Photo credit: www.theguardian.com

Clorox Fined for Misleading Claims About Ocean Plastic in Garbage Bags

The manufacturer of GLAD garbage bags, Clorox Australia, has been fined $8.25 million by the Australian Competition and Consumer Commission (ACCC) for making false statements regarding the eco-friendliness of its products. The case was brought before federal court due to misleading representations made between June 2021 and July 2023.

Clorox had marketed its kitchen and garbage bags as being composed of 50% recycled plastic sourced from ocean waste. However, investigations revealed that these bags were actually made from recycled plastic collected from communities situated up to 50 kilometers inland from Indonesia’s coastline.

During the timeframe of the misleading claims, the company sold over 2.2 million bags, each priced above the typical cost of standard household kitchen bags. Following the commencement of the ACCC’s investigation, Clorox ceased supply of these products in Australia.

In response to the allegations, Clorox acknowledged that the “50% ocean plastic recycled” labels on their packaging were indeed misleading and cooperated with the ACCC to settle on a financial penalty. Federal court judge Penelope Neskovcin delivered the $8.25 million fine, highlighting that Clorox had engaged in practices that amounted to greenwashing.

The judge’s ruling emphasized that such misleading claims deprived consumers of the chance to make informed decisions regarding their purchases, potentially leading them to overlook competitors’ products that may have offered genuine environmental benefits or were more economically prudent.

While acknowledging the severity of Clorox’s actions, Judge Neskovcin noted that this case, while significant, did not represent the most egregious instance of environmental misrepresentation.

In her judgment, she indicated that Clorox believed their products could genuinely help reduce plastic waste in the ocean and did not intentionally mislead consumers. The court recognized that Clorox engaged in discussions about the use of recycled plastics with their supplier, Oceanworks, and mistakenly considered “ocean-bound” plastics to be equivalent to ocean plastics.

Nevertheless, the court determined that Clorox was aware that the recycled materials were not sourced directly from oceanic locations. Alongside the fine, Clorox is required to pay $200,000 towards the ACCC’s legal expenses and to issue a public notice clarifying their previous claims and apologizing to consumers.

A representative from Clorox Australia expressed the company’s commitment to accurately market and package their products, viewing this outcome as a chance to refine their practices and strengthen their dedication to reducing environmental impacts while addressing the changing needs of consumers.

Source
www.theguardian.com