P&G settles Filipino consumer complaint alleging “false” recyclability labels on-pack

21 Feb 2024 --- Filipino consumers and Procter and Gamble Company’s (P&G) Philippines subsidiary have entered into a mediation agreement to settle a case filed before the Department of Trade and Industry — Fair Trade Enforcement Bureau (DTI-FTEB) for alleged false or misleading advertisements and dangerous plastic packaging.

The complaint against the multinational consumer goods corporation and its Philippine subsidiary stemmed from alleged false or misleading recyclable labels the company uses in the packaging of its products.

In their complaint, the consumers said they were misled by claims of the packaging’s recyclability, which they argued to be false. The complainants, Efren Andrade et al., alleged the violation of Republic Act No. 7394 or the Consumer Act of the Philippines.

Part of the terms and conditions of the agreement is the symbolic and “goodwill” refund of the purchase price of the product, which is the subject of the complaint against P&G Philippines.

“This is a victory for both the complainants and the respondents and credit is due to the mediation of the DTI that opened the opportunity for the parties to dialogue further,” says Enrique Beren, one of the complainants and leader of non-profit Young Bataeños for Environmental Advocacy Network.

P&G Philippines will review recommended improvements on recycling labels based on the complainants’ suggestions.Packaging Insights is yet to receive a response from P&G about this issue.

Amicable resolution
Plastic is “dangerous” throughout its life cycle, flag the complainants. They assert most plastic packaging is single-use plastic that ends up in water bodies, causing ocean plastic pollution that impacts the economy and the health and well-being of people in coastal communities.

A UN Environment Programme study found that more than 13,000 chemicals have been identified as associated with plastics and plastic production across a wide range of applications.

Of the seven respondent companies in the case that was filed before the DTI-FTEB in November 2022, only P&G offered to sit down and dialogue with the complainants, which was “a responsible corporate behavior,” according to lawyer Zelda Soriano at the Community Legal Help and Public Interest Centre, representing the consumers.

The mediation agreement confirms that through mediation conferences facilitated by the DTI-FEB and subsequent dialogues, P&G Philippines addressed the claims raised by the complainants.

As a result, both parties have mutually agreed to settle the case amicably, with the complainants agreeing to withdraw their complaint under specified conditions.

Although P&G Philippines maintains that the recycling labels on their products adhere to relevant laws and regulations, it acknowledges the potential to further “improve” labeling on plastic packaging, as mandated by various legislative acts such as the Extended Producer Responsibility Act (R.A. 11898) and the Consumer Act of the Philippines.

Additionally, the parties recognize the importance of initiatives addressing plastic pollution, alongside educational campaigns promoting consumer rights and environmental sustainability.

Win for impacted communities
Fread De Mesa, another complainant and coordinator of 350 Pilipinas, described the agreement as “a win for communities throughout the country whose lives have been impacted by plastic pollution.”

“It is essential that these large corporations understand their role in the current environmental crisis and take proactive steps to mitigate the harm caused by plastic pollution,” he emphasizes.

“It is their duty to ensure that the products they manufacture and market do not mislead consumers about their environmental impact. It is also their responsibility to actively participate in efforts aimed at reducing the pollution caused by their products and to contribute to the creation of a more sustainable and eco-friendly future.”

As part of the agreement, P&G Philippines will review recommended improvements on recycling labels based on the complainants’ suggestions. 

Although the respondents will have sole discretion to implement the recommended improvements, the complainants reserve the right to take appropriate action should the concern remain unaddressed despite completion of exhausting open communication between the parties.

As part of the agreement, P&G Philippines will review recommended improvements on recycling labels based on suggestions from the complainants.

Carrying on with annual reviews
Under the agreement, the parties aim to maintain open communication and undertake bi-annual closed-door meetings this year, to hear the complainants’ environmentally sustainable solutions to reduce plastic and promote reuse and refill packaging.

The complainants will be represented by Greenpeace, Ecowaste Coalition and Break Free From Plastic Movement in the said bi-annual meetings. 

“We look forward to seeing companies like P&G changing course toward the right direction, and we commend communities such as the fisherfolk, women’s and youth groups in Bataan who continue to be vigilant against big corporations in protecting the rights of Filipinos,” comments Lea Guerrero, country director of Greenpeace Philippines.

This is P&G’s second agreement entered into by the corporation with consumers that have had similar complaints.

In the US, some of the world’s biggest consumer-goods companies have agreed to change their recycling labels for some products after reaching a settlement with an anti-plastic group that said they misled shoppers about the scope of a recycling initiative.

Earlier this year, Last Beach Cleanup, a non-profit that criticizes companies for plastic waste and poor recycling practices, filed a lawsuit in California against waste recycler TerraCycle.

The list included P&G and Coca-Cola, alleging that consumers were not informed about limits on TerraCycle programs that meant their waste might not get recycled.

Meanwhile in Europe, the European Consumer Organisation, backed by environmental groups Client Earth and Environmental Coalition on Standards, took action in November against major water bottle producers, such as Coca-Cola, Danone and Nestlé, for alleged greenwashing.

An October study by the European Institute of Innovation and Technology Food Consumer Observatory revealed a majority of Europeans would welcome an international eco-label on food products to help them make more sustainable purchasing decisions.

Today, Innova Market Insights announced “Honest Packaging” as a top packaging trend for 2024 as lawmakers address greenwashing concerns.

By Benjamin Ferrer