Clorox Australia, the company behind GLAD garbage and kitchen bags, has been fined $8.25 million after the Federal Court found it misled consumers about its environmental claims.
As previously reported on PKN, the ACCC instituted proceedings in the Federal Court against Clorox Australia in April 2024.
Between June 2021 and July 2023, more than 2.2 million GLAD to be GREEN ‘50% Ocean Plastic Recycled’ kitchen and garbage bags were sold in Australia. The packaging stated the bags were made from at least 50 per cent recycled plastic waste collected from the ocean or sea. In fact, the plastic was collected from communities in Indonesia without formal waste management systems, located up to 50 kilometres from a shoreline.
The court determined this amounted to greenwashing, as the packaging’s references to “ocean plastic” and use of wave imagery misled consumers. Judge Penelope Neskovcin noted that the claims deprived customers of the ability to make informed purchasing decisions.
Clorox admitted the claims were misleading and cooperated with the Australian Competition and Consumer Commission (ACCC) throughout the investigation. The company stopped supplying the products in July 2023.
The ACCC stated Clorox failed to adequately consider how consumers would interpret “ocean plastic”.
“Claims about environmental benefits matter to many consumers and may impact their purchasing behaviour,” said ACCC chair Gina Cass-Gottlieb. “When those claims are false or misleading, this is a serious breach of trust, as well as the Australian Consumer Law.”
Clorox was also ordered to contribute $200,000 towards the ACCC’s legal costs, publish a corrective notice on its website, and implement an Australian Consumer Law compliance program.
A spokesperson for Clorox said, “We respect this outcome and see this as an opportunity to further enhance our practices and reaffirm our commitment to offering products that help reduce environmental impact and meet consumers’ evolving needs.”
