The commission said the national retailer might have breached the Fair Trading Act in making unsubstantiated claims in its “100% sustainably sourced cotton” advertising.
Commission general manager Vanessa Horne said greenwashing was a real concern, as well-intentioned consumers were led to believe products were more environmentally friendly than they actually were.
“Consumers have a right to clear and accurate information, and greenwashing makes it virtually impossible for a consumer to identify if a product is genuinely sustainable,” Horne said.
“Kmart’s absolute claim of ‘100 percent sustainably sourced cotton’ implies a high level of certainty that we believe Kmart did not have.”
The commission said Kmart admitted its “Better Cotton” was mixed with conventional cotton in the supply chain.
“Kmart could therefore not say with certainty whether 100 percent of the cotton in its clothing was supplied by Better Cotton farmers or was sustainably sourced.”
Horne said consumers increasingly considered the environment when buying goods or services.
“Unsubstantiated claims are unfair for businesses who put in the time and resource to make sure their environmental claims are legitimate,” she said.
“We are very supportive of businesses getting involved in sustainability initiatives, but as with any advertising, claims made must be accurate and be able to be backed up to avoid breaching the Fair Trading Act.
“Our message to businesses is simple: if you can’t back it up, don’t say it.”
The commission was inviting consumers to pass on their concerns about potentially misleading claims on its website.
The 100 percent sustainable cotton claims were made from August 4, 2023 and removed on October 4, 2024.
The commission said legal action remained available to the commission if the conduct was repeated.
Kmart has been asked for comment.
