ARTICLE
30 November 2025

Sustainability or liability? The international IP landscape for environmental claims in the food and beverage sector

MP
Madderns Patent & Trade Mark Attorneys

Contributor

Madderns is a leading privately-owned Patent and Trade Mark Attorney firm based in Adelaide, providing specialized intellectual property services in Australia and internationally for over 50 years. Their experienced team, including experts with PhD qualifications, works closely with clients to protect their brands and technologies. Serving a diverse client base, Madderns offers strategic advice on patents, trade marks, designs, and domain names to ensure the long-term success of their clients' intellectual property assets in various markets.
In the food and beverage space, environmental claims have become a serious IP and legal issue in Australia and internationally.
Australia Intellectual Property
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In the food and beverage space, environmental claims have become a serious IP and legal issue in Australia and internationally. A simple colour choice, image or technical statement can suggest sustainability and must be backed by solid evidence. It's worth exploring the latest Australian cases, the growing global shift toward tighter standards and the way trade marks, packaging, patents and R&D shape a product's environmental message. When proof and presentation align, businesses stay credible, competitive and well protected.

1. Environmental messaging is now a whole-of-IP issue

Environmental claims are no longer just marketing statements. In the food and beverage sector, they intersect with trade marks, packaging design, patents, R&D outputs, and broader IP strategy. Every visual or technical cue can create an environmental impression that must be accurate and supported.

Consumers respond strongly to sustainability signals. Regulators now require those signals to be evidence-based.

2. What constitutes an environmental claim

Under Australian Consumer Law (Schedule 2 to the Competition and Consumer Act 2010 (Cth)), an environmental claim can arise through:

  • wording and slogans;
  • trade marks and brand names;
  • packaging structure and design;
  • imagery, colours and icons; and
  • technical statements about performance or composition.

Any feature that implies an environmental benefit is a claim that must be substantiated.

3. Why the food and beverage industry is under intense scrutiny

The ACCC is Australia's national consumer, competition, and product safety regulator responsible for enforcing the Australian Consumer Law.

Packaging is one of the strongest drivers of environmental assumptions. A leaf, a wave, an ocean colour palette, or a term such as natural or ocean friendly can suggest environmental qualities even when none are intended. The ACCC has identified the food and beverage sectoras one of the industries with the highest proportion of concerning environmental claims.

4. Recent Australian matters shaping expectations

4.1 ACCC v Clorox Australia Pty Ltd [2025] FCA

GLAD bags were marketed as "50% Ocean Plastic Recycled" despite being made from plastic collected inland. The Federal Court imposed $8.25 million in penalties and corrective notices.

ACCC link: https://www.accc.gov.au/media-release/clorox-ordered-to-pay-825m-in-penuries-for-misleading-ocean-plastic-claims-about-certain-glad-products

4.2 MOO Premium Foods: "100% Ocean Plastic" yoghurt tubs (court-enforceable undertaking)

MOO marketed yoghurt tubs as "100% Ocean Plastic", but the material was sourced from coastal communities, not the ocean. MOO amended its packaging and implemented a compliance program.

ACCC link: https://www.accc.gov.au/media-release/moo-premium-foods-gives-undertaking-after-accc-investigates-ocean-plastic-claims

4.3 ACCC sweep: food and drink sector (2022–23)

In a nationwide sweep of 247 businesses, 57 per cent of environmental claims raised concerns. Food and drink was identified as a high-risk category sector for 'greenwashing'.

ACCC link: https://www.accc.gov.au/media-release/accc-greenwashing-internet-sweep-unearths-widespread-concerning-claims

5. Trade marks, packaging, and IP: claims by implication

Trade marks can themselves function as environmental claims. Names such as Eco Brew, Clean Harvest or Carbon Neutral Coffee, and imagery featuring leaves, oceans, wildlife or earthy colours, can imply sustainability credentials.

Trade mark registration does not protect a business from greenwashing liability. If the mark creates a misleading environmental impression, it may still breach Australian consumer laws.

Packaging shapes, symbols and colour cues can also imply environmental advantages that require substantiation.

6. Patents and technical claims: why accuracy matters

Environmental innovation in the food and beverage sector increasingly relies on technical innovation, such as biodegradable packing materials, alternative proteins and water or energy-efficient processes.

The Australian Patents Act 1990 (Cth) has its own checks against unsubstantiated green claims:

  • Section 18(1)(c) requires a patent to deliver on any environmental benefit it claims to provide;
  • Section 40(2)(a) requires the patent to "disclose the invention in a manner which is clear enough and complete enough for it to be performed by others"; and
  • Section 40(3) ensures the scope of the monopoly does not overreach the inventor's actual technical contribution.

If marketing relies on patented or proprietary technology to support an environmental claim, the underlying science must match the narrative. A patent that overstates performance, is light on disclosure or lacks technical support increases both patent invalidity and greenwashing risk.

Patents can assist in substantiation but must sit alongside testing, lifecycle data, supplier verification and R&D documentation.

7. International frameworks driving higher standards

Globally, regulators are tightening the rules on environmental claims.

  • European Union: Empowering Consumers for the Green Transition Directive

Link: https://eur-lex.europa.eu/eli/dir/2024/825/oj

This directive restricts broad environmental claims without proof, limits offset-only carbon neutral statements and requires robust life-cycle substantiation.

  • United Kingdom: CMA Green Claims Code

Link: https://www.gov.uk/government/publications/green-claims-code-making-environmental-claims
and ASA rulings
Link: https://www.asa.org.uk/codes-and-rulings.html

These require clear, specific and well-evidenced environmental claims and treat imagery and colour as part of the environmental impression.

  • United States: FTC Green Guides

Link: https://www.ftc.gov/legal-library/browse/rules/green-guides
These guides require accuracy in recyclability, degradability and offset claims and set clear parameters for environmental certifications and seals.

Together, these frameworks set a consistently high evidentiary threshold.

8. High-risk environmental claims

  • carbon neutral, net zero and climate positive;
  • recyclable, recycled content, compostable and biodegradable;
  • sustainable, eco friendly and green;
  • imagery suggesting environmental or animal welfare benefits; and
  • unaccredited certification-style symbols

9. How IP, legal, marketing and R&D teams stay aligned

  • substantiate environmental claims before publication;
  • treat words, images and technical statements as equally powerful;
  • ensure patents, product data and environmental messaging remain consistent;
  • embed environmental reviews in trade mark, packaging, and innovation processes; and
  • maintain clear documentation of testing, materials and substantiation.

10. The bottom line

Green claims can elevate your brand or expose it. The difference lies in the evidence behind them.

For food and beverage businesses, the smartest move is to treat environmental messaging like any other high value IP: build it carefully, support it fully and let the facts speak louder than the colour green.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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