Greenwashing Allegations: Sunscreen Giant Taken to Court Over ‘Reef Friendly’ Claims

Originally reported by the ACCC, 1 July 2025

This blog is for general information only. Bane Legal Services is not a law firm and does not provide legal advice.

Can you trust the “reef friendly” label on your sunscreen? 

That’s the question at the centre of a Federal Court case brought by the Australian Competition and Consumer Commission (ACCC) against global skincare manufacturer Edgewell Personal Care—the company behind popular sunscreen brands Banana Boat and Hawaiian Tropic.

The ACCC alleges that Edgewell made false or misleading environmental claims, or “greenwashing”, by labelling dozens of sunscreen products as “reef friendly” without adequate scientific backing.

What the ACCC is Alleging

According to the ACCC media release published 1 July 2025, the regulator claims that Edgewell:

• Promoted over 90 sunscreen products in Australia between August 2020 and December 2024 as “reef friendly”.

• Made these claims via product packaging, websites, social media, and retailer catalogues.

• Relied on the absence of two specific chemicals—oxybenzone and octinoxate—to justify the “reef friendly” label.

• Continued to make the claims in Australia even after removing them from U.S. products around 2020.

However, the ACCC says these sunscreens contained other active ingredients—such as octocrylene, homosalate, 4-MBC, and avobenzone—that may cause or risk causing harm to coral reefs and marine life.

What’s more, the ACCC alleges that Edgewell and its U.S. parent company were aware of scientific studies suggesting potential environmental harm but did not conduct their own testing.

Why This Matters for Australian Businesses

Environmental claims—whether on packaging, marketing materials, or websites—can influence consumer behaviour. ACCC Deputy Chair Catriona Lowe said:

“We allege that Edgewell engaged in greenwashing... without a reasonable or scientific basis to make those claims.”

She added that misleading environmental claims can deprive consumers of the ability to make informed purchasing decisions, particularly when they are trying to shop sustainably.

The ACCC’s Response

The ACCC is seeking:

• Penalties

• Declarations

• Injunctions

• Legal costs

• Other relevant court orders

This case follows the ACCC’s growing focus on environmental marketing. In December 2023, the regulator released official guidance for businesses on making sustainability claims. It advises companies to:

• Avoid vague or unsubstantiated environmental statements

• Support claims with reliable scientific evidence

• Use third-party certifications where possible

You can read the full guidance here: Environmental and Sustainability Claims - ACCC

What This Means for Australian Business Owners

Whether you’re selling sunscreen, skincare, cleaning products, or anything in between—if you make environmental claims, they need to be accurate, evidence-based, and transparent.

Greenwashing is now firmly in the ACCC’s crosshairs. And with rising consumer demand for environmentally responsible products, misleading marketing could lead to serious legal consequences.

Need Legal Advice on Marketing and Compliance?

At Bane Legal Services, we’re not a law firm—but we are your trusted legal matchmaker. With over 30 years of business experience, we help Australian business owners connect with the right commercial lawyers for their specific needs—whether it’s compliance with the Australian Consumer Law, reviewing marketing claims, or responding to regulator action.

If you're unsure whether your business is legally compliant, or you want peace of mind before launching a new campaign, we can help you find a lawyer who understands your industry and your goals.

Talk to us today — before the ACCC talks to you.

Source:

This article is based on a media release by the Australian Competition and Consumer Commission (ACCC) dated 1 July 2025. You can read the original release here.