While consumers may be prepared to pay a price premium for a good or service that gives the impression of being better for the environment than an alternative, it is an area where they can be easily misled.

Environmental claims can include statements about recycling, biodegradability, and the use of recycled content or natural products. If you make environmental claims, they must be accurate, scientifically sound and substantiated.

We have released guidelines to help you understand your obligations when making environmental claims, including how to avoid breaching the Fair Trading Act.

The guidelines cover general principles and include examples of cases taken by the Commission in the past. The guidelines remind you to:

  • be truthful
  • be accurate
  • be specific
  • substantiate claims
  • use plain language
  • not exaggerate
  • take care when relying on tests or surveys.
Read the Environmental claims guidelines PDF (1 MB)