The document discusses green marketing, which promotes products based on environmental friendliness claims such as being biodegradable or recyclable. It highlights consumer preferences for eco-friendly products and the potential for deceptive marketing practices, prompting the FTC to issue guidelines for environmental marketing claims. The document also covers the various forms of green power and consumer protection issues related to green energy, including certification standards and state regulations.

1. Green Marketing
Green Marketing

2. What is it?
What is it?

Using claims about a product's
Using claims about a product's
environmental "friendliness" in order
environmental "friendliness" in order
to promote the product
to promote the product

3. Examples of “green” advertising
Examples of “green” advertising
claims?
claims?

biodegradable
biodegradable

compostable
compostable

recyclable/recycled
recyclable/recycled

environmentally safe
environmentally safe

ozone friendly
ozone friendly

4. Why do companies use it?
Why do companies use it?
 Research shows that consumers
Research shows that consumers
prefer--and are willing to spend more
prefer--and are willing to spend more
money on--products they perceive as
money on--products they perceive as
environmentally safe
environmentally safe
 More than half of American
More than half of American
consumers have purchased a product
consumers have purchased a product
because of a label that said it was
because of a label that said it was
environmentally safe or
environmentally safe or
biodegradable
biodegradable

5. Are there problems of deception
Are there problems of deception
with “green” claims?
with “green” claims?
 Keyes
Keyes Fibre
Fibre Company's
Company's claims for Chinet
claims for Chinet
disposable tableware
disposable tableware
• biodegradable
biodegradable
• compostable in municipal solid waste
compostable in municipal solid waste
composting facilities
composting facilities
• Recyclable
Recyclable

In fact, according to the FTC
In fact, according to the FTC
• Won’t degrade in landfill
Won’t degrade in landfill
• Few municipal composting facilities
Few municipal composting facilities
• No facilities accept it for recycling
No facilities accept it for recycling

6. Why are consumers fooled by such
Why are consumers fooled by such
claims?
claims?

consumers generally can't tell
consumers generally can't tell
whether a product will do what the
whether a product will do what the
advertiser claims
advertiser claims
• degrade in a landfill
degrade in a landfill
• not deplete the ozone layer
not deplete the ozone layer

even if the claims are true, it may
even if the claims are true, it may
not be evident for five, ten, fifty or
not be evident for five, ten, fifty or
more years
more years

7. 
As a result of concerns about
As a result of concerns about
growing use of such claims, the FTC
growing use of such claims, the FTC
issued Guides for the Use of
issued Guides for the Use of
Environmental Marketing Claims
Environmental Marketing Claims

8. What do the Guides cover?
What do the Guides cover?
Any way in which a message can be
Any way in which a message can be
received
received

labeling
labeling

advertising
advertising

promotional materials
promotional materials

9. Any form a message can take
Any form a message can take

words
words

symbols
symbols

emblems
emblems

logos
logos

depictions
depictions

product brand names
product brand names

10. 260.6 General Principles
260.6 General Principles
(a) Any qualifications or disclosures
(a) Any qualifications or disclosures
should be sufficiently clear,
should be sufficiently clear,
prominent and understandable to
prominent and understandable to
prevent deception
prevent deception
(b) Claim should make clear whether it
(b) Claim should make clear whether it
applies to the product or the package
applies to the product or the package
(c) Claims should not overstate the
(c) Claims should not overstate the
environmental attribute or benefit
environmental attribute or benefit

11. 260.7 Environmental Marketing
260.7 Environmental Marketing
Claims
Claims
(a) General claims (e.g., “eco-safe”)
(a) General claims (e.g., “eco-safe”)
must be
must be

not misleading
not misleading

substantiated in advance of the claim
substantiated in advance of the claim
• burden of proof on advertiser
burden of proof on advertiser

12. (b) Claims of degradability,
(b) Claims of degradability,
biodegradability, and photodegradability
biodegradability, and photodegradability

are deceptive unless there is
are deceptive unless there is
scientific evidence that the entire
scientific evidence that the entire
product or package will
product or package will completely
completely
break down and return to nature (i.e.
break down and return to nature (i.e.
decompose) within a reasonably
decompose) within a reasonably
short period of time
short period of time

