Companies On Notice As FTC Turns Its Attention To Green Washing
By Scott Kriner, Green Metal Consulting
In the world of sustainability, we are all familiar with the claims of manufacturers that their product is “green” or “environmentally friendly”. Oh really?? Just what do those claims mean? This is the essence of what is commonly referred to as green washing. If everything is “green”, then in reality nothing is “green”. Products are often marketed with eco-labels of some sort to imply credible environmental claims. These types of labels now number over 600 worldwide. Some of the more common labels include Energy Star, Green Seal and Ecologo.
Environmental marketing claims are only useful to consumers when they are true. But how can we know if the information is true? Don’t worry… the government is here to help. The Federal Trade Commission (FTC) provides guidance on these types of marketing claims. The FTC first issued the Guides for the Use of Environmental Marketing Claims, otherwise known as the Green Guides, in 1992. Those guidelines provided general principles that helped marketers avoid making deceptive or unfair claims under Section 5 of the FTC Act 15 U.S.C.45. The guidelines also offered information on how reasonable consumers are likely to interpret certain claims. In most cases, the confusion can be avoided by substantiating or qualifying the claims with third party validation, test standards, and specific performance information.
The FTC Green Guides were subsequently revised in 1996 and again in 1998. Until just recently, the Green Guides remained unchanged, despite the explosion of eco-labeling and claims on just about every consumer and business-to-business product on the market. Over that 12 year period, consumers have become increasingly interested in the environmental impacts or attributes of the products or services that they purchase. To respond to that growing concern, in October of this year the FTC issued a revised draft of their Green Guides. Public comments on the proposed draft are required before December 10, 2010.
Some of the proposed changes in the current draft include avoiding general environmental benefit claims, and providing certifications and/or seals of approval. An example of a general environmental benefit is the simple use of the word “green” or “eco-friendly” without the word being better qualified. Such terms are often very difficult to substantiate, and as a result the FTC is suggesting that they not be used.
A new section of the proposed draft of Green Guides covers the use of certifications or seals as endorsements covered by the Commission’s Endorsement Guides. The draft contains examples of where these Guides can apply to environmental claims. If a certification or seal is used that does not state the basis for certification, marketers are being asked to clearly describe the particular attribute or claim on the product and have it substantiated. In other words, third party certification alone does not remove the obligation of a marketer to substantiate all conveyed claims.
Another area that is addressed in the proposed draft covers recyclable claims. The FTC is suggesting a three-tiered analysis of how to claim recyclable. The first tier is whether a “substantial majority” of consumers or communities have access to recycling facilities. If so, an unqualified claim can be made regarding a product being recyclable. The second tier is whether a “significant percentage” of consumers or communities have access to recycling facilities. If this criterion is met, the marketer is advised to qualify any recyclable claim by, for example, noting that the product may not be recyclable in a specific region or area. The third tier is whether less than a “significant percentage” of consumers or communities have access to recycling facilities. If this is the case, the marketer is advised to qualify the recyclable claim by, for example, noting that the product is only recyclable in a few communities.
A new set of guidelines is being proposed that addresses claims about products made with renewable materials and renewable energy. In both cases, the FTC is advising that marketers need to qualify any such claims with specific information about the material and/or the energy used to manufacture the product.
So what does this mean to the metal construction industry? It certainly means that the FTC will be watching out for unqualified general claims of environmental performance. It also means that a product carrying a label that implies third party validation is not enough in the eyes of the FTC. Third party organizations like UL Environment and ICC-ES Sustainable Attributes Verification and Evaluation program (SAVE™) will likely be looking for opportunities to work with manufacturers to validate, verify, or certify environmental performance claims. But along with that verification the manufacturer will now have to also substantiate the claims.
It’s doubtful that the updated FTC Green Guides put an end to all “green washing”. But given the fact that the FTC has already levied hefty fines against some companies violating the FTC Act 15, it is safe to say that Big Brother will be watching more closely.
Scott Kriner, MCA's Technical Director, is the president and founder of Green Metal Consulting Inc. He is a LEED Accredited Professional who began his career in the metal construction industry in 1981. His company is a member of the U.S. Green Building Council, the California Association of Building Energy Consultants and the Residential Energy Services Network (RESNET). Scott can be reached by email at skriner1@verizon.net, or by phone at (610) 966-2430. You can also visit him on the web at www.greenmetalconsulting.com.
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