Climate-Related Greenwashing and Australian Consumer Law
Christine Parker and Hope Johnson
Consumer law is one way in which the law supports and enables consumerist economic and social systems that contribute to the production of greenhouse gas (GHG) emissions. Nevertheless, climate advocates and leaders are now calling on consumer law to be a force for positive climate action by ensuring that consumers are given sufficient meaningful and accurate information about the climate credentials of different products to enable climate conscious consumption. As a result, consumer law action against greenwashing (deceptive advertising about environmental credentials or actions) is now a priority for consumer regulators and for public interest litigation by environmental advocacy groups.
Section 1 of this chapter shows how consumer law has contributed to the climate crisis by supporting consumerism. It then shows how at the same time climate conscious consumption is seen as a solution to the climate crisis. Section 2 sets out how both the Australian Competition and Consumer Commission (ACCC), Australia’s lead consumer law enforcement agency, and environmental advocacy groups are using the prohibition on misleading and deceptive conduct (and related provisions) in the Australian Consumer Law to prevent climate greenwashing and support climate conscious consumption. Section 3 of the chapter concludes by suggesting some stronger options for using law and regulation to prevent greenwashing and to support the transition to a climate safe future that do not put all the responsibility on climate conscious consumers alone.
Key Questions
- Do you see consumer law more as responsible for promoting over-consumption and thus contributing to climate change or more as a tool for empowering climate action by providing consumers with information about the environmental credentials of different products and services?
- How can regulators and activists use consumer law to contest climate greenwashing?
- What are some reasons for prioritising consumer law action against climate greenwashing within legal responses to climate change?
- What are some counterproductive effects of using consumer law action against greenwashing within legal responses to climate action?
- What kinds of new laws might be introduced to prevent greenwashing?
- How could we radically reimagine consumer law for climate action?
Chapter Outline
The idea that consumers can make purchasing choices that will shape the market to drive change for climate mitigation and adaptation because the more consumers purchase more climate-friendly products, the more businesses will be incentivised to take climate action to attract more consumers.
False, misleading or deceptive marketing claims about the environmental credentials of a product, service, brand or company.
Court action ‘intended to achieve change to law and policy that will benefit individuals and communities beyond those directly involved in the campaign'.[1]
[1] Andrea Durbach, Luke McNamara, Simon Rice and Mark Rix, ‘Public Interest Litigation: Making the case in Australia’ (2013) 38(4) Alternative Law Journal 219, 219. It should be noted that defining ‘public interest’ is notoriously challenging, and the term has not been definitively defined by legislation or by the courts: see, e.g., Chris Wheeler, ‘The Public Interest Revisited - We Know It’s Important But Do We Know What it Means?’ (2016) 72 Australian Institute of Administrative Law Forum 34–49.
The idea that people should pursue their individual interests, and realised their personal identity and social status through the consumption of various goods and services.
Australia’s lead regulator for implementing and enforcing Australian Consumer Law.