13. (c) Claims of compostability (of the
(c) Claims of compostability (of the
product or package)
product or package)

are deceptive unless all the materials
are deceptive unless all the materials
in the product or package will break
in the product or package will break
down into usable compost in a safe
down into usable compost in a safe
and timely manner
and timely manner
• in an appropriate composting facility; or
in an appropriate composting facility; or
• a home compost pile
a home compost pile

14. 
are deceptive if
are deceptive if
• the item is not compostable in a home
the item is not compostable in a home
compost pile; and
compost pile; and
• there are no institutional or municipal
there are no institutional or municipal
composting facilities in the community
composting facilities in the community
where the item is sold
where the item is sold

15. (d) Claims of recyclability
(d) Claims of recyclability

are deceptive unless the product or
are deceptive unless the product or
package can be collected, separated or
package can be collected, separated or
otherwise recovered from the solid waste
otherwise recovered from the solid waste
stream
stream
• for reuse; or
for reuse; or
• in the manufacture or assembly of another
in the manufacture or assembly of another
package or product
package or product
• through an established recycling program
through an established recycling program

16. 
If only part of a package or item is
If only part of a package or item is
recyclable, any claim of recyclability
recyclable, any claim of recyclability
must be adequately qualified to
must be adequately qualified to
avoid consumer deception
avoid consumer deception

A claim of recyclability is not
A claim of recyclability is not
deceptive if only minor, incidental
deceptive if only minor, incidental
components are non-recyclable
components are non-recyclable

17. 
Claims of recyclability have unique
Claims of recyclability have unique
potential for deception because
potential for deception because

not all communities have recycling
not all communities have recycling
facilities
facilities

not all facilities recycle the same
not all facilities recycle the same
products and packages
products and packages

18. As a general rule, use of the term "recyclable"
As a general rule, use of the term "recyclable"
and/or use of symbols that imply recyclability are
and/or use of symbols that imply recyclability are
deceptive
deceptive
 unless collection sites for recycling the material
unless collection sites for recycling the material
are available to a
are available to a substantial majority of
substantial majority of
consumers or communities
consumers or communities
 even if collection sites are established in a
even if collection sites are established in a
significant percentage of communities or
significant percentage of communities or
available to a significant percentage of the
available to a significant percentage of the
population
population
 unless the claim is qualified to indicate the limited
unless the claim is qualified to indicate the limited
availability of recycling programs
availability of recycling programs

19. Symbols that imply recyclability include
Symbols that imply recyclability include

three chasing arrows
three chasing arrows
• FTC Guide says that, unless qualified, it means
FTC Guide says that, unless qualified, it means
product or package is made of
product or package is made of recycled
recycled
materials as well as being recyclable
materials as well as being recyclable

SPI symbol
SPI symbol
• code developed by the Society of the Plastics
code developed by the Society of the Plastics
Industry to indicate the type of plastic from
Industry to indicate the type of plastic from
which product is made
which product is made
• numbers run from 1 to 7
numbers run from 1 to 7

20. Qualifications that adequately notify
Qualifications that adequately notify
consumers of limited availability of
consumers of limited availability of
recycling programs include
recycling programs include
 "This bottle may not be recyclable in your
"This bottle may not be recyclable in your
area"
area"
 "Recyclable in the few communities with
"Recyclable in the few communities with
facilities for foam polystyrene cups"
facilities for foam polystyrene cups"
 providing the approximate number or
providing the approximate number or
percentage of communities or population
percentage of communities or population
to whom programs are available
to whom programs are available

21. (h) Claims relating to the preservation
(h) Claims relating to the preservation
of the ozone layer
of the ozone layer

For example:
For example:
• ozone safe
ozone safe
• ozone friendly
ozone friendly
• contains no CFCs
contains no CFCs

are deceptive if the product contains
are deceptive if the product contains
any ozone-depleting substance
any ozone-depleting substance

