When ‘Ocean Bound’ claims sink – ACCC agrees to $8.25 million penalty against Clorox for alleged greenwashing practices

Though ASIC dominated the headlines last year with the successful penalties it obtained for greenwashing (see here for more), the ACCC has joined the party in 2025, having agreed to a civil penalty of $8.25 million against Clorox Australia (Clorox) over the composition of its ‘50% Ocean Bound Plastic Recycled Bags’.

Background

In April 2024, the ACCC brought its first civil penalty proceedings for greenwashing action against Clorox. The ACCC alleged that various representations made by Clorox as to their recycling bags being made with “50% Ocean Plastic” or “50% Ocean Bound Plastic” were false or misleading. Such representations included the products’ visual packaging, including use of the words ‘GLAD to be GREEN’ on a green background.

The ACCC alleged that, in fact, the products were comprised of resin up to approximately 50% of which was derived from recycled plastic that had been collected from communities situated up to 50 kilometres of the ocean or sea.

Penalty

At a hearing held on 7 February 2025, the Court heard that the parties agreed to the penalty of $8.25 million. The imposition of the penalty is subject to Court approval.

Takeaways

The Clorox case demonstrates the ACCC’s commitment to tackle greenwashing, first listed as one of its enforcement priorities in 2022.

Having releasing guidance on its expectations for businesses making environmental claims in December 2023 (see here), we expect that the regulator will continue its focus on holding businesses to this standard, through its investigative and enforcement powers.

Assuming the penalty is approved by the Court, the Clorox case serves as an important reminder to businesses that greenwashing practices can carry severe financial consequences.

To mitigate this risk, businesses should ensure that any environmental or sustainability claims they make are able to be supported by fact. Should your business require advice on how to mitigate these risks and to ensure compliance with greenwashing regulation, please reach out our experts listed in this article.