Kmart NZ has been warned by the Commerce Commission for likely breaching the Fair Trading Act with its “100% sustainably sourced cotton” advertising.

The Commission says the claim was misleading because Kmart’s “Better Cotton” was mixed with conventional cotton, meaning the retailer couldn’t guarantee its clothing was entirely sustainable.

Vanessa Horne, the Commission’s Competition, Fair Trading, and Credit General Manager, says greenwashing makes it hard for consumers to know if products are genuinely eco-friendly.

“If you can’t back it up, don’t say it,” she says.

The claim ran from 4 August 2023 until 4 October 2024, when it was removed after the Commission raised concerns.

Kmart has since provided compliance training to staff.

While only the court can confirm a breach, the warning puts Kmart on notice for the future.

The Commission says environmental claims must be clear, accurate, and supported by evidence.

It has also joined 19 international consumer protection agencies in urging the fashion industry to check their marketing for compliance.

For Hibiscus Coast shoppers, the case is a reminder to look beyond bold green labels.

Many locals choose products based on environmental promises, and misleading claims can distort those decisions and disadvantage genuinely sustainable businesses.

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