The New Zealand Commerce Commission warned Wesfarmers (ASX:WES) subsidiary Kmart NZ for potentially violating the Fair Trading Act, citing concerns over greenwashing.
Kmart admitted during the commission's investigation that its Better Cotton products, advertised with "100% sustainably sourced cotton," was mixed with conventional cotton in the supply chain.
Kmart removed the "100% sustainably sourced cotton" claim from its New Zealand website after the commission raised the issue.