EarthCheck
EarthCheck
Report  |  Updated September 2026
Good for Business. Good for the Planet.
Australian Consumer Law & the EU Empowering Consumers Directive

Your green claims now carry
up to a $100 million risk

For Australian tourism operators, destinations and events businesses. It covers the green claims rules you already work under at home, and the extra rules that apply when you market to Europe.

Check your marketing Can I use the EarthCheck mark?
ACL penalties rose 28 March 2026. EU rules in force since 27 September 2026

"If you make an environmental claim to a consumer, you need to be able to prove it. A vague green impression with nothing behind it breaches the Australian Consumer Law, even if no European ever sees it."

2026
EarthCheck Advisory
What changed

The short version

If you describe your business as green, sustainable or anything like it, the Australian Consumer Law (ACL) already covers that claim. You need to be able to back it up, and it can't give people the wrong idea. Since 28 March 2026 a company can be fined up to $100 million for each breach, and greenwashing is still one of the ACCC's priorities for 2026-27.

Europe adds another layer. Since 27 September 2026, the EU's Empowering Consumers Directive has banned some things outright that the ACL looks at case by case. Calling yourself "eco-friendly" without saying why is one. A "carbon neutral" claim that relies on offsets is another, and so is a label with no proper certification scheme behind it.

In both places the answer is to swap the vague word for something you've measured and can show. Your EarthCheck audit is where those numbers come from. The table below sets out what changes, and the checklist helps you find the gaps in your own marketing.

The claims

What the ACL requires, and where the EU goes further

The ACL applies to every tourism business in Australia, including ones that never see an overseas guest. It looks at each claim in context and asks whether it could mislead. The EU directive only matters if you market to Europe, and it bans some practices outright. Both count photos, colours, logos and business names as claims, as well as words.

PracticeUnder the ACLUnder the EU directive, if you market to Europe
"Eco-friendly" or "green" on its ownRisky. The ACCC's guide says to avoid broad claims with no detail. Say exactly what you mean and be able to prove it.Banned unless the detail sits right beside it in the same ad, listing or page. Replacing the word with the detail is safer.
Calling yourself "sustainable" with no outside checkYou'll need real evidence. It's weaker than certification, but not unlawful in itself.Treated the same as "eco-friendly". Banned unless the detail is right there with it.
"Carbon neutral" through offsetsSay how much comes from offsets rather than cutting your own emissions, and what kind of offsets they are. Without that, it's risky.Banned for a product or service, however clearly you explain the offsets. A climate claim has to rest on your actual emissions.
Your own green badge or logoAllowed, but risky if people could mistake it for independent certification.Banned. You can only show labels from a certification scheme with independent checks, or from an EU government body.
Calling the whole business green when only part of it isThe ACCC looks at the overall impression. If people can't tell which part you mean, it can mislead.Banned.
A pledge such as "working towards net zero"You need reasonable grounds and a plan you could show if asked.You need a published plan with targets, dates and money set aside, checked regularly by an independent expert. Guests have to be able to see what the expert found.
Community claims such as "supports local communities"Same rules as environmental claims. Have the evidence ready.Now named in the law, with the same standard of proof.
"Eco" in your property nameA name can give a green impression like any other claim.Can count as a claim. Explain what's behind it wherever the name appears in your marketing.
Promoting something the law already makes you doCan mislead if it suggests you're going beyond what's required.Banned if every competitor has to do it too.

What to say instead

Take the vague word you use most and replace it with a number. The figures below are made up, so put in your own.

Instead ofTry
"Eco-friendly resort""Our energy use per guest night is 22% below the EarthCheck benchmark for resorts in our climate zone, verified in our 2026 EarthCheck audit."
"Sustainable hotel""EarthCheck Certified since 2019. Our 2026 audit verified a 30% cut in water use per guest night since 2021."
"Carbon neutral stay""We cut the emissions from our energy and fuel use per guest night by 28% between 2022 and 2026, measured and benchmarked through our EarthCheck certification."
"Green operations""We divert 65% of our waste from landfill, measured monthly and verified in our annual EarthCheck audit."
"Supports local communities""80% of our team live within 50 km of the resort, verified in our EarthCheck audit."
The ACCC's eight principles

The ACCC's guide, Making environmental claims: a guide for business, boils it down to eight principles: make accurate and truthful claims, have evidence to back them up, don't hide or omit important information, explain any conditions or qualifications, avoid broad and unqualified claims, use clear and easy to understand language, make sure visual elements don't give the wrong impression, and be direct and open about your sustainability transition.

