The trend is occurring despite more than four in five consumers supporting the introduction of durability and repairability ratings alongside details about their energy use.
The Consumer Policy Research Centre (CPRC) released the findings on Tuesday in a report that investigated appliance sales in Australia and the claims made in stores and advertisements.
The report comes after the Productivity Commission's interim report into the circular economy recommended introducing more product information to help consumers make informed decisions.
The centre's study, called Misused and Confused, was funded by Energy Consumers Australia and probed claims about appliances such as washing machines, clothes dryers, air conditioners and heaters at the point of sale.
Researchers undertook 120 mystery shops in stores across five states and online for the report, staged eight discussion groups and surveyed 1500 people.
The report found consumers were regularly being misled by vague environmental promises on appliances, such as "eco" and "green", with some two in five appliances displaying such claims and almost one in three sales assistants mentioning them.
Four in five consumers said they wanted appliance manufacturers to prove their environmental claims, and more said they would like to see labels on whitegoods that disclosed their expected lifespan and displayed a durability score.
Almost as many consumers (74 per cent) said they would like to see brands add a repairability rating to appliances and reveal whether an appliance could be easily repaired (79 per cent).
Support for repairability and durability labels was highest among older consumers, including members of generation X and baby boomers.
The research showed consumers felt they were not getting enough information to make sustainable choices and wanted more verified data, the centre's senior research and engagement advisor Marianne Campbell said.
"People don't know where to look, they don't know who to trust and they're currently looking at customer reviews and thinking, is this trustworthy?" she told AAP.
"They're using the best of a bad bunch of information, whereas if there was a government-accredited and backed scheme, they would be able to put their trust in that and know it's sound information they could rely on."
Durability and repairability labels have been introduced in Europe to cover a wide range of products, from appliances to smartphones, laptops and tablets.
The labelling system had been working successfully in France, Ms Campbell said, where labels included colours and scores.
"Europe's been making big strides in this space over the last few years," she said.
"It's been a mandatory scheme and the best players are standing out as being more successful, more trustworthy."
A similar system tested in Australia could give Australians more than just certainty - Energy Consumers Australia executive manager Adam Collins said it could reduce household costs and waste.
"This important research shows how vague claims or incomplete information at the point of sale make it more difficult for consumers to make informed decisions for their needs," he said.
The Productivity Commission also recommended the labelling schemes in its interim report into Australia's circular economy in March, although its final report has yet to be published.
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