Can Your Brand Make Green Claims In NZ?

Putting a sustainability claim on your packaging, website or ads can feel like a smart way to show customers what your brand stands for.

But green claims are also an area where small wording choices can create real Fair Trading Act risk. A claim like eco-friendly, carbon neutral or 100% recyclable might sound simple, but you need to be able to back it up before it goes live.

The good news is that this doesn't have to stop you talking about the genuine work your business is doing. It just means your environmental claims need to be clear, accurate and supported by evidence.

What Counts As An Environmental Claim?

An environmental claim is any statement, image or overall impression that tells customers your product, service or business is better for the environment.

It can appear on:

• Product packaging and labels
• Your website and online store
• Social media posts and ads
• Email marketing
• Influencer content you approve or supply
• Pitch decks, brochures and wholesale catalogues
• In-store signage and point-of-sale material

Environmental claims can be direct, like made from 100% recycled plastic. They can also be indirect, such as using green leaves, earth imagery or nature-based wording that suggests a product has a lower environmental impact.

Common examples include:

• Sustainable: a broad claim that your product, materials or business practices can continue without harming the environment
• Eco-friendly: a broad claim that your product is good for, or not harmful to, the environment
• Recyclable: a claim that customers can recycle the item or packaging
• Compostable or biodegradable: a claim about how the product breaks down and under what conditions
• Carbon neutral or net zero: a claim about emissions measurement, reduction and offsets
• Plastic free: a claim that no plastic has been used in the product or packaging
• Natural or organic: a claim that can overlap with environmental, health and product composition claims

The key point is that the Commerce Commission and customers will look at the overall impression your marketing creates, not just the exact words you use.

Are Green Claims Regulated In New Zealand?

Yes, green claims are regulated in New Zealand mainly through the Fair Trading Act 1986, which applies when you're promoting goods or services in trade.

The Fair Trading Act prohibits misleading and deceptive conduct, false or misleading representations, and unsubstantiated representations. That means your business shouldn't make an environmental claim unless you have reasonable grounds for it at the time you make the claim.

This matters because a claim can be a problem even if you didn't mean to mislead anyone. If the overall impression is likely to mislead an ordinary customer, or if you can't show you had a reasonable basis for the claim, your business may be exposed.

The Commerce Commission can investigate and take enforcement action. For serious breaches, penalties under the Fair Trading Act can be up to $600,000 for a company and up to $200,000 for an individual for each offence.

Other rules can also matter depending on how and where you advertise. For example:

• The Advertising Standards Authority codes can apply to ads, including environmental and social responsibility claims.
• The Consumer Guarantees Act 1993 may be relevant if your product doesn't match what you've promised to consumers.
• Specific product or packaging rules may apply in your industry, especially for regulated products, imported goods or waste-related claims.
• If you're a larger climate reporting entity, separate climate-related disclosure rules may apply. Most small businesses won't fall into that category, but it's worth checking if you're part of a larger group or listed structure.

For most small businesses, the biggest day-to-day risk is still the Fair Trading Act. If you're making environmental claims, the question is usually: can you prove the claim, and will customers understand it in the way you intend?

What Makes An Environmental Claim Misleading?

An environmental claim can be misleading if it's false, too broad, missing key context or gives customers the wrong overall impression.

This is often called greenwashing, but you don't need to be trying to trick anyone for the law to be an issue. Sometimes the risk comes from using wording that's too vague for the evidence you actually have.

Broad Claims Can Be Risky

Words like sustainable, green, eco-friendly and planet positive can be hard to prove because they suggest a wide environmental benefit.

If your claim is based on one part of the product, say the bottle is made with recycled plastic, but the wording suggests the whole product is sustainable, customers may get the wrong impression.

A safer approach is usually to make the claim more specific. For example:

• Instead of eco-friendly packaging, say bottle made from 80% recycled plastic.
• Instead of zero waste product, say refill pouches reduce plastic packaging by 60% compared with our 500ml bottle.
• Instead of sustainable cotton, say cotton certified under [named certification], certificate current to [date].

Half-Truths Can Still Mislead

A claim can be technically accurate but still misleading if you leave out something customers need to know.

Say you run a skincare brand in Wellington and your website says your face cream jar is recyclable. If the jar is recyclable only if customers separate the lid, remove the pump and take it to a specialist facility that isn't available in many parts of New Zealand, that context matters.

In that situation, a clearer claim might explain exactly which parts are recyclable and where they can be recycled. Customers shouldn't have to guess what you mean.

Comparisons Need A Fair Baseline

Comparative claims like 30% less plastic, lower emissions or better for the planet need a clear comparison point.

You should be able to answer:

• Less than what?
• Measured over what period?
• Measured using what method?
• Does the comparison cover the full product, packaging or only one component?
• Is the comparison still current?

If the comparison is with your old packaging, say that. If it's with a market average, you need credible data for that average.

Can You Say Your Product Is Sustainable Or Eco-Friendly?

You can use words like sustainable or eco-friendly, but only if the claim is accurate, specific enough and supported by strong evidence.

These words aren't banned. The issue is that they're broad and customers may read them as covering the whole lifecycle of the product, from sourcing to manufacturing, transport, use and disposal.

If you only have evidence for one part of that lifecycle, your wording should make that clear.

For example, these claims are usually easier to support:

• Packaging made from 70% post-consumer recycled paper
• Refill bottle designed to be reused with our 1L refill pouch
• Printed with water-based inks
• Made using electricity from a certified renewable electricity contract at our Auckland facility

These claims usually need much more evidence and context:

• Good for the planet
• 100% sustainable
• Climate positive
• Earth safe
• Guilt free

If you want to use a broad brand statement, you can reduce risk by pairing it with specific, measurable claims. For example, instead of saying we're a sustainable fashion brand, you might say we're working to reduce textile waste by using certified organic cotton in our core range and offering a repair programme for selected garments.

