Feature
Issue No. 44 - December/January 2008
Greenwash
Green business consultant Jean Cannon notes the growing consumer concern about climate change and increasing demand for “green” products - and points out the temptation to “greenwash” marketing claims to exploit market sentiment.
“Consumers are waking up to the need to look after the environment and marketers are jumping madly on the bandwagon,” Jean says.
“Marketers sell on emotion so they often stretch the truth to build that very emotion that connects with the buyers. It is their job.
“Up to 50% of Australians will now investigate the origins of a product or service, and will pay more for a product that they believe is from a sustainable source.”
Jean says the consumer’s willingness to believe vague claims is the root of the problem.
“All this confusion about what ‘green’ really means is spawning a wide range of environmental certifications - generally product certifications,” she says.
“There is confusion about what the certifications mean and whether and what quality any auditing has.
“The Australian Competition and Consumer Commission has launched a crackdown on green claims with the release of its guidelines, Green Marketing and the Trade Practices Act, in November 2007.”
Under the Act, penalties can be severe. The maximum fine is $1.2 million for companies engaging in misleading and deceptive conduct.
“The ACCC is already taking court action against car manufacturer Saab,” ...
