The Federal Trade Commission has proposed revisions to the guidance that it gives marketers to help them avoid making misleading environmental claims, saying that the proposed changes should make it easier for companies to abide by the agencies Green Guides.
The Green Guides, which were last revised in 1998, include guidance as related to general principles that apply to all environmental marketing claims, how consumer are likely to interpret particular claims and how marketers can substantiate these claims, and how marketers can qualify their claims to avoid deceiving consumers.
The proposed changes include new guidance on marketers’ use of product certifications and seals of approval, “renewable energy” claims, “renewable materials” claims, and “carbon offset” claims.
The revised Guides caution marketers not to make blanket, general claims that a product is “environmentally friendly” or “eco-friendly” because the FTC’s consumer perception study confirms that such claims are likely to suggest that the product has specific and far-reaching environmental benefits. The agency said very few products, if any, have all the attributes consumers seem to perceive from such claims.
The proposed Guides also caution marketers not to use unqualified certifications or seals of approval those that do not specify the basis for the certification. The Guides more state that unqualified product certifications and seals of approval likely constitute “general environmental benefit claims”, and they advise marketers that the qualifications they apply to certifications or seals should be “clear, prominent, and specific.”
Next, the proposed revised Guides advise marketers how consumers are likely to understand certain environmental claims, including that a product is degradable, compostable, or “free of” a particular substance.
The FTC says its research suggests that consumers could be misled by these claims because they interpret them differently than marketers intend. Because of this, the Guides advise marketers to provide specific information about the materials and energy used. Moreover, marketers should not make unqualified renewable energy claims if the power used to manufacture any part of the product was derived from fossil fuels.
The proposal also provide new advice about carbon offset claims. Carbon offsets fund projects that reduce greenhouse gas emissions in one place in order to counterbalance or “offset” emissions that occur elsewhere. The Guides advise marketers to disclose if the emission reductions that are being offset by a consumer’s purchase will not occur within two years. They also advise marketers to avoid advertising an offset if the activity that produces the offset is already required by law.
