As a result of these misleading claims, Clorox Australia Pty Ltd has been ordered by the Federal Court to pay $8.25 million.

Although the court deemed the conduct serious, the judge noted that it was not the worst case of environmental misrepresentation.

In reality, over 2.2 million GLAD bags were made from approximately 50% plastic waste sourced from Indonesian communities lacking proper waste management, rather than from oceanic plastic.

ACCC chair Gina Cass-Gottlieb emphasized the importance of truthful environmental claims, highlighting their impact on consumer trust and purchasing decisions.

The Australian Competition and Consumer Commission (ACCC) has found that Clorox falsely claimed between June 2021 and July 2023 that its GLAD bags contained at least half recycled ocean plastic.

As part of the ruling, Clorox must implement a compliance program for Australian Consumer Law, issue a corrective notice on its website, and pay $200,000 towards the ACCC's legal costs.

Clorox acknowledged the court's decision, stating it did not intend to mislead consumers and views this as an opportunity to improve its marketing practices.

The federal court judge, Penelope Neskovcin, noted that the misleading claims deprived consumers of informed purchasing decisions, potentially affecting their choices.

The court ruling underscores that misleading claims can undermine consumer confidence in sustainable practices and harm broader societal interests.

The ACCC reported that 57% of surveyed Australian businesses made concerning environmental claims, indicating a widespread issue of greenwashing.

In December 2023, the ACCC had previously outlined principles to help businesses accurately communicate environmental claims and avoid misleading practices.

Clorox has yet to comment on the ruling or the fine, but expressed respect for the court's decision and the need to enhance its marketing practices.