Greenwashing accusation related to Better Cotton

15/08/2025
New Zealand’s consumer protection authority, the Commerce Commission, has announced that it had issued a warning to Kmart NZ for “potentially breaching the Fair Trading Act and making unsubstantiated claims in its ‘100% sustainably sourced cotton’ advertising”.

The accusation pinpoints the lack of clarity in the mass balancing principles that laid the foundation for Better Cotton, a Swiss certification system created in 2009. It has since announced a phasing out of mass balancing, due in part to more stringent rules applied to sustainability claims that brands and retailers can make. 

“Kmart’s absolute claim of ‘100% sustainably sourced cotton’ implies a high level of certainty that we believe Kmart did not have,” declared Vanessa Horne, general manager of the Commerce Commission. Kmart has admitted that its Better Cotton was mixed with conventional cotton in the supply chain. The difficult-to-substantiate claims for 100% sustainable cotton were made over a period starting in August 2023 and were removed by the retailer in October 2024.

“Our message to businesses is simple: if you can’t back it up, don’t say it,” added Ms Horne. 

Delve into the ups and downs of mass balance in our feature in issue 15