The Australian Competition and Consumer Commission (ACCC) has initiated proceedings in the Federal Court against the manufacturer of GLAD-branded kitchen and garbage bags, Clorox Australia, for allegedly making false environmental claims that breach Australian Consumer Law.

The ACCC alleges that Clorox made false or misleading representations that its GLAD Kitchen Tidy Bags and Garbage Bags were comprised of 50 per cent recycled 'ocean plastic' collected from an ocean or sea, which was not the case.

The ACCC alleges that these GLAD kitchen and garbage bags were instead partly made from plastic that was collected from communities in Indonesia up to 50 kilometres from a shoreline, and not from the ocean or sea.

"We are concerned that, by its alleged conduct, Clorox deprived consumers of the opportunity to make informed purchasing decisions, and may have put other businesses making genuine environmental claims at an unfair disadvantage," said ACCC Chair Gina Cass-Gottlieb.

Both or the relevant products were reportedly withdrawn from supply to retailers from July 2023. The ACCC is seeking declarations, penalties, injunctions, an order to implement a compliance program, corrective notices, costs and other orders.

"This action reflects our enforcement priority to take action against businesses making false or misleading environmental claims. Increasingly consumers choose the products they buy based on their environmental impact, and in doing so they must be able to rely on the environmental claims made by businesses being accurate," Cass-Gottlieb concluded.

It comes after the ACCC accepted a court-enforceable undertaking from yoghurt manufacturer MOO Premium Foods Pty Ltd in November 2023, following an investigation into MOO's '100% ocean plastic' representations.

In December 2023, the ACCC released its guidance on making environmental claims for businesses, which explains businesses' obligations under the Australian Consumer Law when they make environmental and sustainability claims.