Pollution Engineering - November 2008 - (Page 15)

LEGALLOOKOUT By Lynn L. Bergeson Green Marketing Claims: FTC Enters the Fray While most would agree that green sells, there is less consensus on the veracity of most marketing claims. G reen sells. Consumers spent $54 million in 2007 on carbon credits to offset greenhouse gas emissions. But not every dollar made on green claims was necessarily backed by green action. This article discusses green marketing claims, the Federal Trade Commission’s (FTC) Green Guides, and why the commission believes change may be needed. Key issues and next steps The FTC is reviewing the many comments it has received over the course of the past months in connection with the public meetings on various aspects of the Guides. The commission also is reviewing carbon neutrality issues. According to the FTC, carbon offset and Background According to a 2007 report by TerraChoice Environmental Marketing Inc., most environmental marketing claims are either false or “risk misleading intended audiences.” In the report, the company identified six “sins” or problems with green claims: (1) the hidden tradeoff by suggesting that a product is green based upon a single environmental attribute; (2) lack of proof to substantiate the claim; (3) claims that are inherently vague and are likely to be misunderstood by the public; (4) claims that are irrelevant to their respective products; (5) claims that are true, but distract purchasers from a product’s true problems; and (6) claims that misuse or misrepresent certification standards offered by independent authorities. Given all the interest in green marketing, the FTC, the federal agency tasked with monitoring and preventing unfair and deceptive practices in the market, announced last year it would review its Guides for the Use of Environmental Marketing Claims, commonly known as the Green Guides, with a focus on claims regarding carbon offsets, renewable energy certificates, environmental packaging claims and green building issues. Under the FTC Act, all marketers making express or implied claims about the attributes of their products must have a reasonable basis for their claims. What constitutes a reasonable basis is somewhat fluid, but generally requires competent and reliable scientific evidence. On Nov. 27, 2007, the FTC announced that it is beginning a regulatory review of the Guides. In a related notice issued that same day, the FTC announced that it would hold a public workshop on several green marketing topics. It has followed through with events in January, March and June, and is expected to issue revised guidance in the future. “ According to the FTC, carbon offset and REC marketing activities raise important consumer protection issues. renewable energy certificate (REC) marketing activities raise important consumer protection issues. The FTC is unsure how consumers know what they are actually buying, or how consumers interpret expressed or implied claims about the environmental benefits from offsets and RECs. Green claims will continue to proliferate. The FTC is committed to ensuring that green claims are not false or deceptive, and help to fulfill their laudable environmental goals. Given the significant amount of marketing clout that green claims command, the FTC, related federal, state and private entities will have their hands full for the foreseeable future. PE ” Lynn L. Bergeson is managing director of Bergeson & Campbell, P.C., a Washington, D.C., law firm focusing on conventional and engineered nanoscale chemical, pesticide, and other specialty chemical product approval and regulation, environmental health and safety law, chemical product litigation, and associated business issues, and President of The Acta Group L.L.C. and The Acta Group EU Ltd. with offices in Washington, D.C., and Manchester, U.K. Visit www.pollutionengineering.com and electronically forward a copy of this article to a colleague or customer. NOVEMBER2008 www.pollutionengineering.com 15 http://www.pollutionengineering.com http://www.pollutionengineering.com

Table of Contents Feed for the Digital Edition of Pollution Engineering - November 2008

Pollution Engineering - November 2008 Contents The Editor's Desk EnviroNews PE Events Legal Lookout Casebook Canada Environment Management The Green Files Waste Island Phase I ESAs and Vapor Intrusion Meeting the Mercury Target Wet ESPs - The Sky's the Limit Most Successful IFAT China Ever Thermoplastic to the Rescue Install a Trench Without Open Excavations Remediate Impacted Soils Without Accumulation of Metabolites Apply an Alternative to Wet ESP Solve These Common Pump Problems Minimize Risks Handling Ammonia Monitor International Regulatory Developments for Audits Skim Oil and Save Prevent Chemical Vapor Intrusion Spill Control and Containment Products Pumps and Systems Equipment PE Products Classified Marketplace Advertisers Index State Rules

Pollution Engineering - November 2008

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