The Commerce Commission has warned Kmart NZ Holdings Limited (Kmart) over alleged claims in its advertising that stated “100% sustainably sourced cotton.”
The claims in question were made starting August 4, 2023, and were removed on October 4, 2024.
Kmart acknowledged during the Commission’s investigation that its “Better Cotton” was blended with conventional cotton in the supply chain.
ComCom said this could potentially violate the Fair Trading Act.
“Kmart’s absolute claim of ‘100% sustainably sourced cotton’ implies a high level of certainty that we believe Kmart did not have,” Commerce Commission competition, fair trading, and credit general manager Vanessa Horne said.
“Kmart could therefore not say with certainty whether 100% of the cotton in its clothing was supplied by Better Cotton farmers or was sustainably sourced.”
“Consumers have a right to clear and accurate information, and greenwashing makes it virtually impossible for a consumer to identify if a product is genuinely sustainable,” Horne added.
She said businesses understand that consumers are increasingly mindful of environmental factors when making purchasing decisions and may choose to buy from one company over another based on their environmental claims.
“Unsubstantiated claims are unfair for businesses who put in the time and resource to make sure their environmental claims are legitimate.
“We are very supportive of businesses getting involved in sustainability initiatives, but as with any advertising, claims made must be accurate and be able to be backed up to avoid breaching the Fair Trading Act.”
“If you can’t back it up, don’t say it.”