The ACCC is appealing a Federal Court ruling that Kimberly-Clark's Kleenex wipes are suitable to be flushed down the toilet, arguing that the risk of harm to sewerage systems was overlooked.

The court found in June that Kimberly-Clark's "flushable" claims were not false or misleading, a decision that dismayed consumer groups and water utility firms who say wipes contribute to sewage blockages, envi...