Keep the detail with the claim

In Europe, a vague word stops being banned once you explain it clearly in the same ad, listing or page, right next to the word. That gets you past the ban. The claim still has to be true, and the detail has to be big enough to carry the word. Solar panels on the roof don't make a whole resort "eco-friendly". Where there's no room for the detail, such as a search ad headline or a short caption, the European Commission says to leave the claim out.

Your EarthCheck certification

What your certification lets you say

Members ask us these three questions more than any others.

Can I display the EarthCheck Certified mark?

Yes. In Australia, independent certification is the best evidence you can have behind a label. In Europe, the directive allows labels from certification schemes that meet its conditions, and EarthCheck Certified meets them. EarthCheck owns the scheme and is a separate legal entity from the certification bodies that audit members. We assess each of those bodies against ISO/IEC 17065. The scheme's requirements are public, and any business that meets them can join.

Use the mark the way the EarthCheck brand guidelines show. Read the EarthCheck brand guidelines (PDF).

Can I describe my business as eco-friendly or sustainable?

Only if you say what's behind it, in the same place. On its own the word is risky under the ACL and banned in marketing to Europe. Your EarthCheck audit checks your energy, water, waste, emissions and community results against benchmarks, so you already have the numbers. The "What to say instead" table shows how to use them.

Holding Climate Active certification?

The Australian Government is ending Climate Active certification and has proposed 30 June 2027 as the end date. Emissions reporting and benchmarking are already part of EarthCheck certification, so you'll still have measured, audited emissions data to back any climate claim.

Practical steps

Check your own marketing

Answer each question honestly. Every step turns green, amber or red, and anything you answer "No" or "Partly" goes into a list of fixes at the bottom.

Do you market to consumers in Europe? Showing the Australian and European questions. If you're unsure, plan as though both apply.
0%
Answer the questions in each step to see where you stand.
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0 at risk0 partly there0 clear
1

List every green claim you make

Not checked

Start with a list. Go through your website, booking platform profiles, search ads, brochures, social media and anything you've co-branded with partners. Write down every green, sustainability or community claim, including your business name, product names, photos and icons.

We have a written list of every green, sustainability and community claim we make.

The list covers every channel: website, booking platforms, search ads, social media, print and partner content.

We've checked our business name, product names, photos and icons, as well as the words.

More guidance
  • For each claim, ask: if the ACCC asked me to prove this tomorrow, could I?
  • What is the evidence? Who verified it? When was it last checked?
  • Check all channels: website, socials, booking platforms, search ads, print collateral, partner co-brand.
2

Swap vague words for facts

Not checked

Words like "eco-friendly", "green" and "sustainable" are risky in Australia and banned on their own in marketing to Europe. Replace each one with something you can measure and show, and put it where the word was.

None of our marketing uses "eco-friendly", "green" or "sustainable" on its own.

We could show the ACCC the evidence for every claim we make.

Where a channel has no room for the detail, we have removed the claim from that channel.

More guidance
  • Instead of "eco-friendly", say what you do and how you know.
  • Instead of "sustainable operator", name your certification and what it covers.
  • Put the detail in the same ad, listing or page, and make sure it covers everything the claim implies.
  • If a channel has no room for the detail, leave the claim out of that channel.
3

Check your badges and labels

Not checked

The ACCC sees independent certification as the strongest basis for a label. In marketing to Europe it's the only basis, apart from labels run by EU government bodies.

Every badge we show is either independent certification or clearly marked as our own commitment.

Our certification is current, and we use the mark the way the brand guidelines show.

Europe In marketing to Europe, we only show labels from a certification scheme with independent checks.

More guidance
  • Does it come from a certification scheme with independent checks?
  • Is your certification current? When does it expire?
  • If you made the badge yourself, is that obvious?
4

Check your carbon and climate claims

Not checked

This is where most of the risk sits. In Australia, a "carbon neutral" claim built on offsets is risky unless you explain the offsets and how good they are. In Europe it's banned, and no explanation fixes it.

Any "carbon neutral" claim explains how much relies on offsets and what kind of offsets they are.

Europe Our European-facing marketing makes no "carbon neutral" claim based on offsets.

Any future target, such as net zero, is backed by a specific, time-bound plan we could show the ACCC.

Europe For Europe, that plan is public and checked regularly by an independent expert.

More guidance
  • Marketing only in Australia? Focus on explaining your offsets and showing your evidence.
  • Marketing to Europe too? Take offset-based carbon neutral claims off anything European travellers see.
  • Your EarthCheck certification includes emissions reporting and benchmarking, so you have measured data to use instead.
5

Check community claims, and claims about the whole business

Not checked

Community and social claims need proof too. So does any claim that makes the whole business sound green when it's really about one part, and anything you promote that the law already requires.

