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Warning from the Commerce Commission for unsubstantiated representation '100% sustainably sourced cotton'
The Commerce Commission issued a detailed warning letter to Kmart NZ Holdings Limited after investigating its '100% sustainably sourced cotton' claim. The Commission concluded Kmart may have breached section 12A of the Fair Trading Act by making an unsubstantiated representation, as Kmart could not verify the absolute claim due to the mass balance system in its supply chain.
Commerce Commission
Date Added
16 April 2026 at 00:16:03
Why it matters
This letter provides compliance guidance for all businesses making environmental claims, emphasizing the legal requirement for substantiation and the risks of using absolute terms like '100% sustainable.' The warning may be considered in future enforcement if similar conduct recurs.
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