On 30 June 2025, the Australian Competition and Consumer Commission (ACCC) commenced proceedings in the Federal Court of Australia against Edgewell Personal Care Australia Pty Ltd and its US-based parent company, Edgewell Personal Care Company (collectively referred to as Edgewell), over allegations of ‘greenwashing’ in relation to their Hawaiian Tropic and Banana Boat branded sunscreen products (the Products).
The ACCC alleges in its Concise Statement that Edgewell represented that the Products were “reef friendly” in the course of their supply and promotion in Australia between August 2020 and December 2024.
The ACCC alleges that:
- Edgewell made representations that were “false, misleading or deceptive because the products contained ingredients which harm, or risk causing harm, to reefs”; and
- Edgewell “had no reasonable basis for making the “reef friendly” representations and/or the representations were not appropriately supported by scientific evidence or testing at the time they were made”.
The ACCC is seeking penalties, declarations, injunctions, costs and other orders.
The commencement of these proceedings reflects the ACCC’s 2025–2026 compliance and enforcement priorities, which include addressing consumer, fair trading, and competition concerns related to environmental claims and sustainability, with a particular focus on ‘greenwashing’.
‘Greenwashing’ is a term used to describe false or misleading environmental claims. Broadly speaking, it occurs when companies exaggerate the environmental benefits of their products to gain a competitive advantage.
With the prevalence of electric vehicle advertising across the automotive industry, the commencement of these proceedings brings home to automotive brands the need for caution to be taken to avoid greenwashing.
In the context of electric cars, care should be taken by advertisers in how they describe environmental benefits, particularly given the general impact of any vehicle on the environment, including over the whole life of that vehicle, which includes the manufacturing process and charging process.
By way of example, claims of “zero emissions” without acknowledging the emissions associated with the vehicle’s and battery’s production process or charging emissions should be avoided. Broad and unqualified claims should also be avoided.
In short, advertisers must ensure their environmental claims are true and accurate, have evidence to substantiate their environmental claims, not mislead by omitting important information, explain any qualifications in relation to their claims, and avoid visual elements which give the wrong impression. Images and visual elements including certain colours (e.g. green or blue), plants, or symbols associated with environmental connotations should be used with great care.
Our team at Baybridge specialises in automotive advertising and may assist automotive brands with their general advertising compliance and with any environmental claims they may wish to make in promoting their electric vehicle range.
Important Disclaimer: The information contained in this publication is general and introductory in nature only and is current as of the date of publication. It does not constitute legal advice and should not be relied upon as such. You should always obtain legal advice based on your specific circumstances before taking any action relating to matters covered by this publication.
