General Environmental Benefit Claims – The new Green Guides specifically state that companies should avoid making “unqualified general environmental benefit claims because they are likely difficult to substantiate.” The FTC advises companies that they “use clear and prominent qualifying language to convey that a general environmental claim refers only to a specific and limited environmental benefit(s).” For example, if a business was to advertise that a product was manufactured in a facility that is powered by solar power, the business should not market the product as being made with “green” energy or “clean” energy. Instead, the business or marketer should provide the appropriate qualifier to the general environmental claim (e.g., the product is made with solar powered energy).
Carbon Offsets – The new section on carbon offsets cautions marketers not to advertise carbon offsets when the activity that forms the basis of the offset is required by law.
Certifications and Seals of Approval – The Green Guides provide that it is deceptive to misrepresent that a product or service is endorsed or certified by an independent third party.
Free-of Claims – For the first time, the Green Guides provide guidance as to when it is deceptive to misrepresent, directly or by implication, that a product, package, or service is free of a chemical or ingredient that may be a concern to the environment.
Renewable Energy Claims – With regard to renewable energy, the FTC advises that consumers are likely to interpret the use of the term “renewable” differently than what is intended by marketers. Marketers are encouraged to minimize the risk of deception by specifying the source of the renewable energy, (e.g. solar or wind energy).
Renewable Materials Claims – As with other claims, the new Green Guides advise that claims – both implied and express – that a material is renewable, be substantiated. Marketers are advised to “clearly and prominently” qualify renewable materials claims. Further qualification is required for products that contain less than 100 percent renewable materials.
Recent Enforcement Actions
In late October 2012, the FTC announced the first enforcement settlements since finalizing the Green Guides. These latest settlements involved “free of” claims made by two US paint companies. According to the FTC, by labeling paints as “VOC free” or containing “Zero VOCs,” two paint companies had misled consumers to believe their paints were free of volatile organic compounds (VOCs) when the paints at issue actually contained more than trace amounts of VOCs. See In the Matter of The Sherwin-Williams Company, FTC File No. 112 3198; and In the Matter of PPG Architectural Finishes, Inc., FTC File No. 112 3160.
