Australia Fines Clorox A$8.25 Million Over Misleading Recycled Plastic Claims

Clorox’s Australian subsidiary has been ordered to pay A$8.25 million (approximately $5.19 million USD) after Australia’s Federal Court found the company had made deceptive environmental claims about its GLAD-branded kitchen and garbage bags. The ruling follows an investigation and legal action by the Australian Competition and Consumer Commission (ACCC), according to Reuters.

Between June 2021 and July 2023, Clorox falsely promoted the products as being made with “at least 50% recycled ocean plastic,” a claim that was central to its marketing of the GLAD bags. However, the ACCC found that more than 2.2 million of the bags were actually manufactured using plastic waste sourced from land-based communities in Indonesia—areas lacking formal waste management systems and located as far as 50 kilometers from the coast, per Reuters.

The ACCC stated that Clorox admitted to breaching Australian Consumer Law during this period. Although the court accepted that the company did not intend to mislead consumers, the misleading environmental messaging was found to have the potential to distort consumer decision-making and undermine trust in genuine sustainability efforts.

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In a statement sent via email, Clorox acknowledged the outcome, saying, “The ACCC and the Court recognised that Glad did not intend to mislead consumers, we respect this outcome and see this as an opportunity to further enhance our practices.”

The judgment arrives as public and regulatory scrutiny intensifies around so-called “greenwashing,” where businesses are accused of overstating the environmental benefits of their products. The court emphasized that eco-friendly claims are increasingly significant to consumers and must be held to a high standard of accuracy.

As part of the court’s decision, Clorox is also required to implement a compliance program under Australian Consumer Law, issue a corrective notice on its website, and cover a portion of the ACCC’s legal expenses, according to Reuters. The company has since halted production of the GLAD products in question as of July 2023, following the launch of the ACCC’s inquiry.

Source: Reuters