An overview of recent revisions to ftc green guides

by Green Business Bureau on Oct 17, 2011

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LOHAS marketers know the value of terms like “biodegradable”, “environmentally-friendly”, and “recycled” – these are the buzz words that communicate the value of our product or service. But, when you use these terms, could you be deceiving your customer? Are you adequately verifying your environmental claims? Your environmental marketing may be falling short based on newly proposed changes to the FTC’s Green Guides. You can’t afford to be complacent about meeting these new guidelines, as the Commission has brought action against companies whose green marketing claims failed their standards, resulting in years of litigation and millions in court fees. Marcos Cordero, CEO of the Green Business Bureau, will lead this highly-informative breakout session where he will cover the proposed changes and offer you tips on how you can make sure that your green claims measure up. A must-attend for LOHAS marketers and business owners.

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An overview of recent revisions to ftc green guides — Presentation Transcript

You Can’t Say That (Can You?)
An Overview of Recent Revisions to the
FTC Green Guides

Formal Complaint Made
$40,000 in Legal Fees
Still being monitored
“My business will never be the same…”

Up to $16,000 in civil penalties per violation

“Firm's internal certification process is deceptive, lawsuit says…”
“Ongoing two-year civil lawsuit…”
Federal case seeks nationwideclass-action status

"Responsible companies know to pay heed to the FTC Green Guides.
Brian Sansoni - Spokesman for the Soap and Detergent Association

Experience with hundreds of green companies
Sustainability Trust Provider
Partnerships with Green America and Intuit

79%
Increase in “green” products
Between 2009-2010

2%
Products that were “greenwashing” free
25 out of 2,219 products examined

Consumers are becoming more savvy

1992 Green Guides Launched
Revised 1996, 1998
Current Revisions StrengthenExisting Guides
Address New Technologies

Neither force nor effect of law
but
Action can be taken under FTC Act

Green Guides comprised of
Four Key Principles
Qualifications & Disclosures
Distinction of Benefits
Overstatement
Comparative Claims

Qualifications & Disclosure
Clear, prominent and understandable
Plain language, large type
Placed close to claim

No qualifications

Distinction of Benefits
Clearly distinguished between products,
service and packaging
Language that cannot be misinterpreted

Clearly distinguished between compostable
and non-compostable components

Overstatement
Don’t overstate benefits
Qualify statements
Substantiate claims

Comparative claims
Bathroom tiles 20% greater recycled content – deceptive
P. 198 example 4: “environmentally preferable” -deceptive. Needs to be substantiated
Comparisons typically are two own previous products OR competitor products
Comparative Statements
Make basis of comparison clear
Specify whether comparing to your previous product or competitor product

Clear, prominent and understandable
Plain language, large type

10 Types of Claims
Covered by the Green Guides

How they work together

General Environmental Benefit
“eco-friendly” “green” “sustainable”
Consumer confusion
Must specifically quality claim

“eco-friendly” with no qualification

Carbon Offsets
Carbon Offsets
Must occur within 2 years
Deceptive if required by law
Properly quantified by reliable methods

Certifications and Labels
Certifications & Seals
Does not eliminate obligation to
substantiate claims
Label itself must meet FTC guidelines and principles

Label itself must meet FTC guidelines and principles

Fully qualified

Compostable claims
Compostable
Must compost in reasonable time
Qualify claims if it can’t be
composted at home
Accurately describe benefits of
disposal in landfill

Must decompose within 1 year

Degradable claims
Degradable
Must decompose within 1 year
Must decompose in customary
disposal environment
“Degradable” in landfill is deceptive

“…false and unsubstantiated claims that their American Fare paper products were ‘biodegradable’…”

Qualified

Refillable claims
Free of / Non-Toxic
Must not contain other substances that pose an environmental risk
Substance must never have been associated with product

Recyclable claims
Recyclable
Must be recyclable in market
All components must be
equally recyclable
Must specify if recycling not available in market

Must specify if recycling not available in market

Recycled content claims
Recycled Content
Must have been “recovered” or “diverted”
No requirement to distinguish
between pre- and post-consumer
Must indicate percentage

Does not indicate percentage

Renewable Energy Claims
Made with Renewable Energy
New Category
Deceptive if any part manufactured
with fossil fuel-derived power
Source should be claimed

Does not give % power

Very specific regarding claim:
1/3 renewable energy credits

Made with Renewable Materials
Must be qualified if not:
Recycled
Recyclable
Biodegradable

Specified Materials

Ozone safe and ozone-friendly
Ozone-Safe / Ozone-Friendly
MUST be safe to the ozone layer
List of substances governed by EPA

Your Turn

Size doesn’t matter. Really.
Don’t be stupid.
It’s all about the matrix.
What will a reasonable (read: squeaky wheel) think?

For more information or to download this presentation, please visit:
www.gbb.org/lohas_ftc

An overview of recent revisions to ftc green guides

by Green Business Bureau on Oct 17, 2011

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An overview of recent revisions to ftc green guides — Presentation Transcript