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No Need to Be Blue About Green Marketing
Today, more Americans than ever take into account the environmental impact of their purchasing decisions. This has not gone unnoticed by manufacturers, distributors, re-sellers and advertisers of all types. Accordingly, “green marketing” has surged in the past few years. Companies in many industries now regularly tout the environmentally friendly attributes of their products, services and packaging. But, as with any good marketing idea, in-house counsel must be vigilant in ensuring that the advertising and marketing claims that their company is making pass legal muster.
Failing to ensure legal compliance when making green claims in advertising can have serious consequences for a company ' not the least of which is scrutiny from the Federal Trade Commission (FTC). False or deceptive advertising violates the FTC Act, and can bring about civil penalties. An FTC investigation can consume enormous resources ' both money and time. It is also never good business to be on the FTC's radar and labeled as having deceived customers.
Green marketing claims have evolved over time. To address these new claims, as well as clarify previous guidance, the FTC revised its Guides for the Use of Environmental Marketing Claims (www.ftc.gov/os/fedreg/2012/10/greenguidesfrn.pdf). Colloquially referred to as the “Green Guides,” they represent the latest in FTC thinking regarding the appropriateness of making certain claims related to environmental benefits.
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