Environmental Marketing Claims
Green
claims can be found in many advertisements and labels today. They're the marketing
response to consumers' increasing interest in protecting the environment.
Institutional consumers also care about buying "green." Indeed, the President
of the United States recently issued Executive Orders encouraging federal procurement
officers to purchase recycled and environmentally preferable products.
But what do green claims really mean? And when are they considered misleading?
National guidelines issued by the Federal Trade Commission (FTC), with the
cooperation of the U.S. Environmental Protection Agency (EPA), are available to help
companies make sure their green claims don't run afoul of the law. The FTC Act prohibits
deceptive acts or practices, including deceptive representations in advertising, labeling,
product inserts, catalogs, and sales presentations.
What are the FTC Guides?
The FTC's Guides for the Use of Environmental Marketing Claims explain how the FTC
Act is enforced when it comes to environmental claims. The Guides provide a framework for
the use of environmental advertising and labeling claims in the marketplace: they reduce
consumer confusion, help establish a level playing field for competition, and reduce the
legal risk for marketers. That's important because increasingly, local and state
jurisdictions are relying on the Guides for direction on enforcement.
The Guides recommend that marketers qualify environmental claims that are broad or
vague-or avoid them altogether. For example, broad claims like "environmentally
safe" or "environmentally friendly" should be qualified-or avoided-because
they can convey a wide range of meanings to consumers that may be difficult to
substantiate.
An example of a substantiated claim from the Guides
A paperboard package with 20% recycled fiber by weight is labeled as containing
"20% recycled fiber." Some of the recycled content was composed of material
collected from consumers after use of the original product. The rest was composed of
overrun newspaper stock never sold to customers. The claim is not deceptive.
An example of a deceptive claim from the Guides
A lawn care product is advertised as "essentially non-toxic" and
"practically non-toxic." Consumers would likely interpret these claims in the
context of such a product as applying not only to human health effects but also to the
product's environmental effects. Since the claims would likely convey to consumers that
the product does not pose any risk to humans or the environment, if the pesticide in fact
poses a significant risk to humans or environment, the claims would be deceptive.
Similarly, the claim "environmentally preferable" should be carefully
qualified (to indicate the ways in which the product is environmentally preferable), or
avoided, because it is likely to broadly convey to consumers that a product is
environmentally superior to other products in all respects.
According to the Guides, marketers must be able to substantiate the reasonable
interpretations that consumers draw from a claim. Specific claims that are substantiated
can help consumers make informed environmental decisions when they make purchases.
The Guides give examples of how consumers may interpret various claims, and identify
the kinds of claims that should be explained or qualified to avoid deception. They provide
specific guidance regarding certain claims (recyclable, degradable, compostable, recycled
content, source reduction, refillable, ozone friendly, non-toxic, and chlorine-free), but
they do not scientifically define environmental terms or establish product performance
standards.
Excerpt from the Guides on use of terms "degradable,"
"biodegradable" and "photodegradable"
It is deceptive to misrepresent, directly or by implication, that a product or
package is degradable, biodegradable or photodegradable. An unqualified claim that a
product or package is degradable, biodegradable or photo-degradable should be
substantiated by competent and reliable scientific evidence that the entire product or
package will completely break down and return to nature, that is, decompose into elements
found in nature within a reasonable short period of time after customary disposal.
Claims of degradability, biodegrada-bility or photodegradability should be qualified to
the extent necessary to avoid consumer deception about: (a) the product
or package's ability to degrade in the environment where it is customarily disposed; and (b)
the rate and extent of degradation.
Environmentally Preferable Purchasing
Environmentally Preferable Purchasing (EPP) promotes federal government use of
products and services that have reduced impacts on human health and the environment. Such
purchases are required by Executive Order 12873, Federal Acquisition, Recycling, and Waste
Prevention. The Executive Order also directed the EPA to develop guidance to help federal
agencies incorporate environmental preferability into their purchasing procedures.
"Environmentally preferable products are products and services [that] have a
lesser or reduced effect on human health and the environment when compared to other
products and services that serve the same purpose."
Executive Order 12873, Federal Acquisition, Recycling, and Waste Prevention,
October 20, 1993.
How do I find out more?
For copies of the Guides, contact the Consumer Response Center by phone: toll-free
at 1-877-FTC-HELP (382-4357); TDD: 1-866-653-4261; by mail: Consumer Response Center,
Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580. The Guides
also are available on the World Wide Web at www.ftc.gov
under the heading "Consumer Protection" and the subheading
"Environment."
The FTC works for the consumer to
prevent fraudulent, deceptive and unfair business practices in the
marketplace and to provide information to help consumers spot, stop and
avoid them. To file a
complaint or to get free information
on consumer issues, visit
www.ftc.gov or
call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The
FTC enters Internet, telemarketing, identity theft and other fraud-related
complaints into
Consumer Sentinel, a
secure, online database available to hundreds of civil and criminal law
enforcement agencies in the U.S. and abroad.
|
FEDERAL TRADE COMMISSION |
FOR THE CONSUMER |
1-877-FTC-HELP |
www.ftc.gov |
|
October
1999 |