Australia’s Federal Court today ordered Clorox Australia to pay a total penalty of US$5.2 million for making false or misleading representations to consumers that certain GLAD kitchen and garbage bags were partly made of recycled ‘ocean plastic’ instead of ocean bound plastic (OBP)
Clorox admitted that its GLAD to be GREEN “50% Ocean Plastic Recycled” plastic bags were not actually made of at least 50% recycled plastic waste collected from the ocean as their advertising suggested. While companies can procure recycled plastic from organizations such as Ocean Cleanup, 4ocean Foundation and Waterhaul that collect it from the ocean and sell it to be made into sustainable products, that was not the source of Clorox’s recycled plastic.
Instead Clorox’s products were made from 50% ocean bound plastic. Ocean bound plastic has been discarded up to 50 kilometers from a shoreline and is considered likely to end up in the ocean. Clorox said its plastic came from Indonesia, a country that has lacked formal waste collection and recycling systems and is one of the world’s largest contributors to ocean plastic. Clorox was working with a plastics platform called Ocean Works that funds plastic removal and tracks it through the supply chain.
Saying that a product is made with recycled ocean plastic–meaning plastic pulled out of the water–is easier to communicate than saying it’s made with plastic that might have ended up in the water because it was in a country with poor waste management. However, some research has shown that consumers would prefer to purchase items in plastic packaging that can claim “prevent ocean plastic” which would have been more accurate.
The Court observed that “there is a particular societal harm that arises when conduct undermines consumers’ confidence in environmental claims”, adding that the “development of products that minimise adverse environmental impacts is beneficial” but “[e]nvironmental claims are useful for consumers only if they are accurate.”
Between June 2021 and about November 2022, more than 2 million Kitchen Tidy Bags were sold with packaging including the statements ‘50% Ocean Plastic Recycled Bags’, and ‘Made using 50% Ocean Plastic*’ around an image of a wave. In smaller font, on the back of the package it said:
‘These bags are made from 50% ocean recycled plastic, and have the trusted strength of Glad® to hold household waste on its way to landfill. Recycling ocean bound plastic reduces plastic pollution before it enters the ocean, helping to reduce pollution in waterways, save marine life and put an end to irresponsible waste.’
‘*Made using 50% ocean bound plastic that is collected from communities with no formal waste management system within 50 km of the shore line.’
From about 6 March 2022, Clorox began updating the packaging to include the statement ‘Made using 50% Ocean Bound Plastic*’ on the front of the packaging. Clorox discontinued the products in July 2023 after becoming aware that the Australian Competition and Consumer Commission was investigating the matter.
“Claims about environmental benefits matter to many consumers and may impact their purchasing behaviour. When those claims are false or misleading, this is a serious breach of trust, as well as the Australian Consumer Law,” ACCC Chair Gina Cass-Gottlieb said. “While the ACCC encourages businesses to innovate and offer environmentally sustainable products, businesses need to be clear and accurate when making representations about them.
