On 14 April 2025, the Federal Court (Court) ordered Clorox Australia Pty Limited (Clorox) to pay $8.25m in penalties following a successful ACCC greenwashing action arising from ‘50% ocean plastic’ representations on a range of GLAD kitchen tidy bag and garbage bag products.

Key takeaways

• The ACCC’s prosecution has resulted in the Court imposing significant penalties on Clorox for making misleading environmental claims under the Australian Consumer Law (ACL)
• This action follows similar successful enforcement by ASIC against greenwashing claims, and reinforces the ACCC’s focus on greenwashing as a key enforcement priority
• Businesses should ensure that all advertised environmental and other claims are accurate and do not create a misleading impression.

Summary of the Federal Court decision

In April 2024, the ACCC commenced proceedings against Clorox over environmental claims made on the packaging of a range of kitchen garbage and tidy bags sold between June 2021 and July 2023 (Relevant Period).

Clorox made prominent representations on the products with phrases like ‘GLAD to be GREEN’, ‘50% Ocean Plastic Recycled Bags’ and ‘50% Ocean Plastic Recycled Garbage Bags’, alongside graphic imagery of an ocean wave.

However, fine print disclaimers on the back of the packaging noted the products were actually ‘made using 50% ocean bound plastic that is collected from communities with no formal waste management system within 50km of the shore line’.

Subsequently, Clorox updated the ‘made from’ and ‘made using’ representations on the products to state that the products were ‘50% ocean bound plastic’.

Clorox admitted the product representations gave the impression that the bags were comprised from plastic waste collected from the ocean or sea, when in fact the recycled plastic components originated from plastic waste collected from Indonesian coastal communities and the balance of the products were comprised from non-recycled materials. Clorox further agreed with the ACCC:

• The ‘50% Ocean Plastic’ representation in the prominent heading of the products was not dispelled by the other information on the packaging, and
• While the ‘made from’ and ‘made using’ representations were updated to ‘50% ocean bound plastic’, this was not effective in preventing the packaging from conveying the misleading representation while the ‘50% Ocean Plastic’ headings remained in larger text and in a more prominent position.

The products were withdrawn from sale in mid-2023 when the ACCC commenced its investigation. Over 2.2 million units of the products had been sold during the Relevant Period, and the products were marketed at a higher price point than Clorox’s other comparable products.

The ACCC proceedings alleged Clorox had breached provisions of the ACL which prohibit:

• Misleading and deceptive conduct
• False or misleading representations about goods and services in relation to the claimed composition and environmental benefits of the products, and
• Misleading conduct as to the nature, manufacturing process and the characteristics of the products.

Clorox admitted to breaching the ACL and agreed to a resolution, including accepting an $8.25m penalty. In addition, the Court also ordered Clorox:

• Be restrained from making future similar representations unless those claims could be substantiated
• Establish and implement a compliance program for three years
• Publish a corrective notice on the GLAD Australia website and corresponding Facebook and Instagram accounts and maintain the notice for at least 90 days, and
• Contribute towards the ACCC’s legal costs.

Greenwashing in focus

This decision underscores the risk of making broad, unqualified environmental claims that can’t be objectively substantiated. It also highlights the inadequacy of using fine print disclaimers to correct prominent and inaccurate claims.

Regulatory scrutiny and enforcement action against greenwashing has increased in recent years. This decision follows the earlier enforceable undertaking by Moo Premium Foods to the ACCC for similar ‘ocean plastic’ claims, and ASIC’s successful prosecution of Vanguard Investments Australia in relation to claims in an ethical bond fund.

Greenwashing remains an ongoing ACCC enforcement priority for 2025-26. The ACCC’s Guidance on Making Environmental Claims lists key principles for businesses to consider in environmental product claims and advertising, including:

• Making accurate and truthful claims
• Having evidence to back up claims
• Not hiding or omitting important information
• Avoiding broad and unqualified and claims, and
• Ensuring visual elements do not give the wrong impression.

As always, businesses should ensure all product and services claims are accurate, truthful and can be substantiated.

Further information / assistance regarding the issues raised in this article is available from the author, Tina van Epen, Partner and Yasmin Box, Lawyer or your usual contact at Moray & Agnew.