That kind of wording is more honest and more useful for customers. It also gives your marketing team clearer guardrails.

What Evidence Do You Need Before You Publish A Claim?

You need enough reliable evidence to show you had reasonable grounds for the claim at the time you made it.

This is because the Fair Trading Act includes rules against unsubstantiated representations. In plain English, you shouldn't make a factual claim first and look for proof later.

Good evidence might include:

• Supplier certifications, product specifications and current audit documents
• Test reports from recognised laboratories
• Lifecycle assessment reports, where the claim is based on lifecycle impacts
• Carbon accounting reports and offset documentation
• Manufacturing specifications and bills of materials
• Written confirmation from suppliers about recycled content or material composition
• Evidence of recycling, composting or take-back availability in New Zealand
• Records showing how a percentage or comparison was calculated

Keep the evidence in a central place so your team can find it later. If the Commerce Commission asks questions, or if a retailer requests substantiation, you don't want to be hunting through old emails.

Check The Evidence Matches The Claim

The evidence should support the exact claim you're making.

If your supplier gives you a certificate for recycled content in one component, that doesn't prove the whole product is recycled. If a test report shows a material biodegrades in industrial conditions, that doesn't mean it will break down in a home compost bin or landfill.

This is where many green claims go wrong. The evidence exists, but the marketing claim stretches beyond it.

Keep Evidence Current

Environmental claims can become inaccurate over time. Suppliers change materials, certifications expire, packaging changes and recycling systems vary.

Set a review date for each key claim. For example, you might review packaging claims every 6 or 12 months, or whenever you change suppliers, packaging design or product composition.

If you're relying on a certification mark, check the licence terms. Many certification bodies have rules about how the logo can be used, where it can appear and what exact wording must accompany it.

How Should You Review Packaging, Websites And Ads?

You should review environmental claims before they go live using a simple legal and marketing checklist.

The goal isn't to make your marketing bland. It's to help your team say what you can genuinely prove, in a way customers can understand.

Step 1: List Every Green Claim

Start by capturing all environmental claims across your customer-facing material. Look for words, images, icons and implied claims.

Don't forget:

• Product names and range names
• Taglines and slogans
• Badges and icons
• Website banners
• Product descriptions
• Social media captions
• Influencer briefing notes
• Email subject lines
• Retailer product copy

Step 2: Ask What A Customer Would Think It Means

Read the claim from a customer's point of view. Would they think the claim applies to the whole product, only the packaging, only one ingredient or your whole business?

If the answer isn't obvious, make the wording clearer.

Step 3: Match Each Claim To Evidence

For each claim, note the evidence that supports it. If you can't find evidence, the claim should be removed, softened or changed.

A practical claims register might record:

• The exact claim
• Where it appears
• The evidence supporting it
• Who approved it
• The review date
• Any wording limits or disclaimers

Templates can be useful for getting started, but green claims often depend heavily on your product, supply chain and evidence. Documents and approval processes work best when they're tailored to the way your business actually markets products.

Step 4: Add Context Where Needed

Qualifiers can help, but they need to be close to the claim and easy to understand.

For example, if your packaging says compostable, you may need to explain whether that means home compostable or commercially compostable. If it requires specific conditions, say so clearly.

Fine print won't usually fix a headline claim that's misleading on its face. If the main claim gives the wrong impression, rewrite the main claim.

Step 5: Control What Others Say For You

If influencers, affiliates, distributors or retailers are promoting your products, make sure they use approved wording.

Your business can still face risk if someone makes a misleading environmental claim on your behalf or using materials you've supplied. Give partners clear claims guidance and keep records of what you've approved.

What Happens If A Green Claim Goes Wrong?

If a green claim goes wrong, your business may need to remove or correct the claim, deal with regulator attention, manage retailer concerns and rebuild customer trust.

The practical consequences can include:

• Changing packaging, ads or website copy at short notice
• Withdrawing marketing campaigns
• Responding to Commerce Commission questions
• Handling Advertising Standards Authority complaints
• Giving corrective statements or refunds in some situations
• Losing retailer or marketplace confidence
• Facing penalties if the conduct is serious enough

There can also be contract issues under a product supply agreement. For example, if you've promised a retailer that your product packaging is recyclable or certified, and that turns out to be wrong, you may have breached your supplier terms or customer contracts.

If you spot an issue, move quickly and calmly:

1. Pause the claim where you can, especially online ads and social posts.
2. Check the evidence and work out whether the claim is wrong, too broad or just unclear.
3. Correct the wording so it matches what you can prove.
4. Update partners such as retailers, agencies and influencers.
5. Keep records of the issue, your review and the changes you made.

If the issue is significant, get tailored advice before communicating with a regulator or making public statements. The right approach will depend on the claim, how long it has been used, how many customers saw it and what evidence you have.

Key Takeaways

• Environmental claims in NZ are mainly regulated under the Fair Trading Act 1986, and you need reasonable grounds for factual claims before they go live.
• Broad words like sustainable, eco-friendly and green carry more risk unless you explain exactly what you mean.
• Your evidence should match the exact claim, including any percentage, comparison, certification or disposal claim.
• Packaging, website copy, ads, influencer content and retailer listings should all be reviewed for the overall impression they create.
• A simple claims register and approval process can help your team market confidently while reducing greenwashing risk.
• If a claim may be wrong, pause it, check the evidence, correct the wording and get tailored advice if the risk is significant.

If you'd like help with reviewing your environmental claims, preparing marketing approval guidelines, checking supplier terms or drafting website terms for your products, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.