The Commerce Commission has released draft guidelines to help businesses understand their obligations for carbon offset and carbon neutrality claims under the Fair Trading Act.
As demand grows for environmentally friendly products and services, the commission says many businesses are using carbon reduction or offsetting to differentiate themselves from their competition.
One of the problems at the moment is that there is no universal acceptance of what constitutes 'carbon neutral' or 'low carbon', and there is no single measurement to back up these concepts.
To overcome this, the commission says consumers need accurate and full information about carbon reduction and offset claims so they can make informed decisions.
The commission says environmental claims is an emerging area of focus and that is why it is looking for feedback on the guidelines before they are finalised.
Commerce Commission director of fair trading, Adrian Sparrow says the guidelines are drawn from the Australian Competition and Consumer Commission (ACCC).
CLICK here to download the draft