Coles, Woolworths and Aldi suppliers warned to make 'immediate' change to false packaging claims

Food manufacturers have been warned they risk breaching consumer law over soft plastic recycling claims.

A chip packet with a red circle highlighting outdated packaging recycling advice. Source: Michael Dahlstrom
In April, 2024 food manufacturers were documented continuing to advertise soft plastic packaging could be recycled. Source: Michael Dahlstrom

Claims have been made that packaging made by food manufacturers whose products line Australia’s supermarket shelves, including Woolworths, Coles and Aldi, could breach consumer law.

The warning was made to businesses by the peak industry body for the packaging sector in an email seen by Yahoo News. It cautions that claims soft plastics can be recycled during now defunct schemes should be immediately removed from marketing materials.

In the July 12 email, the Australian Packaging Covenant Organisation (APCO) singled out continued advertising of the REDcycle scheme which collapsed in November, 2022 after it was revealed plastic had been stockpiled at 44 sites rather than recycled.

The email also advises against using the Return to Store logo, as most supermarkets in Australia will not accept soft plastics. Coles, Woolworths and Aldi, which formed the Soft Plastics Taskforce is trialling a replacement scheme at 12 Melbourne supermarkets.

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The email also includes a new warning that outdated claims about soft plastics on websites are a problem.

“It is imperative to remove any old references to ‘Return to Store’ or ‘REDcycle’ immediately. Failure to comply may result in action under Australian Consumer Law (ACL),” the email says.

Related: Hundreds of supermarket items found with outdated labelling advice that sparks computer fail

The external facade of a shopping centre with Woolworths, Coles and Aldi branding on the side.
Companies that supply products to Woolworths, Coles and Aldi have been put on notice. Source: Getty
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In April and May, scans of supermarket shelves by Yahoo discovered hundreds of products in Coles and Woolworths with outdated recycling advice.

The APCO warning has been welcomed by the Boomerang Alliance, a non-profit group which has advocated against soft plastics recycling claims since the collapse of REDcycle. It has accused the packaging sector of trying to “greenwash” consumers through outdated claims.

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It has called for a complete overhaul of soft plastics advice, and its director Jeff Angel has characterised the sector as “wasteful and environmentally damaging”, noting that only 20 per cent of soft plastics are recycled.

On Monday, APCO told Yahoo it has repeated advice to packaging manufacturers for over a year that advice on soft plastics must be updated.

It said the new warning about claims on online marketing was prompted by Australia’s competition regulator, the Australian Competition and Consumer Commission (ACCC), advising APCO to tell its members to make immediate changes.

“Following the collapse of REDcycle, APCO has been consistent in its communication to members regarding the importance of updating old soft plastic recycling labels across packaging and all other points of consumer communication,” it said in a statement.

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“This includes the removal of 'return to store' and REDcycle mentions in marketing material. These communications have been ongoing for more than a year, with members consistently reminded of their obligations.”

It said it had consulted with the ACCC, in developing new soft plastic advice for packaging which advises shoppers to 'check locally' for recycling options.

“We understand that brand owners have always faced potential action under the Australian Consumer Law (ACL) for misleading representations,” it said.

“The ACCC has not provided brand owners with a "moratorium" or "grace period" to change labels. Therefore, APCO is actively supporting members to remove all misleading references and align with ACCC expectations.”

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