Kmart NZ Warned Over 'Greenwashing' Cotton Claims by Regulator
The Commerce Commission has warned Kmart NZ Holdings Limited (Kmart) about unjustified claims in its "100% sustainably sourced cotton" advertising.
The 100% sustainable cotton claims were made on August 4, 2023, then deleted on October 4, 2024.
During the Commission's examination, Kmart confirmed that "Better Cotton" was mingled with normal cotton in the supply chain.
The Commission argued that Kmart's behavior violated the Fair Trading Act and issued a warning notice.
"Kmart's absolute claim of '100% sustainably sourced cotton' implies a high level of certainty that we believe Kmart did not have," said Vanessa Horne, competition, fair trade, and credit general manager at the Commerce Commission. Commission.
"Kmart could therefore not say with certainty whether 100% of the cotton in its clothing was supplied by Better Cotton farmers or was sustainably sourced," added Mrs. Smith.
According to Horne, greenwashing is a worry for well-intentioned people who are misled into believing that things are more ecologically beneficial than they are.
"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 told CNN.
"Businesses understand that consumers are more concerned about the environment when purchasing goods or services and may be swayed to choose one firm over another based on their environmental claims.
"Unsubstantiated claims are unfair to firms that have invested time and resources to ensure that their environmental claims are legitimate.
"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."
She explained that the lesson was straightforward: "If you can't back it up, don't say it."
After the Commission raised the concern, Kmart withdrew the "100% sustainably sourced cotton" claim from its New Zealand website.
Kmart has also stated that it will continue to provide regular compliance training to its employees in consumer and competition law.