Clorox Fined $8.25 Million for Misleading Ocean Plastic Claims

ACCC found Clorox misled buyers by claiming GLAD bags had 50 percent ocean plastic.

ACCC Chair Gina Cass-Gottlieb speaks to media during a press conference at the ACCC Office in Sydney, Australia, on June 8, 2022. AAP Image/Bianca De Marchi

Clorox Australia has been hit with an $8.25 million (US$5.2 million) penalty by the Federal Court for falsely advertising that its GLAD kitchen and garbage bags were made from 50 percent recycled ocean plastic.

In reality, the plastic used was not sourced from the ocean.

Instead, the bags were made with roughly 50 percent plastic waste gathered from inland communities in Indonesia lacking formal waste collection systems—some up to 50 kilometres from the nearest shoreline.

The remainder of the product was made from new plastic, along with additives like processing aids and dyes.

More than 2.2 million falsely labelled products were sold from June 2021 to July 2023. Clorox admitted to breaching consumer law and has accepted the court’s findings.

“Claims about environmental benefits matter to many consumers and may impact their purchasing behaviour,” Australian Competition and Consumer Commission (ACCC) Chair Gina Cass-Gottlieb said.

“When those claims are false or misleading, this is a serious breach of trust, as well as the Australian Consumer Law.”

Clorox ceased sales of the products in July 2023, shortly after the ACCC began its investigation.

The ACCC commenced legal proceedings against Clorox in April 2024.

Clorox told The Epoch Times that it takes its responsibility to accurately package and market its products seriously.

“While both the ACCC and the Court acknowledged that Glad did not set out to mislead consumers, we respect the outcome and view it as an opportunity to improve our practices and reaffirm our commitment to delivering products that reduce environmental impact and meet the changing needs of our customers,” the company said in a statement.

ACCC also noted that Clorox cooperated throughout the case, admitted wrongdoing, and jointly proposed penalties and orders with the ACCC.

Misleading ‘Green’ Branding

The Federal Court found that Clorox’s product packaging created a misleading impression of environmental credibility, with references to the ocean and the term “green” implying a stronger eco-connection than was true.

These elements were deemed significant in evaluating the company’s breach of consumer law.

The court also stressed the broader impact of such conduct, warning that misleading environmental claims erode public trust.

“Environmental product development is important,” the ruling noted, “but only if claims are truthful and verifiable.”

Corrective Action Ordered

In addition to the $8.25 million penalty, Clorox has been ordered to implement a compliance program under Australian Consumer Law, publish a corrective notice on its website, and contribute to the ACCC’s legal costs.

Cass-Gottlieb said the commission supports sustainable innovation but warned that greenwashing won’t be tolerated.

“Businesses must be clear and accurate when promoting environmentally friendly products,” she said. “We take these matters seriously and will act when claims mislead consumers.”