Our community and social claims are backed by specific evidence.

We don't describe the whole business as green when a claim only covers one part of it.

We don't promote legal requirements, or benefits every competitor shares, as selling points.

More guidance
  • "Supports local communities", "fair employer" and "ethical wildlife experiences" all need evidence.
  • If a claim is about your restaurant, don't let it read as a claim about the whole resort.
  • Don't promote a legal requirement, or something every competitor offers, as a selling point.
6

Selling to Europe? Check each country's rules

Not checked

Each EU country enforces the directive through its own law, with its own regulator and penalties.

We know which EU countries our consumers come from.

We have checked the national rules in each key EU market, or have advice on them.

More guidance
  • If Germany, France, the Netherlands, Italy, Spain or the Nordic countries are important source markets, check how each one has written the directive into its law.
  • The UK sits outside the directive and has its own rules, covered under "Does it apply to you?".
  • Your legal adviser, industry body or certification provider can help with each market.

Your gaps

Nothing flagged yet. Any question you answer "No" or "Partly" will appear here with the fix beside it.

    Your answers stay in this browser only. Nothing is sent to EarthCheck.

    Enforcement in practice

    Recent cases

    Four Australian cases, then two from overseas.

    Household products · ACCC, 2024

    Clorox penalised over "ocean plastic" bags

    The Federal Court ordered Clorox Australia to pay $8.25 million over claims that its Glad kitchen and garbage bags were made with 50% ocean plastic. It was one of the ACCC's first greenwashing penalties.

    Sunscreen · ACCC, current proceedings

    Edgewell in court over "reef friendly" claims

    The ACCC has taken Edgewell to court, alleging its "reef friendly" sunscreen claims were misleading. If you market reef or rainforest experiences, expect claims about natural icons to get a close look.

    Energy · ACCC, current proceedings

    Australian Gas Networks challenged over "renewable gas"

    The ACCC is suing Australian Gas Networks over its renewable gas advertising. The ACCC Chair mentioned the case when she confirmed greenwashing as a priority for 2026-27.

    Energy · private litigation, 2025

    EnergyAustralia settles over "carbon neutral" products

    In May 2025, EnergyAustralia settled a case brought by Parents for Climate over its "Go Neutral" offset products. It publicly accepted that offsets don't prevent or undo the harm of burning fossil fuels, and apologised to customers. A community group brought the case, not a regulator.

    Accommodation · UK ASA, 2026

    Thomas Cook ruled against over an unqualified "Eco Resort" claim

    A paid search ad called a hotel "Sandos Caracol Eco Resort", a phrase Google's ad tools pulled from the property's old name. The UK regulator said "eco" has no fixed meaning, and nothing in the ad or its landing page explained the resort's environmental work. Blaming the automated ad tool didn't help.

    Aviation · EU consumer authorities, 2023

    Airlines challenged over "green flying" claims

    EU consumer authorities challenged easyJet, Ryanair, Lufthansa, Air France and others over claims like "green flying" and "climate neutral". They found the wording, and the way offsets were presented, could make people think a flight's emissions had been cancelled out.

    Scope and reach

    Does it apply to you?

    Yes. The ACL covers any claim made in trade or commerce in Australia, no matter who reads it. Marketing to Europe adds the EU rules on top.

    Do European travellers see your claims too?

    If your booking data shows guests from Germany, France, the Netherlands, Scandinavia, Italy or Spain, or you work with inbound tour operators who sell to those markets, the EU rules apply to you as well. If you're not sure, assume they do.

    What if I'm a small operator?

    Size makes no difference under either set of rules. The ACL applies to every business, and the EU rules cover micro businesses too. EarthCheck works with operators of every size and can help you decide what to fix first.

    Does it cover business-to-business marketing?

    Under the ACL, yes. The ban on misleading conduct covers dealings between businesses, so pitches to corporate event buyers and trade partners count. The EU directive only covers marketing to consumers, although other EU rules deal with business advertising.

    What about the UK?

    The UK left the EU and hasn't adopted this directive. It has its own rules, the ASA's CAP Code and the CMA's Green Claims Code, and since April 2025 the CMA can fine businesses directly. If British travellers matter to you, check those rules separately.

    Individual operators

    Hotels, tour operators, attractions and other accommodation are all covered by the ACL, and by the EU rules too if they market to Europe. Your business name counts as well. "Eco Lodge" or "Green Resort" can be a claim in itself.

    Regional Tourism Organisations

    When an RTO markets a destination as green or sustainable, it needs the same proof an operator would.

    State Tourism Organisations

    State tourism bodies aren't exempt from the ACL, and the EU rules apply to them too if their marketing reaches European travellers.

