Proposed laws to prevent organic greenwashing on domestic market
Australia’s lack of regulation on organic food products could mean consumers are being misled, the industry has warned.
The organic food sector has backed proposed new regulations to prevent greenwashing and give consumers certainty that claims made about the origin and use of chemicals on the products they buy are genuine.
The laws would create a legal definition for the word “organic” and close a loophole enabling products with as little as one organic ingredient from being marketed domestically under the term when the rest of their ingredients do not qualify.
Conversely, Australian products exported overseas currently require official certification from an approved organisation, creating what the industry has criticised as a dual system.
Introduced by Nationals senator Bridget McKenzie on Tuesday, the private member’s bill has received the backing of the Organic Development Group, which includes five organic certification bodies and the two largest peak groups, Australian Organic Limited and the National Association for Sustainable Agriculture Australia.
“We know from survey data that consumers are being misled by labels that make unverified organic claims, which is unfair to those buyers and unfair to the producers who go through the lengthy and rigorous process of attaining organic certification,” AOL chief executive Jackie Brian said.
“It has been a loophole we have been calling to be closed for a long time, and we hope to work with all sides of politics to set the standard for consumers in Australia that is the norm for so many countries around the world.”
The Australian organic food industry contributed $851m into the economy in 2022, with the country holding a 1.3 per cent share of global organic sales.
NASAA general manager Damien Rankine said the proposed laws would give clear guidelines to the Australian Competition & Consumer Commission to follow up false claims.
“The ACCC currently has unclear definitions relating to the use of the term organic in Australia, with no specific requirements to meet a particular standard or to be certified, which creates confusion and erodes the trust our industry has worked hard to establish,” Mr Rankine said.
“This bill would provide a clear set of rules, and they could be established quickly and simply.”
PwC analysis commissioned by the federal government in 2022 found the costs of implementing the proposed regulations could outweigh the benefits, particularly for small producers.
The Nationals have called on the Albanese government to support the bill, or adopt the measures in the government’s own legislation.
“At the moment, it can be less than 2 per cent of organic ingredient in products,” Nationals leader David Littleproud said.
“Australians are buying at the checkout thinking that they’re buying fully organic products from overseas because we don’t have an international standard.”
Agriculture Minister Julie Collins said the Coalition had failed to implement a national standard on organic products during its near decade in power but did not say whether she would support the bill.
“Australia has a mandatory standard for organic exports, which is facilitating unimpeded trade,” she said.
“The government recently signed a Statement of Intent on Organics with China, is negotiating an upgraded Organic Equivalency arrangement with the EU and a Mutual Recognition Agreement with India.
“This demonstrates the government’s strong commitment to expanding our trade in organic products.”
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