Aluminium giant Alcoa misled the public through an advertisement earlier this year that claimed it had rehabilitated forests it destroyed for bauxite mining, the advertising standards regulator has found. 

Ad Standards Australia concluded: 

“…the overall impression created by the advertisement was inaccurate and likely to mislead or deceive target consumers. 

“… the Panel considered that the overall impression of the ad that rehabilitation had been completed to a point where the area would constitute a forest was not supported by evidence provided by the advertiser.” [Full report] 

Alcoa has cleared more than 28,000ha of forests in Western Australia for mining and associated works and has applied for approval to clear a further 11,500ha, including significant sections of northern jarrah forest. 

In July and August, EDO lodged complaints with Ad Standards Australia and the Australian Securities & Investments Commission (ASIC) on behalf of three clients: Western Australian Forest Alliance, Conservation Council of Western Australia, and the Wilderness Society.  [See earlier post.] 

Ad Standards has found Alcoa’s advertisement breached four of the five standards contained within its Environmental Code. The groups’ complaint to ASIC is still being assessed. 

CCWA Executive Director Matt Roberts said: “Alcoa has taken advantage of the trust of the WA people and provided misleading and deceptive claims to its audience through these adverts. The people of WA deserve better.” 

TWS spokesperson Jenita Enevoldsen said: “We believe this intensive advertising campaign of misrepresentation attempted to drown-out the voices of experts about the bleak reality of Alcoa’s mining practices in the northern jarrah forest. 

“Now the spotlight is squarely focused on Alcoa’s lack of social licence to operate. It’s time to ensure they are held accountable, and an end date is put on mining of the irreplaceable jarrah forest.”  

EDO Managing Lawyer Kirsty Ruddock said: “Companies that seek to misrepresent the impact of their operations must be held to account, and we are proud to be able to help WAFA, CCWA and the Wilderness Society to do that.” 

Ad Standards Environmental Code Breaches – Alcoa Australia  

Standard Panel ruling 
Section 1  Environmental Claims in Advertising must: Be truthful and factual. The overall impression created by the advertisement including the Environmental Claim should not be false or inaccurate. Not be or likely to be misleading or deceptive to the Target Consumer.  BREACHED “The Panel considered that while the advertisement begins with the statement that rehabilitation is happening and includes a qualification that some features of a forest take time to mature, these were not enough to counteract the overall impression that the cleared areas had already been rehabilitated to a point which would look like a forest.  “The Panel considered that while the target consumer may understand the land had not been returned to its former state, they were also unlikely to understand that rehabilitation is a long-term project and the areas referred to as rehabilitated may only contain seedlings and not forest. “The Panel considered that the overall impression created by the advertisement was inaccurate and likely to mislead or deceive target consumers.” 
Section 2 Environmental Claims in Advertising must be supported by evidence  BREACHED “The Panel considered that the overall impression of the ad that rehabilitation had been completed to a point where the area would constitute a forest was not supported by evidence provided by the advertiser.”  
Section 3 Environmental Claims in Advertising must: Use clear language, having regard to the Target Consumer Be specific – broad, vague or unqualified claims should be avoided Include important limitations, conditions or qualifications in a way that is clear to the Target Consumer  BREACHED “The Panel considered that the language in the advertisement was not clear or specific to a point where the target consumer would understand that rehabilitation was an ongoing project which had not been completed. “The Panel considered that the advertisement did not contain limitations or qualifications in a way which would make this clear to the target consumer.”  
Section 4 Environmental Claims in Advertising must: Be about a genuine benefit to the environment Not overstate the environmental benefit  BREACHED “For the reasons discussed in sections 1 and 2 above, the Panel considered that the use of the words “rehabilitated” and “forest” meant that the overall environmental claim was overstated. “The Panel considered that from the information in the advertisement, it was unclear to what extent the environmental benefits detailed by the advertiser were simply advertising the observance of existing law, as opposed to going beyond it.”