Australian shoppers trying to make more sustainable choices may be misled by confusing and inconsistent product labels.

New research reveals that many "green" claims are almost impossible to verify, often masking the full truth. 

University of Technology (UTS) professor of marketing Natalina Zlatevska said shoppers often rely on the labels as a shortcut when making quick decisions in supermarkets.

“Consumers are trying to make better choices, but sustainability labels are not always easy to understand,” said Professor Zlatevska. “There are so many different labels on products that it can be hard to know what they actually mean, or whether they reflect a significant environmental benefit.

“Shoppers might pick up a product thinking they are doing the right thing because it has a sustainability label, but that label may only refer to one part of the product’s journey – such as farming, packaging, transport or carbon emissions.

“Even carbon footprint labels can vary widely. A consumer may see a carbon claim on a product, but it is not always clear what has been measured, how it has been calculated, or how to compare it with another product.”

But that label may only refer to one part of the product’s journey – such as farming, packaging, transport or carbon emissions.

Professor Natalina Zlatevska, Discipline of Marketing, UTS Business School

In a paper published in the Journal of Strategic Marketing, UTS and Bond University researchers examined sustainability labels used on food and consumer products worldwide and found there is also a risk that consumers are paying more for products because they appear to be sustainable, without really knowing whether that claim makes a significant difference.

“If a can of tuna, for example, is covered in sustainability labels it can create the impression that it is the better choice,” said Professor Zlatevska. “But unless those labels are clear and comparable, consumers may be spending extra money without knowing what impact they are actually having.”

The researchers recommend clearer Australian standards and regulation for sustainability labelling and a more consistent approach.

“At the moment, the space is largely unregulated in Australia, which means consumers are being asked to interpret a wide range of claims without a common standard,” said Professor Zlatevska.

“Standardising sustainability labels would help consumers understand what they are buying and make it easier to compare products fairly.

“Europe is already moving further ahead in this space, with more work being done to standardise sustainability claims and labels. Australia has an opportunity to learn from that and create a clearer system for consumers.”

Research collaborator Dr Belinda Barton from Bond University said the industry needs to build trust with consumers.

“Consumers don’t need more labels, they need clear, simple labels that help them decide, rather than labels that raise more questions,” said Dr Barton. “Clear, transparent, and reliable labels are key to building trust in sustainable labels and food labelling in general.”

“The key message for shoppers is to look closely at what a sustainability label is claiming. Don’t assume all labels mean the same thing, and don’t assume a label automatically means a product is the most sustainable option.”

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UTS researcher

Natalina Zlatevska

Head Of Marketing Discipline Group, Business School