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Businesses put on notice over 'green' claims in advertising

7 February 2008

Businesses have been put on notice after the Australian Competition and Consumer Commission's recent decision to closely examine advertising containing references to carbon offsets and 'green' products to ensure accuracy.

The ACCC has recently released an issues paper that indicates it will be carefully scrutinising advertisements relating to 'green' products and the offsetting of greenhouse gas emissions to ensure that those claims are not overstated and are able to be substantiated scientifically.

Allens Arthur Robinson Partner Grant Anderson said that the ACCC's focus on this area is a response to the increasing availability of carbon offsets in the market, which in turn has been driven by an increasing awareness among consumers and business of the impact of greenhouse gas emissions on our environment.

'Many businesses, such as energy retailers, airlines and financial institutions, also realise that providing or acquiring carbon offsets that reduce the size of their carbon footprint or that of their products and services is not only good for the environment, but also good for raising their profile as responsible corporate citizens,' Mr Anderson said.

'At the same time there is considerable concern, both in Australia and internationally, that the lack of regulation regarding the required quality of voluntarily created carbon offsets means that there are many products on the market that do not actually represent real and permanent reductions in the level of greenhouse gas emissions.'

Mr Anderson said that the introduction of a widely accepted standard, either by government or industry, would remove much of the concern that currently surrounds the integrity of some of the carbon offsets that are on offer, and would ensure that the purchasers of these products are making the contribution to the environment that they intend.

'It would also enable businesses that acquire these products for the purpose of advertising their move towards carbon neutrality to have a degree of confidence that their advertisements in this respect are not misleading or deceptive.'

Mr Anderson and AAR Lawyer Adam Ross have written an extensive article on this topic, which can be read at http://www.aar.com.au/pubs/.

Ends

For further information, please contact:

Jason Silverii
Corporate Affairs, Melbourne
Ph: +61 3 9613 8005
Jason.Silverii@aar.com.au

 

 

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Notes for editors.

Founded in 1822, Allens Arthur Robinson offers one of the most comprehensive legal networks in Australia and Asia with more than 1500 personnel based in 14 cities and eight countries across the region. Clients voted Allens Arthur Robinson the Best Professional Services Firm (revenue over $200 million) and Best Law Firm (revenue over $100 million) in the annual BRW Client Choice Awards 2005, 2006 and 2008. We have been an EOWA Employer of Choice for Women since 2004.

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