COSMETIC AND PERSONAL CARE GREENWASHING: WHY IT MATTERS

Greenwashing has become one of the biggest compliance issues facing the beauty and personal care industry. Regulators worldwide are increasing scrutiny, and cosmetics remain one of the most problematic categories for misleading environmental and sustainability claims.

In 2023, in an Australian first, ASIC launched proceedings against a superannuation firm for alleged greenwashing. They also issued $140,000 of infringement notices to others in response to greenwashing concerns.

ASIC has declared that action against greenwashing is one of their priorities and will be working alongside regulators such as the ACCC, which also listed greenwashing as a priority. 

The ACCC also announced that following an online sweep, 57% of companies reviewed made “concerning claims about their environmental credentials”. Of the 247 businesses, 30 were cosmetics and personal care brands – the worst performing sector with the highest proportion of concerning claims at 73%. The ACCC said they will be conducting further analysis of these issues and “will undertake enforcement, compliance, and education activities where appropriate”. 

For brands, this isn’t just a regulatory risk. Greenwashing erodes consumer trust, undermines genuine sustainability efforts, and can misrepresent the science behind formulations. With sustainability now a key driver of purchasing decisions, responsible communication is more important than ever.

Given these crackdowns and the increasing importance of sustainability and environmental impact to consumers, now is the time to make sure any relevant claims your brand makes are qualified and substantiated. We have a handful of regulatory and compliance experts we recommend, if you would like an introduction, please contact us.