    The legal detail

    Penalties and enforcement

    Greenwashing has been on the ACCC's priority list for several years, and it's still there for 2026-27.

    Australian Consumer Law

    Financial penalties

    Up to $100 million per breach, three times the benefit gained, or 30% of turnover during the breach if the benefit can't be worked out, whichever is highest. Applies to conduct from 28 March 2026

    Corrective action

    Court orders to withdraw claims and publish corrective statements to consumers

    Injunctions and undertakings

    The ACCC can seek injunctions, or accept court-enforceable undertakings requiring specific changes to conduct

    Reputational damage

    ACCC cases are public, and the media covers greenwashing findings

    If you also market to Europe

    Each EU country sets its own penalties. EU law sets a few minimums, mainly for large cases that cross borders.

    Fines

    Set by each country. For widespread cross-border breaches, the maximum fine must reach at least 4% of annual turnover in the countries concerned

    Orders to stop

    Authorities can order you to stop a misleading claim and remove it from all marketing

    Consumer remedies

    Consumers harmed by an unfair practice can claim compensation, a price reduction or cancellation

    Corrective statements

    Authorities can require you to publish the decision or a corrective statement

    Court action by others

    Under some national laws, competitors and consumer groups can take a business to court directly

    Reputational damage

    Loss of consumer trust in key European markets

    Test each claim twice

    The ACL asks whether a claim could mislead, given everything around it. The EU directive bans some claims whatever the context, including vague green words on their own, carbon neutral claims based on offsets, and labels without a proper certification scheme. A claim can pass in Australia and still break an EU ban, so if you market to Europe, check each claim against both.

    More reform may be coming

    A Senate committee is looking into greenwashing, including whether Australia needs its own anti-greenwashing law. It's due to report on 2 November 2026.

    The legal detail

    How the EU layer works

    Skip this if you don't market to Europe. If you do, it explains which rules you're actually dealing with.

    01

    What is a Directive?

    The EU can't pass one law that applies automatically in every member country. It passes directives instead, which tell each country what result to achieve and leave it to write its own law. It's a bit like the federal government asking every state to bring in a food safety standard and letting each state write its own Act.

    This one is Directive (EU) 2024/825. It changes two existing laws, the Unfair Commercial Practices Directive (2005/29/EC) and the Consumer Rights Directive (2011/83/EU), rather than creating a new one.

    02

    What is transposition?

    Transposition is when a country writes a directive into its own law. Countries had until 27 March 2026 to do it, and their laws have applied since 27 September 2026.

    03

    Why it matters for you

    Businesses are prosecuted under each country's own law, not the directive. If Germany, France, the Netherlands, Denmark or another EU country is a key market, that country's law is the one to look at. Your inbound tour operators and legal adviser are good people to ask.

    The Commission's Questions & Answers

    On 21 September 2026, the European Commission published answers to 21 common questions about the directive. They're the Commission's early view, and only the EU's Court of Justice can give a binding ruling, but they're the best guide yet to how regulators will read the rules. See the Commission's sustainable consumption page.

    What about the Green Claims Directive?

    You might have heard of the Green Claims Directive. It was a separate proposal that would have made businesses get their environmental claims checked before publishing them. The European Commission said in June 2025 that it planned to withdraw it, talks stopped, and nothing has happened since. The Empowering Consumers Directive is the EU law that applies now.

    Tourism Australia initiative

    Green is Our Gold, backed by evidence

    Australia's natural environment is our biggest competitive advantage. Visitors come for the Great Barrier Reef, the outback, the wildlife. In March 2026, Tourism Australia launched Green is Our Gold and, with it, the Green and Gold Promise: a formal commitment open to any of the country's roughly 360,000 tourism and business events operators, built around five principles: Celebrate Community, Embrace Culture, Preserve Place, Respect Wildlife, and Take Care.

    Alongside the Promise, EarthCheck partnered with Tourism Australia to write the Sustainability Storytelling guides, one for destinations and one for tourism and hospitality operators, that show how to communicate environmental credentials in a way that is specific, evidenced, and appealing to travellers.

    Operators with measured performance data and current third-party certification are in a much stronger position under both the ACL and the EU directive. EarthCheck certification gives operators that independent evidence to stand behind their claims.

    Download the EarthCheck research paper Storytelling guide for businesses (PDF) Storytelling guide for destinations (PDF) Join the Green and Gold Promise

    Need help getting compliant?

    EarthCheck certification and benchmarking give you independently checked numbers to back your claims. Talk to us about what that would look like for your business.

    Speak to the team Download the research paper

    EarthCheck has worked with tourism operators and destinations for more than 35 years, across more than 80 countries.