Popular sunscreen brands Banana Boat and Hawaiian Tropic sued over ‘reef friendly' claims

7NEWS

a day ago

Two of Australia's biggest sunscreen brands are under fire, accused of misleading the public with claims their products were 'reef friendly'.
The Australian Competition and Consumer Commission (ACCC) has taken aim at Edgewell Personal Care Australia and its US-based parent company, Edgewell Personal Care Company (Edgewell PCC), accusing them of making false or misleading environmental claims over a four-year period.
'We allege that Edgewell engaged in greenwashing by making claims about the environmental benefits of Hawaiian Tropic and Banana Boat sunscreens that it had no reasonable or scientific basis to make,' ACCC Deputy Chair Catriona Lowe said.
The ACCC alleges Edgewell marketed more than 90 sunscreen products as 'reef friendly' between August 2020 and December 2024 across packaging, websites, social media, and catalogues despite including chemicals known or suspected to harm reefs, coral, and marine life.
Some of the products featured a logo containing the words 'reef friendly'' alongside an image of a coral, ACCC said.
Edgewell's claim its sunscreens were environmentally safe was based on the absence of two chemicals named oxybenzone and octinoxate.
Both are common chemical UV filters found in many sunscreens and other personal care products.
They are used to absorb ultraviolet (UV) radiation and protect the skin from sun damage.
Several countries, including the US state of Hawaii, have banned them due to concerns over their impact on health and the environment, particularly on coral reefs.
Oxybenzone is proven to inhibit coral reproduction and can reduce testosterone levels in men.
The chemical lingers in the body and has been found in amniotic fluid, urine, and blood, experts said.
It has also been found in the breast milk of both human and dolphin mothers.
While the absence of oxybenzone and octinoxate is positive due to their known harmful effects, the ACCC alleges the products still contained other chemicals such as octocrylene, homosalate, 4-methylbenzylidene camphor, also known as 4-MBC or enzacamene, and avobenzone which can also cause harm to reefs and marine life.
The watchdog said, the company was aware of studies and literature warning of the potential environmental impacts of these chemicals, but failed to commission any of their own testing.
'Many consumers consider environmental factors when purchasing products,' Lowe said.
'By engaging in this alleged greenwashing, we say Edgewell deprived consumers of the ability to make an informed decision and may have prevented them from purchasing a different brand of sunscreen that did not contain chemicals which risked causing harm to reefs.
'We believe this conduct was widespread and risked potentially misleading a large number of consumers.
'The sunscreen products were supplied throughout Australia over a period of four years, including in large stores and online websites.'
Marketing continued in Australia despite proven risks
The ACCC further alleges Edgewell PCC removed the 'reef friendly' claims from its US sunscreen products as early as 2020 due to mounting scientific and regulatory pressure, yet allowed the same marketing to continue in Australia until December 2024.
This could raise questions about whether Australian consumers were treated with the same level of transparency.
The watchdog is now seeking penalties, declarations, injunctions, costs and other orders from the Federal Court.
'Businesses should not shy away from promoting the environmental credentials of their products, but they must be able to substantiate any claims, for example through reputable third-party certification or reliable scientific reports,' Lowe said.
Edgewell PCC is one of the world's largest personal care companies and is listed on the New York Stock Exchange.
Its Australian arm supplies Hawaiian Tropic and Banana Boat sunscreens across the country.
The court action comes after ACCC guidance issued in 2023 warning businesses against vague or unproven environmental claims as part of a wider crackdown on greenwashing.
It follows consumer group Choice testing 20 sunscreens with SPF 50 or 50+ labels and finding only four met the standards.