Tuesday, April 29, 2014

The Federal Trade Commission Brings Justice Down on the Fakers: Green Guides of the USA


For this blog post, I want to address the Federal Trade Commission (FTC) and its stance on green washing and some related cases that fell into its jurisdiction. On a side note, the FTC is celebrating 100 years in operation! Congrats. 

The FTC created its Green Guides in the early nineties, and recently updated them last fall.
The guidelines “help marketers avoid making environmental marketing claims that are unfair or deceptive…and the Commission can take action under this Act if a marketer makes an environmental claim inconsistent with the guides.” (FTC.gov)

It is incredible how vigilant consumers must be in the green market. In this realm, claims with no scientific backing as well contradictory information fly overhead. Hard-to-find information on dense product websites that disputes the ad itself are likely only a few tactics marketers have up their sleeves. Here I provide three cases that all made their way into the crosshairs of the FTC, and in each case, the punishments enacted were settlements - $16,000. Weak? Perhaps. 

CASE 1: gDiapers make biodegradable claims

Portland-based company Down to Earth Designs and its products gDiapers and gWipes, were cited by the FTC for claiming its diaper (composed of three parts) had no plastic components, and that the diapers and wipes were 100% biodegradable.  The FTC shot back that the products, “are not biodegradable because they do no completely break down and decompose into elements found in nature within one year after customary disposal, which is in the trash” (FTC.gov)

One of the key aspects to note with this case in particular is the claim of the defendant of compostability at home. For those who understand composting, ( a practice that can be wildly confusing actually, and don't get me started on the poor signage surrounding public composting operations) one of the main precautions about home composting is never to compost solid waste, such as poop. The diaper packaging attempted to specify this and spoke of limitations to this in its website – but the FTC ruled that these attempts were not apparently not conspicuous enough.

(https://www.consumer.ftc.gov/blog/time-change-gdiapers-product-claims)

Press release to gDiapers

Settlement:

CASE 2:  N.E.W. Plastics Corp and recycled claims on plastic lumber products


Wisconsin-based plastic lumber production company had to remove its claims of its products being recyclable and having recycled content. In this case, the FTC cited the business and its marketing faux pas: “the FTC bars N.E.W. from making unqualified recyclable claims about any product or package, unless the product or package can be recycled in an established recycling program, and such facilities are available to at least 60 percent of consumers or communities where the product or package is sold” (FTC.gov)

Basically, if it is difficult for a consumer to find out exactly where to recycle a product, you cannot claim that a product is 100% recyclable. 


(N.E.W. Plastics Corps)

CASE 3: Three Companies barred from advertising mattresses as free from Volatile Organic Compounds without scientific evidence to back up claims

As the headline states, three mattress makers were cited at once as advertising their products to be free from the harmful compounds that can be emitted from certain products and inhaled, these are the VOCs, or Volatile Organic Compounds. When the rubber hit the road however, they could not produce the scientific evidence to prove it. Even more telling, is the fake certification of being all natural that one of the companies awarded itself, claiming it was from a third party group, though the company created the certification in-house. 

This is a problem not limited to mattresses - personal care products are also unregulated with terms like 'natural' and 'organic', and often make up confusing labels that they say come from a third party. At this time, the term organic is not limited to use by products meeting the USDA's certification standards, though groups are working to fix this loophole (Organic Consumers Association, 2014). 



(How VOCs move from foam pads into the human body - babies are particularly susceptible as they spend over 50% of their time sleeping. http://blog.omimattress.com/category/voc/)

The three cases highlight the specific ways marketers can green wash their products to consumers, whether they know it or not. The first two cases demonstrate claims in ads that are hard for consumers to find out about from the company themselves, while the third specifically cites a lack of scientific evidence in the claims of the company’s ads.

Buyer beware.




sources:

Federal Trade Commission (2013). Guides for the use of environmental marketing claims. Retrieved from: http://www.ftc.gov/sites/default/files/attachments/press-releases/ftc-issues-revised-green-guides/greenguides.pdf

Federal Trade Commission (2013). N.E.W. plastics corp. Retrieved from http://www.ftc.gov/system/files/documents/cases/140221newplasticscmpt.pdf

Federal Trade Commission (2013). Ecobaby organics inc. Retrieved from http://www.ftc.gov/sites/default/files/documents/cases/2013/07/130725ecobabycmpt.pdf

Organic Consumers Association (2014). Retrieved from: http://www.organicconsumers.org/bodycare/index.cfm


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