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ARTICLE · 08 OCTOBER 2012

FTC's New Guidance Has Teeth To Go After Greenwashing

Companies who want to market their products as being good for the environment will need to back up their claims more carefully.

United StatesEnvironment

Companies who want to market their products as being good for the environment will need to back up their claims more carefully, in light of the Federal Trade Commission's new environmental marketing guidelines, released this week.  The "Guides for the Use of Environmental Marketing Claims," or Green Guides, updated for the first time since 1998, discourage companies from using broad claims like "green," "eco-friendly", or "environmentally preferable" that are difficult, if not impossible, to substantiate.  Although the guidelines are not formal rules, they do specify how FTC will enforce US marketing laws.

Instead, environmental claims should be clear, prominent, and specific -- and be supported by scientific evidence.   For instance, the Green Guides caution that a claim of "biodegradable" would be deceptive if the product did not completely decompose within one year after customary disposal -- even if "customary disposal" does not allow an opportunity for

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