The Federal Court has ordered Clorox Australia to pay $8.25 million in penalties after admitting to making false and misleading claims about the environmental credentials of its GLAD-branded plastic products.
The Australian Competition and Consumer Commission (ACCC) announced the outcome on Monday, stating that Clorox breached Australian Consumer Law by claiming its GLAD kitchen and garbage bags were made with at least 50 per cent recycled plastic sourced from ocean waste. These claims appeared on packaging and marketing materials between June 2021 and July 2023.
However, investigations revealed that the bags did not contain any recycled ocean plastic, prompting legal action and public scrutiny over greenwashing — a growing concern in both the retail and environmental sectors.
“The Court’s decision sends a clear message to companies: misleading environmental claims will not be tolerated,” said ACCC Chair Gina Cass-Gottlieb.
“Consumers are increasingly making purchasing decisions based on environmental claims. Businesses must ensure those claims are truthful and can be substantiated.”
Clorox, a U.S.-based multinational behind household brands like GLAD, Pine-Sol, and Clorox bleach, admitted to the conduct and cooperated with the ACCC’s investigation. The company acknowledged that its representations were likely to mislead customers who believed they were making an environmentally conscious purchase.
The misleading claims were featured prominently on GLAD product packaging sold across major Australian retailers, including supermarkets and department stores. Many of the labels specifically referenced the use of recycled plastic collected from ocean sources — a factor likely to influence environmentally-minded consumers.
The ACCC emphasised that Clorox had not verified its environmental claims with adequate evidence before making them publicly. The regulator said the use of such unverified sustainability messaging risked undermining consumer trust in the growing market for environmentally friendly products.
In addition to the financial penalty, the Court ordered Clorox to implement a compliance program, review its current environmental claims, and publish corrective notices across its communication platforms.
Environmental groups have welcomed the decision, citing the ruling as a significant moment in holding corporations accountable for misleading eco-friendly branding.
“This fine is a warning shot for companies attempting to capitalise on public concern about plastic pollution without actually changing their practices,”
said Jo Davy, spokesperson for the Environmental Justice Collective.
The ACCC has been actively pursuing greenwashing cases in recent years and says it is monitoring a growing number of businesses making questionable sustainability claims. It is currently investigating several other companies across sectors, ranging from fashion to food packaging.
Clorox’s spokesperson told The Australia Today, “GLAD Australia takes seriously its obligations to package and market its products with claims that are accurate and substantiated.”
“While 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 and reaffirm our commitment to offering products that help reduce environmental impact and meet consumers’ evolving needs.”
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