The Federal Trade Commission (FTC) is considering changes to its Green Guides, a guidance document for how businesses should qualify environmental claims about their products or services so that these claims do not deceive consumers. Lawsuits and enforcement actions about false environmental claims that rely on the guides are already on the rise—if the FTC expands the guides or makes them enforceable, we can expect this trend to increase. Businesses should familiarize themselves with the guides, and ensure their environmental claims are compliant.
The guides are non-binding guidelines to help businesses avoid making “unfair” or “deceptive” environmental benefit claims. An environmental benefit claim is any direct or implicit claim made to an individual or another business about the environmental attributes of a product, package, or service. The guides apply to claims made in almost any form, including labels, advertisements, symbols, logos, and product brand names. If you advertise on social media with words like “renewable” or “eco-friendly,” if a recycling symbol appears on your product, or even if you just have a logo with green font, the guides apply.
When making an environmental benefit claim, the guides advise businesses to think carefully about whether a consumer can clearly interpret it. For example, if a business puts a “recyclable” label on a plastic package containing a shower curtain without explanation, the guides state that this...
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