Environmental claims about a range of plastic kitchen, garbage and freezer bags have been found to be misleading by the Federal Court, Melbourne.
Justice Crennan has made orders, by consent, in the Australian Competition and Consumer Commission's proceedings against Lloyd Brooks Pty Ltd for alleged breaches of the Trade Practices Act 1974.
In March this year the ACCC alleged misleading and deceptive conduct by Lloyd Brooks about claims of environmental benefits for its range of Earthstrength plastic kitchen, garbage and freezer bags.
Lloyd Brooks had claimed on packaging that:
46,000 pieces of plastic float in every square mile of ocean, this won't be one of them
even if this bag isn't thrown in the bin it won't end up as litter
this bag won't contribute to the landfill problem. It will make it disappear.
Additionally, Lloyd Brooks claimed on its website that its Earthstrength bags would "compost just like kraft paper bags, sticks and twigs, yard trimmings and food scraps which are quickly broken down".
Lloyd Brooks also stated that when composted its bags would biodegrade in 28 days.
The Earthstrength products, which were supplied nationally to retailers throughout Australia, including major supermarkets, claimed the environmental benefits were due to the tapioca starch used to make the bags. Lloyd Brooks could not substantiate these claims.
Justice Crennan declared the claims contravened the Trade Practices Act 1974. Specifically, she declared that the company had engaged in false or misleading conduct or conduct likely to mislead or deceive, had misrepresented the benefits and performance characteristics of the Earthstrength bags and had mislead the public in relation to the nature and characteristics of the Earthstrength bags.
She made orders including:
an injunction restraining the company for a period of three years from supplying Earthstrength bags in their current packaging or promoting that the bags biodegrade, disintegrate or will be of benefit to the environment unless it has independent scientific evidence to support such claims
a direction requiring the company establish a trade practices compliance program that it is consistent with the Australian Standard on Compliance Programs
an order that the company contribute to the ACCC's costs.
"Consumers are becoming increasingly conscious of environmental issues in their every day lives", ACCC Chairman, Mr Graeme Samuel, said today. "Environmental benefits figure highly in the mind of consumers and may influence their purchasing decision.
"Firms which make environmental or 'green' claims should ensure these claims are scientifically sound and appropriately substantiated as consumers are entitled to rely on and expect these claims to be truthful.
"Firms can expect swift action against them by the ACCC if claims do not meet these standards".