22. 
Problem: all ozone is not alike:
Problem: all ozone is not alike:

ozone layer in upper atmosphere is
ozone layer in upper atmosphere is
necessary to prevent sun's harmful
necessary to prevent sun's harmful
radiation from reaching earth
radiation from reaching earth

ozone at ground level forms smog
ozone at ground level forms smog
• can cause serious breathing problems
can cause serious breathing problems

"ozone safe" products should not
"ozone safe" products should not
harm the atmosphere at either level
harm the atmosphere at either level

23. Green Power
Green Power

Green marketing heavily used in
Green marketing heavily used in
electricity generation/marketing
electricity generation/marketing

What is green power?
What is green power?

electric power that is
electric power that is
• generated by renewable resources
generated by renewable resources
• less polluting than fossil fuels and
less polluting than fossil fuels and
nuclear power
nuclear power

24. What types of power are “green”?
What types of power are “green”?

Wind
Wind

Bioenergy
Bioenergy

Geothermal energy
Geothermal energy

Solar power
Solar power

Hydroelectric power
Hydroelectric power

25. Why is green power attractive to
Why is green power attractive to
consumers?
consumers?
 Electricity generation is largest industrial
Electricity generation is largest industrial
polluter in US; currently produces:
polluter in US; currently produces:
 two-thirds of the annual U.S. emissions of
two-thirds of the annual U.S. emissions of
sulfur dioxide (main cause of acid rain)
sulfur dioxide (main cause of acid rain)
 30 percent of the nitrogen oxide emissions
30 percent of the nitrogen oxide emissions
(stress forest ecosystems; combine with
(stress forest ecosystems; combine with
organic compounds in sunlight to form
organic compounds in sunlight to form
smog)
smog)
 40 percent of carbon dioxide emissions
40 percent of carbon dioxide emissions
 toxic-metal emissions (mercury and lead)
toxic-metal emissions (mercury and lead)
 nuclear waste.
nuclear waste.

26. What are the “dirtiest” energy
What are the “dirtiest” energy
sources?
sources?

Coal
Coal

Oil
Oil

Nuclear power
Nuclear power

Natural Gas
Natural Gas

27. What are the green power options?
What are the green power options?
1. Green Pricing
1. Green Pricing
 Consumers do not have to change their
Consumers do not have to change their
electricity provider
electricity provider
 Customers choose to pay a premium on
Customers choose to pay a premium on
their electricity bill to cover the extra cost
their electricity bill to cover the extra cost
of purchasing clean, sustainable energy
of purchasing clean, sustainable energy
 As of March 2003, more than 300
As of March 2003, more than 300
electricity providers in 32 states have
electricity providers in 32 states have
implemented green pricing options or
implemented green pricing options or
announced plans to do so
announced plans to do so

Green Mountain Power’s
Green Mountain Power’s Coolhome
Coolhome,
,
Coolbusiness
Coolbusiness

28. 2. Green Marketing
2. Green Marketing
 Sale of green power in competitive
Sale of green power in competitive
markets; consumers have option to
markets; consumers have option to
choose among suppliers and service
choose among suppliers and service
offerings
offerings
• like choosing long-distance telephone carriers
like choosing long-distance telephone carriers
 As of October, 2003 green marketing was
As of October, 2003 green marketing was
available in nine states
available in nine states
• all in the northeast except Texas
all in the northeast except Texas
• not in Vermont
not in Vermont

29. 3. Green Tags
3. Green Tags
 Tradable Renewable Certificates (TRCs) represent
Tradable Renewable Certificates (TRCs) represent
the environmental (non-power) attributes or
the environmental (non-power) attributes or
benefits of renewable electricity generation
benefits of renewable electricity generation
 consumer pays for the benefit of adding clean,
consumer pays for the benefit of adding clean,
renewable energy generation to the regional or
renewable energy generation to the regional or
national electricity grid
national electricity grid
 provides same environmental benefit as
provides same environmental benefit as
purchasing green pricing or green marketing
purchasing green pricing or green marketing
product
product
 provide “green” option for people in states where
provide “green” option for people in states where
green pricing/marketing not available
green pricing/marketing not available

