Green-claims rule for businesses narrowed: 'internationally recognized methodology' standard removed, private complaints blocked

Plain-language summary · AI-assisted · not legal advice

The amendment makes two connected changes to the Competition Act's environmental claims provisions. First, the substantiation standard for business-level environmental representations (such as net-zero or sustainability claims about a company or its activities) has been softened: the previous requirement that claims be backed by 'internationally recognized methodology' has been deleted, leaving only a general 'adequate and proper substantiation' standard. Second, a new carve-out means private parties who obtain leave from the Competition Tribunal cannot use this provision to launch reviewable-conduct complaints — only the Commissioner of Competition can pursue these business-level green-claims cases going forward. Businesses making environmental claims about their overall operations face a less prescriptive evidentiary benchmark, but those claims remain reviewable by the Commissioner. Compliance teams should review existing environmental messaging to confirm it still meets the (now less defined) substantiation standard, and should note that competitor or consumer-driven Tribunal applications on this ground are no longer available.

Who this affects: businesses making environmental or sustainability claims · marketing and compliance teams · competitors seeking to challenge green claims · the Commissioner of Competition