Written by Associate, Alyce Evans, and Law Student, Indigo Bauchop
On 1 March 2025, the Australian Association of National Advertisers’ (AANA) new Environmental Claims Code (Code) came into force, setting new rigorous standards for environmental claims in advertising.
If you run a business, brand or retail store, or work in marketing, advertising, manufacturing or media… take note.
In this article, we break down the key rules under the Code, who and what it applies to, and what can happen if you don’t comply.
What is the AANA Environmental Claims Code?
Under the Code, any claim related to sustainability must be accurate and avoid ‘greenwashing’. ‘Greenwashing’ involves using false or misleading environmental claims (often in advertising).
Brands using terms like ‘eco-friendly’ or ‘sustainable’ will need to have verifiable evidence to support these claims. This is to ensure transparency of products and stricter compliance to environmental and advertising standards.
The Code’s aim is to increase public trust and confidence in consumer brands and prevent businesses from exaggerating their sustainability credentials to boost sales.
As consumers become increasingly mindful of their environmental impact, this Code helps them identify brands that genuinely embrace sustainability.
Who and What Does the Code Apply to?
The Code applies to all advertising that contains an environmental claim.
‘Advertising’ under the Code means: any advertising, marketing communication or material which is published or broadcast using any medium, or any activity which is undertaken by, or on behalf of an advertiser or marketer:
– Over which the advertiser or marketer has a reasonable degree of control; and
– That draws the attention of the public in a manner calculated to promote or oppose directly or indirectly a product, service, person, organisation or line of conduct.
It applies to any medium, including (but not limited to) print, internet, outdoor, radio, telecommunications, cinema, television, director to consumer media, as well as new and emerging technologies.
Finally, ‘advertisers’ may include any of the following, if they advertise a product as being sustainable or environmentally friendly:
– Brands and businesses.
– Marketing agencies.
– Retailers.
– Manufacturers.
– Media.
Under the Code, ‘advertisers’ are responsible for ensuring they have reasonable grounds for making environmental claims and that they do not mislead or misrepresent information to consumers.
What about labels and packaging for products?
The AANA has instructed that under the Code, the definition of ‘advertising’ does not include labels or packaging for products.
However, where images of product labels or packaging are included in an advertisement, and the labels or packaging contain environmental claims, then this will be considered an element of that advertisement, and the Code will apply.
Therefore, when including images of product labels or packaging in an advertisement, make sure that any visible environmental claims on the label or packaging are compliant with the Code.
What is an Environmental Claim?
Under the Code, an ‘environmental claim’ means: any message or representation (including text, images, graphics, audio or symbolic representation) that gives the impression that an industry, business, product or service:
– Has specific environmental benefits;
– Has a neutral or positive impact on the environment; or
– Is less harmful for the environment than alternatives.
Key Rules under the Code
The Code is supported by a Practice Note produced by the AANA. In this, the AANA sets out five core principles to ensure environmental claims in advertising remain compliant.
1. Claims must be truthful and factual
– Environmental claims in advertising must be truthful and factual. The overall impression created should not be false or inaccurate.
– The claims must not be misleading or deceptive.
2. Claims must be evidence-based
– Advertisers must have reasonable grounds for making the claim, based on credible, verifiable evidence.
– Advertisers must not misrepresent third party certifications, verifications or validations to support an environmental claim.
3. Claims must use clear and specific language
– Claims must use clear language and be specific.
– Vague, broad or unqualified claims should be avoided.
– Any limitations or conditions must be clearly communicated to consumers.
4. There must be genuine environmental benefits
– Advertisements must reflect a genuine benefit to the environment.
– Claims should not overstate or exaggerate the environmental benefit.
5. RE: Future environmental goals
– If a company makes a future-focused environmental claim, it must be based on reasonable grounds at the time the claim is made.
– ‘Reasonable grounds’ could include verifiable data, clear plans, milestones, and details outlining how the goals will be achieved.
What Happens if you Don’t Comply?
Failing to comply with the Code can have serious repercussions.
The AANA’s self-regulatory body, Ad Standards, can receive complaints regarding non-compliance with the Code.
The complaint may then be referred to the Ad Standards Community Panel, which will investigate the matter. If the complaint is upheld, the advertiser will be notified and asked to remove or change the relevant advertisement.
Application of the Australian Consumer Law
If there are potential breaches of the Australian Consumer Law (ACL), the Australian Competition and Consumer Commission (ACCC) can also intervene.
This may occur where an advertiser engages in ‘misleading or deceptive conduct’ or makes ‘false and misleading representations’, in relation to environmental claims.
Further information on the ACCC’s views on the ACL and environmental claims can be in here: ACCC – Making environmental Claims – A Guide for Businesses (Dec 2023).
Loss of Consumer Trust
Finally, if a brand, business, retailer or other entity breaches this Code (and/or the Australian Consumer Law), it is likely consumers will lose trust in that entity.
Final Thoughts
We are hopeful that the new Code will encourage all brands to genuinely adopt sustainable practices (rather than just claiming to do so). Even if businesses feel pressured to comply, the shift toward authentic sustainability claims is a positive for both consumers and the environment.
If you are still unsure why this matters—beyond ensuring the brands you support are truthful—just think about the polar bears!
Further Information
For more information on the various codes, regulations and laws that apply to advertising, check out our blogs:
– #Ad: The New Rules of Social Media Advertising That Influencers Need to Know
– ACCC Cracks Down on Social Media Influencers
– What is the TGA Code and What Does it Mean for Brands and Social Media Influencers?
If you would like legal advice or assistance complying with the AANA’s Codes or other advertising related codes, regulations or laws, please contact us through our online form or via email at hello@studiolegal.com.au.
Written by Associate, Alyce Evans, and Law Student, Indigo Bauchop
Published 11 March 2025.
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The information in this article is of a general nature. It does not constitute formal legal advice and should not be relied on as such. Please see the full disclaimer in our website terms. Please contact Studio Legal if you are seeking advice about a specific legal matter.