ACCC chair Gina Cass-Gottlieb has revealed the watchdog's product safety priorities at the National Consumer Congress.
As part of its Compliance and Enforcement priorities, Cass-Gottlieb said the ACCC be looking closely at greenwashing and sustainability claims by businesses.
The move is aimed at addressing concerns that businesses are falsely promoting environmental or green credentials to capitalise on increasing consumer demand for products or services with these benefits.
"It can be difficult for consumers to determine the veracity of a product or businesses’ green credentials," Cass-Gottlieb said.
"Businesses making false or misleading claims betrays consumer trust and creates an unfair advantage for those businesses doing the wrong thing.
"We will take enforcement action where we find deliberate deception."
As part of this priority work, the ACCC will conduct various education and compliance activities to enhance business awareness of their obligations in making green claims.
Businesses are required to be able to substantiate any environmental claims they make, Cass-Gottlieb said.
"We need to empower and educate consumers about what to look for when choosing green products, and so we will undertake similar education to improve consumer’s understanding of environmental claims."