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Saab green marketing was misleading

In Australian Competition and Consumer Commission v GM Holden Ltd (ACN 006 893 232) [2008] FCA 1428, the Federal Court has declared that GM Holden Ltd made false and misleading claims in its "Grrrrrreen" campaign which promoted the environmentally friendly nature of its Saab range of vehicles.

Between 27 July and 1 September 2007, GM Holden, trading as Saab Australia, published newspaper and magazine advertisements across Australia promoting the Saab range of motor vehicles. The advertisements, under the headline statement "Grrrrrreen", contained the words and phrases, "Grrrrrreen", "Every Saab is green. With carbon emissions neutral across the entire Saab range" and "Shift to Neutral".

In the advertisements GM Holden represented that it had taken measures so that the carbon dioxide emissions from any Saab motor vehicle would be neutral over the life of that motor vehicle.

In the same advertisements, GM Holden also represented that in the first year following the purchase of a Saab motor vehicle, GM Holden would plant, on behalf of the purchaser, 17 native trees which would offset the carbon dioxide emissions for the life of that motor vehicle.

These claims were misleading. The carbon dioxide emissions from any Saab motor vehicle would not be neutral over the life of that motor vehicle, and the planting of 17 native trees would only provide a carbon dioxide emission offset for a single year's operation of the motor vehicle.

The ACCC has also accepted court enforceable undertakings from GM Holden whereby GM Holden has undertaken to:

• refrain from republishing the advertisements
• retrain all its Saab marketing staff in relation to misleading and deceptive conduct in the context of 'green' marketing claims to make them aware of their responsibilities under the Act, and
• have the training reviewed by an independent third party and have the reviewer provide a report to the ACCC about the training.

In addition, GM Holden has advised the ACCC that it will plant 12,500 native trees which it believes will be a sufficient number of trees to offset the carbon dioxide emissions for the life of all of the Saab motor vehicles sold during the campaign.

ACCC Publications:

• Green marketing and the Trade Practices Act
• Carbon claims and the Trade Practices Act

Full post as published by Australian Regulatory Compliance Review on September 18, 2008 (boomark / email).