FTC Regulations for Environmental Marketing

The announcement comes a week after the release of a report from TerraChoice Environmental Marketing showing that the vast majority of green marketing claims are inaccurate or inappropriate.

The firm researched more than 1,000 consumer products with environmental claims and found that all but one violated at least one of the report's "Six Sins of Greenwashing."

Current FTC Regulations for Environmental Claims

Issued in 1992, the FTC Guidelines for Environmental Marketing Claims or "Green Guides" do not constitute a labeling system as such, but they are designed to have an effect on labeling. The guidelines are intended to prevent false or misleading use of advertising claims such as "environmentally friendly," "degradable," and "recyclable." Confusion over the meaning of such terms affected not only consumers but also companies, who were concerned about lawsuits over their environmental claims.

The Guides outlined four general principles for environmental claims:

• qualifications and disclosures should be sufficiently clear and conspicuous to prevent deception;
• claims should make clear whether they apply to the product, packaging, or just a component of either;
• claims should not overstate environmental benefits; and
• comparative claims should be presented in such a way that the basis for comparison is clear.

The guides also addressed claims concerning

• environmental friendliness
• degradability
• compostability
• recyclability
• recycled content
• source reduction
• refillability, and
• ozone friendliness