The Federal Court of Australia has declared that claims that an Australian developed nappy was ‘100% biodegradable’ were false and misleading after Australian Competition and Consumer Commission legal action.
The biodegradability claims were made by Perth-based SeNevens International Ltd in connection with its Safeties Nature Nappy product.
SeNevens marketed its '100% biodegradable' Safeties Nature Nappy and nappy disposal bag in Western Australia from November 2006 before expanding to all Australian States and the ACT in March 2007. SeNevens withdrew the product from sale in April 2008 following the ACCC's investigation into its claims.
Claims that the whole of the nappy, including nappy disposal bags, were biodegradable were made on the product packaging, in promotional material and on SeNevens's website.
The Federal Court's Justice Marshall declared that the biodegradability claims were false and misleading because SeNevens's Safeties Nature Nappy product contained plastic components that are not capable of being broken down by the biological activity of living organisms.
Justice Marshall found that in making the claims SeNevens contravened sections 52 and 53 of the Trade Practices Act 1974 by engaging in misleading conduct about the the biodegradability of its Safeties Nature Nappy.
Justice Marshall imposed injunctions preventing SeNevens engaging in similar conduct in the future. The court also ordered that SeNevens publish a corrective advertisement on its website, and ordered the company to establish a trade practices compliance program. The court also ordered that SeNevens pay the ACCC's costs.
Related proceedings against Ms Charishma Seneviratne, the former director of the company, for allegedly being knowingly concerned in or party to the contravening conduct are continuing.
ACCC Chairman, Mr Graeme Samuel, noted SeNevens cooperation to conclude the proceedings against the company.
"This case will serve as a warning to those businesses looking to prey on the growing consumer preference for biodegradable products," Mr Samuel said. "If a business makes biodegradability claims then it must ensure the claims are supported by rigorous scientific evidence."
Consumer concerns about the veracity of green marketing claims have led the ACCC to develop Green Marketing and the Trade Practices Act, a publication providing guidance for consumers and business on environmental claims in advertising. This publication can be downloaded from the ACCC’s website.
For media inquiries to the ACCC Chairman, Mr Graeme Samuel, please call Ms Lin Enright, ACCC Media, on (02) 6243 1108 or 0414 613 520.
For general inquiries, please call the Infocentre: 1300 302 502.