30. Consumer Protection Issues in
Consumer Protection Issues in
Green Power
Green Power
 When power flows from the generator
When power flows from the generator
to your house, electrons get mixed
to your house, electrons get mixed
together on the wires
together on the wires
• You can't specify which electrons you get
You can't specify which electrons you get
• you can't know for sure if they are being
you can't know for sure if they are being
generated by "green" power sources
generated by "green" power sources
 A number of mechanisms have been
A number of mechanisms have been
established to avoid consumer
established to avoid consumer
deception
deception

31. 1. Voluntary certification
1. Voluntary certification

Green-e
Green-e

Establishes consumer protection and environmental
Establishes consumer protection and environmental
standards for electricity products, and verifies that these
standards for electricity products, and verifies that these
products meet the standards.
products meet the standards.

Standards include:
Standards include:

50% or more of the electricity supply comes from one or
50% or more of the electricity supply comes from one or
more of these eligible renewable resources: solar, wind,
more of these eligible renewable resources: solar, wind,
geothermal, biomass, and small or certified low-impact
geothermal, biomass, and small or certified low-impact
hydro facilities
hydro facilities

if a portion of the electricity is non-renewable, the air
if a portion of the electricity is non-renewable, the air
emissions are equal to or lower than those produced by
emissions are equal to or lower than those produced by
conventional electricity
conventional electricity

there are no specific purchases of nuclear power, and
there are no specific purchases of nuclear power, and

the product meets the Green-e
the product meets the Green-e new renewable
new renewable requirement
requirement

32. 2. State standards
2. State standards
 In 2002 Illinois established a "green power
In 2002 Illinois established a "green power
standard" for green power claims. The standard
standard" for green power claims. The standard
establishes three tests:
establishes three tests:
 100% of the power must come from new clean
100% of the power must come from new clean
power sources (i.e., coming online after January 1,
power sources (i.e., coming online after January 1,
2002)
2002)
 at least 2/3 of the power must be produced by wind
at least 2/3 of the power must be produced by wind
or solar energy, with the remainder from other
or solar energy, with the remainder from other
renewable energy sources such as landfill gas,
renewable energy sources such as landfill gas,
small hydro, and biopower
small hydro, and biopower
 the power purchase must create clear air quality
the power purchase must create clear air quality
benefits for the Illinois airshed
benefits for the Illinois airshed

33. 3. National Association of Attorneys
3. National Association of Attorneys
General (NAAG)--Environmental
General (NAAG)--Environmental
Marketing Guidelines for Electricity
Marketing Guidelines for Electricity
 Provisions include:
Provisions include:
 term "green" and other similarly general
term "green" and other similarly general
statements of environmental benefit should be
statements of environmental benefit should be
used with caution; every implied representation
used with caution; every implied representation
of environmental benefit must be substantiated
of environmental benefit must be substantiated
 term "clean energy" means energy whose
term "clean energy" means energy whose
generation does not cause significant emissions
generation does not cause significant emissions
 a "renewable" energy source is one which is
a "renewable" energy source is one which is
naturally replenishable and is replenished on
naturally replenishable and is replenished on
some reasonable time frame
some reasonable time frame

34. Green Power in Vermont
Green Power in Vermont

Apparently the only green power option
Apparently the only green power option
available in Vermont is Green Mountain
available in Vermont is Green Mountain
Power's
Power's Cool Home
Cool Home project
project

Customers make a $6 monthly tax-
Customers make a $6 monthly tax-
deductible contribution to the non-profit
deductible contribution to the non-profit
group Clean Air-Cool Planet
group Clean Air-Cool Planet

through the Vermont-based group
through the Vermont-based group
NativeEnergy
NativeEnergy, new renewable energy
, new renewable energy
projects are developed
projects are developed
• wind farms
wind farms
• farm methane systems
farm methane systems