CONSUMER GOODS, GREEN MARKETING

Ms THOMPSON (Reynell) (14:22): Will the Minister for Consumer Affairs inform the house about what is being done to prevent South Australians from being misled about the environmental credentials of consumer products?

The Hon. J.M. RANKINE (Wright—Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Volunteers, Minister for Consumer Affairs, Minister Assisting in Early Childhood Development) (14:22): Our state government has been leading the way in a number of issues in relation to the impacts of climate change with fixed targets to reduce greenhouse gas emissions, along with a range of other very innovative measures. Prompted by the drought and numerous reports of global warming, awareness of environmental issues has never been higher in the minds of South Australians.

In response to growing community concern there has been a rapid rise in the green marketing of consumer goods. In the words of advertising and marketing, 'green is the new black'. The Office of Consumer and Business Affairs—

Members interjecting:

The SPEAKER: Order!

The Hon. J.M. RANKINE: Are you all still cranky? You have been so rude. When my boys became a little cranky and unruly, I used to give them a dose of Combantrin to get rid of their worms—and I think that is what members opposite need.

Mr Williams interjecting:

The Hon. J.M. RANKINE: Get some Combantrin and you will feel better.

Mr Williams interjecting:

The SPEAKER: Order, the member for MacKillop!

The Hon. J.M. RANKINE: The Office of Consumer and Business Affairs, along with the Australian Competition and Consumer Commission, is concerned at the rise of the so-called practice of green washing, which is the promotion of products as being eco-friendly without actually delivering on that promise.

Authorities here and overseas are increasingly recognising the emerging risk of consumers being exploited by unsubstantiated green claims and are acting to bring some integrity to the market, which in Australia is worth an estimated $12 billion to the economy. Manufacturers are being warned not to overstate their green credentials as it could put them at odds with fair trading and trade practices laws. When we see the amount of toilet paper, air fresheners, freezer bags, washing powders, detergents, cleaning products and so forth that are badged with the promised environmental benefits, the reality is that the green promise may be confined to the cardboard packaging used on the product and not the product itself.

It is now vital that traders ensure that environmental claims used on packaging, advertising and promotional activities do not breach the Fair Trading Act, which prohibits traders from making false or misleading representations aimed at unfairly luring their customers. The maximum penalty for those found in breach of the law is $100,000 for a body corporate, or $20,000 in any other case. The kinds of claims being made currently include statements about energy and water efficiency, environmental sustainability, and the impact on animals or waterways.

These are important issues to South Australians who want to be sure that the money they are spending is making a real difference. If the statements are untrue, it is a clear case of deception aimed at cashing in on consumers who are becoming increasingly aware and more conscious of doing the right thing for our environment. It is also important that the integrity of environmental claims is not compromised, so that manufacturers who are doing the right thing can genuinely compete with an honest advantage and other manufacturers can strive to improve their practices.

Earlier this year, the Office for Consumer and Business Affairs began officially tracking the number of green related complaints it was receiving and they will continue to monitor the situation. Around a third of complaints related to the use of ambiguous terms in describing products. People also complained about misleading advertising relating to the emission levels of vehicles and the biodegradability of products. Manufacturers wanting to claim their product is green in any way should be honest and truthful, outline the specific aspects of the product or the production process which is green, use straightforward language in any promotional material or labelling and explain the significance of the benefit and, most importantly, be able to prove it.

To help business understand their obligations when making environmental claims, the ACCC has produced a guide called 'Green Marketing and the Trade Practices Act' to inform businesses about their obligations when using these environmental claims.