Despite Australian consumer law prohibiting false or misleading advertising, online ads on platforms like YouTube often contain unsubstantiated claims, according to policy expert Kat George. A reader, a mechanical engineer, cited an ad claiming a cooling device would cool any room in 10 minutes using 96% less energy than traditional air conditioning, calling it 'absolute garbage'.
George explains that the Australian consumer law applies to all businesses offering goods and services in Australia, including online advertising. Claims must be 'true, accurate and based on reasonable grounds', and businesses must be able to prove their truthfulness. However, tackling misleading online ads is a 'sisyphean task' due to the vast and regenerative nature of the internet.
The Australian Competition and Consumer Commission (ACCC) conducted a sweep of greenwashing claims in late 2022, finding that 57% of 247 businesses reviewed made concerning claims online. As a result, greenwashing remains a priority for enforcement and education. Consumers are encouraged to report suspicious ads to the ACCC Infocentre on 1300 302 502, providing details of the advertisement, the business, and where it was seen.
While individual reports may not lead to immediate action, the ACCC uses consumer data to identify systemic issues and inform compliance activities. George advises consumers to trust their expertise and gut instincts when encountering dubious claims.
