ACCC Carbon Neutral Claims

The Australia Institute, a public policy think tank based in Canberra, Australia, alleged in a complaint that the Climate Active trademark program is misleading and deceptive under Australian Consumer Law and referred the program to the Australian Competition and Consumer Commission (ACCC) for investigation. The Climate Active program is a partnership between the Australian Government and Australian businesses that certifies businesses and organizations that have "proven that they are measuring, reducing and offsetting their emissions, with a net result of zero emissions". Climate Active state that "by supporting these organizations you are casting your vote for a better environment". The Australia Institute is concerned that Climate Active's claims about its certification program are potentially misleading, because: - "Carbon neutral organizations" under the program are not always required to reduce their emissions; - On the contrary, "carbon neutral organizations" can be contributing emissions in their operations or through their products or services; - "Carbon neutral products" are often not reducing a company's emissions but merely paying for offsets for its emissions; - The Climate Active trademarks do not make clear the details of how the program works or disclaimers in relation to the claims made. The results of complaints referred to the ACCC are not always made public.