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Clorox Australia Fined $8.25M for Misleading Green Claims on GLAD Bags

The company falsely marketed its garbage bags as containing 50% recycled ocean plastic and must now implement compliance measures and issue a corrective notice.

People load Clorox into their car in the Costco parking lot in New York State, in the Brooklyn borough of New York City, New York, U.S., March 2, 2020. REUTERS/Andrew Kelly/File Photo
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Overview

  • Clorox Australia was fined $8.25 million by the Federal Court for falsely claiming its GLAD kitchen and garbage bags were made from 50% recycled ocean plastic.
  • The recycled materials were actually sourced from Indonesian communities up to 50 kilometers from the shoreline, not directly from the ocean or sea.
  • The misleading claims occurred between June 2021 and July 2023, during which more than 2.2 million bags were sold at a premium price.
  • Clorox is required to establish an Australian Consumer Law compliance program, publish a corrective notice, and cover $200,000 of the ACCC's legal costs.
  • The company discontinued the product following the ACCC investigation and stated it would enhance its practices to ensure accurate environmental claims.