Greenwashing, electricity prices, delivery timeframes and influencers: ACCC's 2024-2025 Compliance and Enforcement priorities

Although the ACCC is yet to release its product safety priorities, its 2024-25 Compliance and Enforcement Policy and Priority report, released in March, sheds light on where the ACCC might focus its efforts to ensure compliance with the Australian Consumer Law in the next financial year.

Greenwashing

A recent report found that 57% of businesses reviewed in an internet sweep were potentially greenwashing, that is, giving a false impression or misleading information about the environmental impact of their products. Greenwashing is a growing concern as consumers become increasingly conscious of their environmental impact and seek products with substantial and ethical credentials.

The ACCC has recently followed the lead of ASIC which brought its first proceeding related to greenwashing against Mercer Superannuation (Australia) Limited in 2023. On 18 April 2024, the ACCC commenced action against Clorox Australia Pty Ltd alleging it misled customers into believing that a line of its products was created from a particular type of recycled materials. The ACCC says items in Clorox's "50% Ocean Bound Plastic Recycled Bags" range were in fact collected inland. The matter is ongoing.

Businesses, regardless of their industry, should ensure any claims about their products' or services' environmental impact can be substantiated.

Misleading pricing of essential services

The ACCC Chair, Gina Cass-Gottlieb, has noted that the ACCC's priorities for this financial year have been shaped by the cost of living pressures currently faced by the Australian community.

Businesses who sell "essential goods", such as groceries and electricity should turn their mind to the pricing of their products and particularly to what the ACCC may consider appropriate in light of the current economy.

In particular, the ACCC is "actively monitoring" electricity retailer advertising and price increases for compliance with the Electricity Retail Code of Conduct and the Australian Consumer Law.

Crackdown on misconduct by retailers in connection with delivery timeframes

The ACCC is focusing on ensuring businesses have the capacity to meet the standards they represent on their website.

On 4 March 2024, the ACCC commenced proceedings against Mosaic Brands Limited alleging that the company made false or misleading representations about projected delivery times on their websites, and statements about consumers' eligibility to secure refunds. The case is ongoing.

Are you trying to influence me?

With the rise of influencer marketing and gamification of shopping, the ACCC has signaled its focus on misleading and deceptive advertising in this space.

The ACCC recently investigated influencer marketing as well as brands and marketers who use influencers to advertise online. Influences and brands may mislead consumers by making incorrect or vague statements (or omitting key information) about their relationship to a brand, product or service.

The ACCC is considering its involvement with other industry bodies to assess ACL concerns and take enforcement action where appropriate.

Safety of nursery products

This priority builds on the ACCC's product safety focus for 2023-24 on consumer products such as sleep aids and toys for children under 3.