01-07-2025
ACCC alleges a US-owned sunscreen firm misled consumers by claiming popular Aussie brands were reef-friendly
The Australian Competition and Consumer Commission (ACCC) has taken the US based owner of the 'Banana Boat' and 'Hawaiian Tropics' to court, alleging false or misleading claims of being reef-friendly.
The ACCC alleges Edgewell Australia, which is owned by the US multinational Edgewell Personal Care, used the 'reef friendly' term on packaging relating to its Australian businesses, despite third party scientists claiming it was 'greenwashing'.
The Australian Securities and Investments Commission (ASIC) defines greenwashing as the potential for funds or products to overrepresent the extent to which their practices are environmentally friendly, sustainable or ethical.
The ACCC claimed the 'reef friendly' sticker, which included a picture of a piece of coral, was used between August 2020 and last December.
The regulator has alleged similar products in the United States removed the claims in 2020 but did not update its packaging in Australia
'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.
'We believe this conduct was widespread and risked potentially misleading many consumers. The sunscreen products were supplied throughout Australia over a period of four years, including in large stores and online websites,' Ms Lowe said.
Sky News Australia has reached out to Coles and Woolworths for comment as the ACCC alleged the products were sold in big stores as well as online. There is no suggestion that Coles or Woolworths were involved in, or aware of, Edgewell's alleged greenwashing.
We asked them whether they sold the products in store, and whether they had a procedure in place to comply with any court ruling relating to the ACCC action.
We did not hear back.
'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,' Ms Lowe said.
The court action comes as Australian businesses attempt to burnish their environmental credentials as Australia seeks to achieve net zero emissions by 2050.
