Beware the mobius loop: greenwashing guidelines for fashion brands

Greenwashing refers to a strategy used by undiscerning brands, who want to capitalise on eco-conscious consumers by making their products or practices appear better for the planet than they actually are. Under the Australian Consumer Law, fashion businesses have a responsibility not to make any false or misleading claims about their environmental or sustainability credentials.

Well, some brands may dishonestly charge more for their products, knowing their customers are more willing to pay extra money if they think they’re doing something good for the planet. It’s also not fair on brands who actually do practice what they preach when it comes to sustainability, which can be costly and time-consuming to implement into a supply chain. We want consumers to be able to trust what they’re told about what they’re buying, and what impact their purchase choices are having on the environment.

Any claims made about the environment or sustainability must be all three of the following:

• True;
• Accurate; and
• Based on reasonable grounds.

Even if something is technically correct, it can still mislead consumers if it’s not clearly explained, such as, environmental benefits that are delivered by the company, but only in certain circumstances. Companies should only make claims that can be traced to a genuine environmental impact, and that there is clear, credible (preferably scientific) evidence to back it up. Make sure this evidence is transparently available to your customers, for example,  on your website, but make sure it’s easy to find, written in non-technical language and consistent with your other sustainability messaging – no hiding in the fine-print. Make sure to never exaggerate how good something is for the planet. Stick to claims that are clear, provable, and that err on conservative rather than overblown. Transitioning to sustainable practices takes time, and it’s okay to be honest and open with customers about the improvements you’re striving for.

A ‘claim’ doesn’t even have to be in writing to catch the attention of the Australian Competition and Consumer Commission (ACCC), even visual elements like colours or logos can be considered misleading in certain contexts. In fact, leaving out key information in what you do say can be just as bad as what you don’t say. The key to interpreting a ‘claim’ is to look at the overall impression of the message that’s being sent. What is the business actively encouraging you to think about their products or their brand?

For example, something as simple as the use of the ‘mobius loop’:

could create an impression that your brand recycles its materials, or uses recycled material. This is a problem if it doesn’t.

The ACCC takes reports about businesses who may be overstating their beneficial impact on the environment and may start compliance or enforcement action. Recently, Clorox Australia had to pay a $8.25 million penalty after the Federal Court found it misled consumers over claiming it used “ocean plastic” in its GLAD garbage bags. The plastic was collected from communities in Indonesia located far from the ocean. Responsible fashion brands should be across the rules about what can and can’t be claimed to avoid any trouble.

The ACCC has a list of recommendations to help brands. The first rule is that broad claims are more likely to be considered misleading, because they can be interpreted in a multitude of ways. Some terms that the ACCC considers fall in the ‘danger-zone’ of being too broad include ‘green’, ‘environmentally friendly’, ‘eco friendly’, and ‘sustainable. That’s not to say there’s a moratorium on using these words in your branding, but make sure you’re using them to supplement a description of a specific environmental benefit that you’re delivering.

Check out the ACCC’s guide on making environmental claims for businesses for more info:

Making environmental claims: A guide for business | ACCC

Questions? You can contact our expert fashion law team any time by calling (03) 9510 9888, or emailing:

Tugce Ayata
Solicitor, Sanicki Lawyers
tugce@sanickilawyers.com.au