In this environment conscious era, being seen to be clean and green can be an important marketing issue for your business. Are you aware though of the need to comply with the Fair Trading Act 1986 when it comes to the claims you make about your green status? The New Zealand Commerce Commission has issued guidelines on green marketing to help those making green marketing claims.
What is the purpose of voluntary adminstration?How does the Fair Trading Act 1986 affect marketing?
The Fair Trading Act 1986 contains a number of restrictions on marketing.
Sections 9 to 12 of the Act contain broad prohibitions against misleading and deceptive conduct. You must not engage in conduct that is misleading or deceptive, nor that is likely to mislead or deceive a reasonable section of the public.
In addition other sections of the Act contain quite specific restrictions on making false or misleading representations about various aspects of your goods or services. For example, you must not make a false or misleading representation that goods are of a particular kind, standard, quality, grade, quantity, composition, style, or model, or have had a particular history or particular previous use. You must not make a false or misleading representation that goods or services have any particular sponsorship, approval, endorsement.
How does the Fair Trading Act 1986 affect green marketing?
In relation to green marketing, the restrictions in the Fair Trading Act 1986 mean that you need to think carefully about using certain phrases in your marketing. The New Zealand Commerce Commission guidelines comment in particular on the use of words like ‘green,’ environmentally friendly,’ environmentally safe,’ ‘energy efficient,’ ‘recyclable,’ ‘recycled,’ ‘carbon neutral,’ ‘renewable,’ or ‘green energy.’
What can happen if I breach the Fair Trading Act 1986?
If you breach the Fair Trading Act 1986 and it causes someone loss. That person can sue you under the Act. In addition, the Commerce Commission can take criminal or civil action for certain breaches of the Act. Criminal proceedings can result in fines of up to $60,000.00 per offence for an individual and $200,000.00 for a company.
If you wish to use green marketing for your business, we recommend you consult Parry Field Lawyers for legal advice. Further information about the Commerce Commission guidelines can also be found on the Commission’s website.
For assistance with commercial matters contact Tim Rankin or Kris Morrison (348-8480) at Parry Field Lawyers today.
The information contained in this outline is of a general nature, should only be used as a guide and does not amount to legal advice. It should not be used or relied upon as a substitute for detailed advice or as a basis for formulating decisions. Special considerations apply to individual fact situations.
