The Australian Competition and Consumer Commission (ACCC) has initiated Federal Court proceedings against Edgewell Personal Care Australia Pty Ltd and its parent company, Edgewell Personal Care Company, over allegations that the companies made false or misleading claims regarding the ‘reef friendly’ nature of their Hawaiian Tropic and Banana Boat sunscreen products.

The ACCC claims that Edgewell Australia breached Australian Consumer Law by promoting ‘reef friendly’ claims across various platforms, including websites, social media, retailer catalogues, and product packaging. These claims were made between August 2020 and December 2024, based on guidance from Edgewell Personal Care Company (Edgewell PCC).

Edgewell asserted that their sunscreens were ‘reef friendly’ because they did not contain oxybenzone or octinoxate, chemicals banned in certain regions due to their harmful effects on coral reefs. However, the ACCC alleges that the sunscreens contained other ingredients such as octocrylene, homosalate, 4-MBC, and avobenzone, which could also harm reefs.

The case involves over 90 sunscreen products sold by Edgewell over a four-year period, each containing one or more of these potentially harmful ingredients. The ACCC alleges that Edgewell was aware of scientific studies indicating these ingredients could damage reefs but did not conduct any testing to assess their impact.

Edgewell PCC reportedly removed ‘reef friendly’ claims from its US products around 2020, yet these claims persisted in Australia until December 2024. The ACCC is seeking penalties, declarations, injunctions, costs, and other orders against Edgewell.

“We allege that Edgewell engaged in greenwashing by making claims about the environmental benefits of Hawaiian Tropic and Banana Boat sunscreens that it had no reasonable or scientific basis to make,” said ACCC Deputy Chair Catriona Lowe.

“Many consumers consider environmental factors when purchasing products. By engaging in this alleged greenwashing, we say Edgewell deprived consumers of the ability to make an informed decision and may have prevented them from purchasing a different brand of sunscreen that did not contain chemicals which risked causing harm to reefs.”

The ACCC contends that the conduct was widespread, potentially misleading a significant number of consumers. “We believe this conduct was widespread and risked potentially misleading a large number of consumers. The sunscreen products were supplied throughout Australia over a period of four years, including in large stores and online websites,” Lowe said.

Edgewell Personal Care Australia Pty Ltd operates as a subsidiary of Edgewell Personal Care Company, a multinational consumer products manufacturer listed on the New York Stock Exchange. Edgewell PCC is recognised as one of the largest manufacturers of personal care products, including the Hawaiian Tropic and Banana Boat sunscreen brands.

In December 2023, the ACCC published guidance for businesses on making environmental and sustainability claims.

“Businesses should not shy away from promoting the environmental credentials of their products, but they must be able to substantiate any claims, for example through reputable third-party certification or reliable scientific reports,” said Lowe.