NZ:Proliferating green claims have potential to mislead

Environmental claims could be a powerful marketing tool, Commission director of fair trading Adrian Sparrow said on Thursday .

"Consumers are increasingly aware of their own impact on the environment and may choose one product or service over another based on the green claims made on the label or in advertising," he said.

"Green claims are a new area of focus for the Commerce Commission because we see it as an emerging area of concern.

"We already have active investigations in this area and businesses would be well advised to read the guidelines and seek legal advice about any green marketing claims they are making."

The commission said the new guidelines encouraged businesses and marketers to be honest, to specify which part of a product or process a green claim was made about and to use language consumers could understand.

Businesses and marketers should also explain the significance of the green claim and ensure the claim could be substantiated.

Separate guidelines are to be produced for carbon neutral marketing.