Question 1

What is greenwashing under Australian law?

Accepted Answer

Greenwashing is the practice of making environmental or sustainability claims that are misleading, unsubstantiated, or overstated. It is captured by the existing prohibition on misleading or deceptive conduct in section 18 of the Australian Consumer Law (ACL), and the false-representations provisions in sections 29 and 33 — it is not a separate offence with its own statute.

Question 2

What is the maximum penalty for greenwashing in Australia?

Accepted Answer

Since November 2022, the maximum penalty per contravention of the ACL by a body corporate is the greater of $50 million, three times the value of any benefit obtained from the contravention, or 30% of adjusted turnover during the period of the contravention. The largest greenwashing penalty to date is $12.9 million, imposed on Vanguard Investments Australia in September 2024.

Question 3

Does the ACCC really investigate small businesses?

Accepted Answer

Yes. The ACCC's 2022 internet sweep reviewed 247 Australian businesses across eight industries and found that 57% had made concerning environmental claims. The majority of the businesses reviewed were small to medium businesses, not large corporations. Greenwashing has been an ACCC compliance and enforcement priority every year from 2022–23 through 2025–26.

Question 4

Is one environmental claim enough to be at risk?

Accepted Answer

Yes. The ACCC does not require a pattern of conduct to investigate. A single claim that cannot be substantiated, or that gives a misleading overall impression, is sufficient grounds for scrutiny under the Australian Consumer Law.

Question 5

Does the ACCC need to prove I intended to mislead?

Accepted Answer

No. Section 18 of the ACL is a strict-liability provision. Conduct that is 'likely to mislead or deceive' can breach the law even if the business honestly believed the claim was accurate. Intent is relevant to penalty, not to liability.

Question 6

What are the eight ACCC principles?

Accepted Answer

Make accurate and truthful claims; have evidence to back up your claims; don't hide or omit important information; explain any conditions or qualifications; avoid broad and unqualified claims; use clear and easy-to-understand language; ensure visual elements don't give the wrong impression; and be direct and open about your sustainability transition. Released by the ACCC on 12 December 2023.

Question 7

Is a Sprout Check assessment legal advice?

Accepted Answer

No. A Sprout Check assessment is professional guidance based on the ACCC's publicly available December 2023 guidance and the Australian Consumer Law. It is not legal advice, does not create a lawyer–client relationship, and is not a substitute for a qualified solicitor where one is needed.

Question 8

What does the assessment actually do?

Accepted Answer

We review the environmental and sustainability claims we identify on your publicly accessible website pages against the ACCC's eight principles and recent enforcement patterns. We deliver a plain-language PDF report identifying each flagged claim, why it may attract scrutiny, and a suggested rewrite for each one.

Question 9

How is the report delivered and how long does it take?

Accepted Answer

As a PDF, by email. The Starter assessment (homepage only) is delivered within 3 business days. The Full website assessment is delivered within 5 business days.

Question 10

What's the difference between the $249 Starter and the $649 Full assessment?

Accepted Answer

The $249 Starter assessment reviews your homepage only — the single most visible page on your site. The $649 Full assessment reviews every publicly accessible page on your site that contains environmental or sustainability claims (typically product pages, About, sustainability/impact pages, and footer content).

Question 11

Do you cover social media, advertising or product packaging?

Accepted Answer

No. The assessment covers your website only. Social media profiles, paid advertising, and physical packaging are out of scope. If you need a broader review, email hello@sproutcheck.com.au to discuss.

Question 12

What if you find a serious problem on my site?

Accepted Answer

If your report identifies any high-risk claims, we will say so explicitly and recommend that you seek qualified legal advice before making changes to your website. We will not attempt to handle that situation ourselves — that's the line between guidance and legal counsel.

Question 13

What do I need to provide to start?

Accepted Answer

Your website URL and the email address you want the report sent to. No login access required. The assessment looks at publicly accessible pages only.

Question 14

Can the report be used as evidence of compliance?

Accepted Answer

No. The report identifies risks against publicly available regulatory guidance — it does not certify or guarantee that your website complies with the Australian Consumer Law or any other legislation. Formal compliance sign-off requires a qualified solicitor.

Greenwashing & ACCC compliance — your questions answered

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