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How the ACCC supports Green Business

How the ACCC supports Green Business

The importance of the increasingly tight laws around green claims for both consumers and vendors are extremely helpful for everyone, especially where supply chains are variable

When you go to a market and see a farmer or re-seller with produce, claiming it is 'chemical free' or 'organic' or 'fair trade', how do you know it really is? Certified or self declared, by law, any claims like these have to actually be true. It is also required that sellers know their responsibilities at law and to make sure they tell the truth - either directly or indirectly (eg no omission).

Do you need to be certified by an authority to make claims like organic, palm oil free, vegan etc?

The short answer is that you don't - there is no legal requirement for a seller to seek formal 3rd party accreditations for proof of things like 'chemical free', natural, 'organic' or 'fair trade' etc. But neither can you make the claim without having a very clear understanding of what you are claiming. (Making a claim that you do not understand is not a defensible argument for making a false claim.)

The reality of course is that most green businesses are aware of the formal certification requirements and use them as a guide to ensure they are compliant. Many micro businesses can't afford the cost of formal certification and not having it also helps keep their product costs down for consumers. Some sellers simply don't agree with the Accreditors framework and develop their own.

The ACCC (Australian Competition & Consumer Commission) have published a guide to Green Marketing and the Australian Consumer Law which anyone can download - business or consumer.

Formal Certification or Self Declaration

Given the many governing laws and extensive advice from the ACCC, Ekko Score treats Formal Certifications or Self Declarations the same. With the protection of consumer law, there is every reason to accept the word of a business who claims a certification, even if it isn't a formal certification. 

Organic example

Many body care products contain ingredients that are both organic and not organic. In the example of these Toothpaste Tablets, the trader is declaring that around 40% of the product mix is organic. Even if some (or all) of these ingredients are certified, the overall product itself cannot be formally certified, so it makes sense for them to self declare for the parts that are. 

To assist consumers ekko.world asks all traders to list their products ingredients and you will see that most will point out the products that are organic.

Australian Components

Even where products are formally accredited, the speed of change and the complexities of global supply chains make it difficult to consistently supply and maintain high quality.

The law does specifically state that it is a vendor's responsibility to ensure supply chains suppliers are what they say they are. An example of this is from Biome Stores in Brisbane, who sell Men's Shave Soap supplied through wholesaler, Dindi Naturals. 

Dindi and Biome's main focus is using ingredients that are pure, but also Palm Oil Free and as such Dindi says that they regularly have to switch suppliers for quality and the tricky job of making sure that we can guarantee all our ingredients are palm oil free/cruelty free and of the highest quality.

"WE ALWAYS AIM TO PURCHASE AUSTRALIAN INGREDIENTS WHERE POSSIBLE, HOWEVER AS YOU CAN IMAGINE WITH THE RANGE OF LUXURY INGREDIENTS WE NEED TO SOURCE THIS IS OFTEN NOT POSSIBLE."  

Dindi estimate that their current Australian ingredients in Biome Shave Soaps to be around 35% Australian and as a minimum amount, they can't claim Australian Components. They can however Self Declare Vegan, Palm Oil Free and No Exploitation as well as Australian Design and Ownership. 

Some declarations have no formal certifications


Pesticide Free is an important declaration that a business might make, especially on food and a great example of an additive consumers would want to know about. There actually isn't a specific formal certification for Chemical Free produce for instance, but it's definitely a legitimate claim to make - and an important one. 

 



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