From Reef-Safe to Risky: How Sunscreen and Skincare Brands Got Caught for Greenwashing

Beauty Industry Reality Check

Greenwashing in beauty isn’t new — but recent claims are forcing a reckoning. From reef-safe sunscreen lawsuits to misleading 'clean' claims, regulators and consumers are no longer accepting sustainability at face value. Every label, tagline, and packaging format is now expected to be backed by science, recovery infrastructure, and compliance proof.

The Sunscreen Scandal: 'Reef-Friendly' Backfires

In 2025, the ACCC launched legal action against Edgewell (manufacturer of Banana Boat and Hawaiian Tropic) for falsely claiming its sunscreens were 'reef-friendly'. Despite removing oxybenzone and octinoxate, other reef-harming ingredients remained—making the label misleading under environmental consumer law. This wasn’t isolated. Supergoop and Sun Bum also faced lawsuits in the US for using eco-friendly terms without scientific or regulatory substantiation.

Common Greenwashing Traps in Beauty Packaging

• Compostable pouches that aren’t accepted in kerbside programs

• Recyclable packaging made from mixed materials that can't be processed

• Refill formats using non-recoverable hard plastics (such as coloured PET - check the Sydney Morning Herald / The Age article below) or pump tops

• Third-party certifications from suppliers, not valid for the final packaged format

Why the landscape is Changing?

FY25 marks the final checkpoint for Australia's 2025 APCO packaging targets. Under new ACCC guidance, claims such as 'eco', 'clean', or 'green' must be supported by verifiable evidence, lifecycle assessments, and alignment with real recovery systems.

In parallel, the EU’s Green Claims Directive together with the in forced Packaging and EU Packaging Waste Regulation (PPWR) iare raising global compliance expectations.

What Beauty Brands Must Do Now

1. Audit all packaging and marketing claims — remove vague language and add verifiable proof.

2. Confirm recyclability or compostability with local recovery infrastructure.

3. Standardise sustainability claims across markets to avoid global inconsistency.

4. Collaborate across legal, product, and sustainability teams to embed compliance into product development.

How AWEN Consulting Supports Claim Credibility and Compliance

AWEN Consulting partners with beauty brands to design packaging systems that go beyond marketing. Our engineering-led claim audits, material assessments, and compliance strategies ensure packaging meets the market expectations, aligns with recovery systems, and strengthens brand trust.

Conclusion: Beauty Claims Must Now Prove Performance

Packaging and product claims must move from aspirational to operational. With legal action increasing and consumer expectations rising, the safest path is one of evidence, engineering, and transparency. AWEN Consulting helps beauty brands close the gap between sustainability promises and packaging performance — turning risk into resilience.

Download the Packaging Audit Checklist

Assess if your beauty packaging is future-ready. Use our free audit checklist to identify weak claims, misaligned formats, or recovery risks — before they become legal or brand liabilities. Download it here.

Frequently Asked Questions

• Q: What qualifies as greenwashing in beauty packaging?

A: Any environmental claim (e.g., ‘clean’, ‘eco-friendly’, ‘reef-safe’) that lacks scientific validation or cannot be supported by infrastructure is considered greenwashing — especially when it misleads consumers about the environmental impact of packaging or ingredients.

• Q: Are compostable beauty packaging compliant with APCO Guidelines?

A: Only if 80% or more of the population have access to compostable collection. Many compostable formats used in beauty are not certified for home or commercial composting under Australian certification, making them non-compliant despite the label.

• Q: What makes a sustainability claim valid under ACCC?

A: A valid claim must be specific, backed by measurable evidence, and relevant to the final packaged product — not just a component or raw material. Lifecycle analysis and local recovery system compatibility are essential.

• Q: How can I check if a supplier’s environmental certification applies to my product?

A: Ask whether the certification is specific to the market the product is sold at. AWEN Consulting supports clients in tracing certification chains and identifying where supplier claims are misapplied.

• Q: What are the legal risks of using vague environmental terms?

A: Terms like ‘natural’, ‘non-toxic’, or ‘green’ may trigger investigations if they are not clearly defined or substantiated. this year, the ACCC and global regulators are actively pursuing misleading environmental messaging.