an overview of recent revisions to ftc green guides
DESCRIPTION
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.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 FeesStill 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
Action can be taken under FTC Actbut
Four Key PrinciplesGreen Guides comprised of
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
Qualify statements
Don’t overstate benefits
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
Specify whether comparing to your previous product or competitor product
Make basis of comparison clear
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 OffsetsCarbon Offsets
Properly quantified by reliable methods
Must occur within 2 years
Deceptive if required by law
Certifications and LabelsCertifications & Seals
Label itself must meet FTC guidelines and principles
Does not eliminate obligation to substantiate claims
Label itself must meet FTC
guidelines and principles
Fully qualified
Compostable claimsCompostable
Qualify claims if it can’t be composted at home
Must compost in reasonable time
Accurately describe benefits of disposal in landfill
Must decompose within 1 year
Degradable claimsDegradable
“Degradable” in landfill is deceptive
Must decompose within 1 year
Must decompose in customary disposal environment
“…false and unsubstantiated claims that their American Fare paper products were ‘biodegradable’…”
Qualified
Refillable claimsFree of / Non-Toxic
Must not contain other substances that pose an environmental risk
Substance must never have been associated with product
Recyclable claimsRecyclable
All components must be equally recyclable
Must be recyclable in market
Must specify if recycling not available in market
Must specify if recycling not available in market
Recycled content claimsRecycled 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 ClaimsMade with Renewable Energy
Deceptive if any part manufactured with fossil fuel-derived power
New Category
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-friendlyOzone-Safe / Ozone-Friendly
List of substances governed by EPA
MUST be safe to the ozone layer
Your Turn
It’s all about the matrix.
Size doesn’t matter. Really.
Don’t be stupid.
What will a reasonable (read: squeaky wheel) think?
For more information or to download this presentation, please visit:
www.gbb.org/lohas_ftc