Federal Trade Commission Cracking Down on ‘Green’ Advertising

by Lawrence Woods on October 6, 2010

in BUSINESS & FINANCIAL

environment 1600x1200 Federal Trade Commission Cracking Down on Green Advertising

environment

Claims that products are somehow better for the environment than competitors’ products, or past versions of the same product, have been hot for some time. Unfortunately, a lot of those claims are more about the green in your wallet than the other kind, and the FTC is taking a harsher look at the advertising.

New guidelines regarding green advertising were proposed on Wednesday, updating the old “Green Guides” that hadn’t been examined since 1998, before many now-common eco-buzzwords were in use. Among phrases mentioned are “degradable,” “carbon offset,” “renewable energy,” and “environmentally friendly.”

As an example, companies typically call their product environmentally friendly for any number of general reasons, such as that it doesn’t use a particular process or ingredient considered poor for the environment; but customers typically interpret the phrase to mean that the product has specific and noted environmental benefits.

In general, the guidelines advise companies that they require “competent and reliable scientific evidence” to back up their green-tinted advertising claims. The update was prompted by lawsuits against various companies for falsely calling their products biodegradable, a clothing company deceptively labeling their bamboo fiber clothing, and others.

While they are not enforceable law in and of themselves, the FTC has the authority to take action against companies it deems to be engaging in deceptive advertising practices. The Green Guides serve to help companies know what is required to safely place the statements on their packaging.

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