product claiming to be “CFC free” is no different to the rest of the products on the market.
In all forms of marketing, any claims about environmental performance need to be honest and truthful, specific, in plain language, identify the significance of the benefit and be able to substantiated. Marketing involves the name of the business, packaging, labeling and ads (across all mediums; radio, television, print and the internet).
At the end of the day, it is great that as a society we are more environmentally aware than ever. There are a lot of products out there that really are made from recycled material or are composed of totally organic substances, and you can benefit from using these products. There are also lots of products being made specifically for the automotive industry that help increase environmental efficiency. But it is vital that the “green imposters” are weeded out and that businesses aren’t tricked into environmentally harmful practices due to being misled by a product.
So next time you are in the market for something “green”, make sure you do your research and confirm that the product is something that will help your business increase its environmental performance. Also, if you’re thinking of renaming your business to “Dolphin Friendly Green Car Repairs”, you may want to have a rethink.
This article is designed to help business advertising/marketing and is not intended to reflect on any company targeted by ACCC. Green marketing is a powerful tool and needs to be used cautiously
Sophie Luttrell
Motor Traders' Association of NSW |
