Australians are often being misled when they try to make sustainable electrical appliance choices, and consumer law isn’t doing enough to protect them.
Erin Turner, the CEO of the Consumer Policy Research Centre (CPRC), told the SwitchedOn Australia podcast, vague green claims are everywhere, making it hard for people to know whether they’re actually making an environmentally responsible choice.
“We know from our research so far that two out of five major appliances had what we call vague green claims,” says Turner. “A little graphic design treatment can make it look like a trust mark. That’s not a trust mark. It’s designed to look like a trust mark, but it means nothing.”
The CPRC has been conducting a study into what information people actually need when purchasing major appliances.
Through mystery shopping and focus groups, they found that consumers overwhelmingly want to make environmentally responsible choices, but the information they’re being fed is confusing and misleading.
Whilst 96% of people said they use the energy star ratings scheme, which is backed by science and quality, comparable information, to make their purchases, 80% said they also use vague green claims as part of their decision making.
“They don’t have the information they most need to make their decisions, particularly about how long a product will last and how easy it will be to repair once it breaks.”
Consumers can also be easily tricked by meaningless eco-labels, vague sustainability claims, and marketing distractions.
“There was one claim we looked at from an appliance company that said it would plant a tree for every purchase made,” Turner says. “It’s a distraction. It’s not helpful. But this is the information that’s in front of people.”
And while Australian Consumer Law prevents companies from outright lying, it’s not strong enough to stop greenwashing.
“Greenwashing is a bit more insidious,” Turner explains. “These claims that a product is eco or that there’s a green future at home, they’re not necessarily incorrect, so it’s hard for regulators to crack down on them. Instead, they’re unhelpful.”
Unlike Australia, the European Union has already cracked down on greenwashing, prohibiting companies from using unverified generic environmental assertions such as “environmentally friendly,” and forcing them to back up any sustainability claims with actual evidence.
France has even introduced a repairability index, making it easy for consumers to compare how long appliances will last and whether they can be repaired.
“That’s exactly what we need to ensure durability and repairability,” Turner says. “If we’re asking everyone to electrify their homes, it’s not a good outcome if, in five years, all the products they’ve purchased for that electrification point have to be scrapped.”
Turner believes the Australian government needs to step up. “We need a federal government to commit to a right to repair,” she says. “We’re missing a key part of our consumer law protection framework.”
The ACCC has started tackling greenwashing, but without stronger consumer laws, the problem will persist.
“We’re missing a key part of our consumer law protection framework – a ban on unfair trading practices,” Turner explains. “A lot of comparable countries aren’t allowed to misuse their power in unhelpful ways that really take advantage of people. An ambitious new federal government could do it relatively quickly.”
Until then, Turner offers some blunt advice to consumers: “Ignore the green fluff. If a company is making big statements about being eco and sustainable, if they’re not backing that up with detail, try not to consider it. It’s as likely to be a marketing tactic as it is meaningful direct intervention.”
You can hear the full interview with Erin Turner on the SwitchedOn podcast.
Anne Delaney is the host of the SwitchedOn podcast and our Electrification Editor, She has had a successful career in journalism (the ABC and SBS), as a documentary film maker, and as an artist and sculptor.
