The Commerce Commission has begun two prosecutions against companies for making potentially misleading environmental claims about plastic bags.
It's yet to release the names of the companies as charges are still being finalised.
The Commission has also issued warnings to five companies about misleading green claims.
One of the companies to receive a warning, Fragrance Holdings, featured in our recent article on "natural" cosmetic claims. Fragrance Holdings markets Earths Organics skincare products. Despite their brand name, these products contain only tiny amounts of organic ingredients. The Commission warned Fragrance Holdings in May that its marketing is likely to breach the Fair Trading Act.
Rolling Hills Chicken Company has also been warned for making misleading "organic" claims. The company advertised its chicken as "organically farmed" but it's not a certified organic producer and would not be able to get certification using its current farming practices.
Other companies that have received warnings are:
- Holland Landscaping & Garden Services for using a "sustainable choice" logo. The Commission says the logo has the potential to mislead consumers into thinking the company has formal certification when this isn’t the case.
- Otis Elevator Company for representing its lift as the "only GREEN elevator in the market" and capable of reducing overall energy demand of a building "by up to 70%".
- Water Purification Systems for making false representations about pesticides and other contaminants in town water supplies.
More from consumer.org.nz
- Green product claims - our March 2010 report calling for a mandatory consumer information standard for "green" claims
- Natural cosmetics - our August 2010 article looking at "natural" and "organic" claims on cosmetics
- Fair Trading Act - a guide to the Act
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