5. Potential Legal Trouble for
Greenwashers
Section 5 of the Federal Trade
Commission Act (the “FTC Act”)
The Lanham Act
Common law
State deceptive trade practices acts
The Securities and Exchange Act
6. Section 5 of the FTC Act
Prohibits unfair or deceptive trade
practices
Deceptive practice:
likely to mislead reasonable consumers
material to their decision to buy or use the products
Unfair practice:
causes substantial consumer industry
not reasonably avoidable
not outweighed by the benefits to consumers or
competition
7. The FTC’s Green Guides
General principles applying to all
environmental marketing claims
truthful
accurate
fully substantiated
Guidance on specific green claims
biodegradable, compostable, recyclable, recycled
content, and ozone safe
Administrative Interpretations
8. Updated Green Guides
“Because of the proliferation of
green claims in the marketplace…”
“changes in the marketplace” and
“consumer perception of
environmental claims”
Workshops
carbon offsets and renewable energy certificates
green packaging claims
green building and textiles
9. Enforcement Actions Imminent
No enforcement actions for environmental
claims since 2000
Currently investigating a variety of
environmental product claims
Violations can result in:
civil penalties
criminal penalties
injunctive relief
restitution
10. Only .05% of green advertisements (1
in 1753) are not either patently false
or risk misleading audiences*
* according to GreenBiz.com
11. How to Avoid Greenwashing?
Tell the Truth
Be Accurate
Prove It
Look for Concerns