An Australian court has fined Glad owner Clorox Australia A$8.25 million ($8.87m) for making false or misleading claims that certain Glad-branded bags were partly made from recycled “ocean plastic.”
The Australian Competition and Consumer Commission (ACCC) contended that Clorox Australia misled consumers by marketing its Glad to be Green ‘50% Ocean Plastic Recycled’ Kitchen Tidy Bags and Garbage Bags as being made from at least 50% recycled plastic sourced directly from the ocean or sea.
Instead, the bags were composed of 50% recycled plastic collected from Indonesian communities lacking formal waste management systems, located up to 50 kilometres from a shoreline. The remaining materials included non-recycled plastic, processing aids, and dye.
The court ruled that Clorox breached the Australian Consumer Law.
Between June 2021 and July 2023, over 2.2 million units remained on shelves in the described packaging.
“Claims about environmental benefits matter to many consumers and may impact their purchasing behaviour,” said ACCC chair Gina Cass-Gottlieb.
“This is also a significant matter because consumers have limited or no ability to independently verify the accuracy of the claims made on packaging, and it also disadvantages competitors who are accurately communicating their environmental credentials,” Gottlieb added.
Clorox cooperated with the ACCC throughout its investigation and legal proceedings, admitting to the allegations and agreeing to make joint submissions to the court.
The company was directed to implement a compliance programme for Australian Consumer Law, post a corrective notice on its website, and cover a portion of the ACCC’s legal expenses.
Ensuring Accuracy in Environmental Claims
The Australian regulator emphasised that while businesses are encouraged to innovate and provide eco-friendly products, they must ensure all environmental claims are transparent and truthful.
“We take allegations of greenwashing extremely seriously and will continue to monitor claims made by businesses and, where appropriate, will take enforcement action on misleading environmental claims.”
The deceptively labelled products were withdrawn from sale in July 2023, following Clorox’s awareness of the ACCC’s investigation.