The Australian Competition and Consumer Commission (ACCC) has announced two internet sweeps that will be conducted to identify misleading environmental and sustainability marketing claims and fake or misleading online business reviews.
The sweeps are to be conducted over the coming weeks as part of the ACCC’s compliance and enforcement priorities for 2022-23 which aims to identify and crack down on deceptive advertising and marketing practices by businesses or industries.
For one of the sweeps, at least 200 company websites will be reviewed for misleading environmental claims across a range of targeted sectors including energy, vehicles, household products and appliances, food and drink packaging, cosmetics, clothing and footwear.
“As consumers become increasingly interested in purchasing sustainable products, there are growing concerns that some businesses are falsely promoting their environmental or green credentials,” ACCC Deputy Chair Delia Rickard said. “Misleading claims about products or services undermine consumer trust and confidence in the market.
“This sweep forms a core part of our work in actively monitoring for ‘greenwashing’ in the market and will help inform what steps businesses can take to improve the integrity of their environmental claims,” Rickard added. “In looking at claims we are concerned about what the ordinary consumer will understand the claim to mean. The ACCC won’t hesitate to take enforcement action where we see that consumers are being misled or deceived by green claims.”
A separate internet sweep will be a series of smaller-scale sweeps targeting fake or misleading online reviews and testimonials. The first will tackle deceptive practices in the digital marketplace, particularly targeting reviews and testimonials posted on business’ websites, Facebook pages and third-party review platforms.
At least 100 businesses will be reviewed in this initial sweep, targeting areas in which consumers most commonly rely on reviews including household appliances, electronics, fashion, beauty products, food and restaurants, travel services, sport, home improvement, kitchenware, health products, and furniture.
The second sweep will tackle misleading advertising by influencers on social media, focusing on identifying posts that fail to clearly disclose advertising or sponsorship.
“Unfortunately, consumers are facing an ever-increasing range of manipulative marketing techniques designed to exploit or pressure them, due in part to the huge number of online information sources available,” Rickard said. “Consumers often rely on reviews and testimonials when making purchases, but misleading reviews can be harmful.
“Businesses can also be significantly impacted, particularly by negative reviews at the hands of competitors or third-party professional reviewers acting on behalf of a business,” Rickard added. “Review manipulation of any kind can impact a business’ star or numeric rating, leading to an overall misleading impression of the business.”
The sweeps will be followed up with compliance, education and potential enforcement activities alongside a campaign to improve awareness on such activities to enable consumers to make more informed purchasing decisions.
“Well-functioning online markets are key to the modern economy,” Rickard said. “To realise the full benefit, consumers need confidence to engage with online businesses.”
