Recyclable packaging claims: staying compliant with Australian Consumer Law

Why packaging claims are high-risk

Packaging is the most visible environmental claim most products carry. It's also the one consumers test in their own kitchens: a pack labelled "recyclable" that doesn't fit the kerbside system is the kind of mismatch the ACCC flagged repeatedly in its 2023 internet sweep, which found 57% of 247 businesses reviewed across eight sectors had made potentially misleading green claims.¹

The legal framework is the same as for any other environmental claim — the prohibitions on misleading or deceptive conduct (s 18) and false representations about goods (s 29) in Schedule 2 of the Competition and Consumer Act 2010 (Cth) — applied through the ACCC's December 2023 environmental claims guidance.²³

"Recyclable" is a claim about what happens after the sale

A claim that something is recyclable is, in practice, a claim that the average consumer can put it into a recycling stream and have it actually be recycled. The ACCC's guidance asks businesses to make sure environmental claims reflect real-world outcomes, not theoretical possibilities.³

Two facts make this harder than it sounds:

• Kerbside recycling is run by local councils, and what is accepted differs by council. The national Recycle Mate database is the most current single source.⁴
• Soft-plastic recycling at scale in Australia has been disrupted since the suspension of the REDcycle programme in November 2022. The Soft Plastics Taskforce (Coles, Woolworths and ALDI), with APCO, has been rolling out limited collection points; coverage and material acceptance are not the same as kerbside.⁵

The Australasian Recycling Label (ARL)

The ARL, administered by the Australian Packaging Covenant Organisation (APCO), is the on-pack labelling system that tells consumers, component-by-component, whether part of the pack is Recyclable, Conditionally Recyclable or Not Recyclable through kerbside collection.⁶

To use the ARL accurately:

• Run each component through APCO's Packaging Recyclability Evaluation Portal (PREP); only PREP-tested classifications can be displayed.⁶
• Show one ARL icon per separable component (e.g. bottle, lid, sleeve). A single "recyclable" tick across a multi-component pack is the most common drafting error.
• Where a component is Conditionally Recyclable, include the on-pack instruction APCO specifies (for example, "Rinse" or "Scrunch into a ball with other soft plastics").

Common drafting errors

"100% recyclable"

An unqualified "100% recyclable" claim on a multi-material pack is high risk: it implies the entire pack, including the lid, label and any window, is accepted in kerbside. The ACCC's principle 5 (avoid broad and unqualified claims) and principle 3 (don't omit important information) both apply.³

"Recyclable" on soft plastics

Calling a soft-plastic pack "recyclable" without telling the consumer where and how overstates what's currently possible at scale in Australia. Post-REDcycle, the safer wording references the specific take-back scheme the pack is enrolled in, or labels the pack as not recyclable in kerbside.⁵

"Made from recycled materials" mixed with "recyclable"

Recycled content and recyclability are different claims and should not be substituted for each other. If a pack contains 30% post-consumer recycled material, say "30% post-consumer recycled content"; that is a measurable, verifiable claim and maps cleanly onto principles 1 and 2 of the ACCC guidance.³

Generic green leaves and earth icons

Decorative green icons that look like trust marks are addressed by principle 7 of the ACCC guidance: visual elements should not give the wrong impression. If a pack displays a leaf inside a circle next to "eco" with no underlying certification, the regulator may treat the visual itself as misleading.³

What "good" packaging copy looks like

A compliant claim tends to do four things:

1. Names the component being talked about ("bottle", "label", "lid"), not the whole pack.
2. States the recyclability classification in the ARL framework — Recyclable, Conditionally Recyclable or Not Recyclable — with the action required (e.g. "Check locally").
3. Where a take-back scheme is required, names the scheme and links to a list of drop-off locations.
4. Separates recycled-content claims (with a percentage and a basis — post-consumer or pre-consumer) from recyclability claims.

A short pre-publish checklist

1. Every component of the pack has been PREP-tested in the last 24 months.
2. The ARL icon shown on-pack matches the PREP classification, per component.
3. Any soft-plastic recyclability claim names a current, operational take-back scheme and the materials it accepts.
4. Recycled-content figures cite a percentage and disclose whether the content is post-consumer or pre-consumer.
5. No decorative leaf, tick or earth icon on the pack implies third-party certification you don't hold.
6. Marketing copy on the website matches the on-pack ARL classification — no upgrades in the headline.

Related reading

See What is greenwashing? for the legal backdrop, the ACCC's eight principles, and our list of Australian enforcement examples.