The FTC's Revised Green Guides: What Your Marketing Team Needs to Know

Transcription

1 The FTC's Revised Green Guides: What Your Marketing Team Needs to Know Laura Koss David Mallen Scot Case Federal Trade Commission November 6, :00-3:00p.m. ET

2 Laura Koss Senior Attorney Federal Trade Commission

3 THE GREEN GUIDES Issued in 1992 to help marketers in making nondeceptive green claims Latest review Final Guides issued in October 2012

4 GENERAL GREEN GUIDES PRINCIPLES Consumer perception controls. Don t overstate attributes. Use clear, prominent qualifications. Be specific Beware of implied claims.

5 TYPES OF MARKETING CLAIMS General benefits, Certifications Degradable Compostable Recycled content, Recyclable Source reduction Free-of, Non-toxic Ozone safe/ozone friendly Renewable energy, materials Carbon Offsets Refillable

6 LATEST REVIEW THE FINAL GUIDES Additions that strengthen, expand original Guides General benefit claims Certifications, Seals of approval New guidance on emerging claims Renewable materials, energy Areas where Commission did not provide guidance Sustainable Organic Natural

7 STUDY: GREEN OR ECO-FRIENDLY 52% - Product had specific green attributes. Made with recycled materials 61% Recyclable 59% Made with renewable materials 54% Biodegradable 53% 27% - Product had no negative environmental impact.

8 FINAL GUIDES BEWARE GENERAL CLAIMS Highly unlikely marketers can substantiate all reasonable interpretations of these claims. Marketers should not make unqualified general environmental benefit claims.

9 QUALIFICATIONS USE CAUTION Clear and prominent. Limit claim to a specific benefit(s). Evaluate trade-offs No negligible benefits Environmentally Improved; Now with 30% less plastic than before!

10 NEW: CERTIFICATIONS/LOGOS/SEALS Endorsements Need substantiation General environmental benefit claim Clear and prominent qualification: Refers only to specific, limited environmental benefit

11 . GreenLogo For Environmental Excellence

12 . ACME Paint s Own GreenLogo For Environmental Excellence Low VOCs

13 QUALIFYING A MULTI-ATTRIBUTE CLAIM Virtually all products impact the environment. For details on which attributes we evaluated, go to

14 DISCLOSE MATERIAL CONNECTIONS A connection between the endorser and the seller of the advertised product that might materially affect the weight or credibility of the endorsement.

15 NEW: RENEWABLE MATERIALS AND ENERGY Providing more information helps minimize unintended implied claims Renewable materials Tell which material used; why renewable. Renewable energy Specify source of renewable energy

16 NO GUIDANCE Sustainable Organic Natural

17 MORE INFORMATION?

18 A service of the advertising industry and Council of Better Business Bureaus The FTC's Revised Green Guides: What Your Marketing Team Needs to Know David Mallen Deputy Director National Advertising Division November 6, 2012

19 The Advertising Industry s Self-Regulatory System

20 National Advertising Division Review process designed to protect the integrity and credibility of advertising by ensuring that claims are truthful and accurate. Cost-effective means of resolving disputes between competitors Success Rate: 95% Published decisions provide guidance to industry on issues in claim substantiation

21 Issues examined by NAD Product testing Testimonials Surveys Disclosures B2B Advertising Green Claims

22 Substantiating Green Claims 1. What messages are conveyed to consumers by the advertisement? 2. Does the advertiser have competent and reliable evidence to substantiate those claims? Scientific Evidence: Test, analyses, and research studies FTC Green Guides Industry Standards

23 Challenges to Green Claims General environmental benefit Biodegradable and degradable claims Safe or free of harmful ingredients renewable energy Natural claims Seals & Certifications Product denigration/ overstating consequences of using competitors product

24 General Environmental Benefit More Sensible for the Environment 100% Naturally Derived Surfactants. Church & Dwight (Arm & Hammer Essentials), Case #4848

25 Biodegradable will breakdown naturally within one year and disappear completely following customary disposal FTC Green Guides apply when advertising to the Trade. Ecologic, # 5388 (2011)

26 Made With Wind Energy. S.C. Johnson & Son, Inc., (Ziploc Evolve) Case #5225

27 Seals and Certifications TransFair USA (Fair Trade Certified Ingredients Seal), Case #5337

28 Going Forward Qualification of Claims Seals and Certifications Terms that are not well-defined: Natural Sustainable Self-Regulation

29 Selling Greener Products Without Greenwash November 6, 2012 Scot Case UL Environment

30 Beware of Greenwashing Green wash (grēn'wŏsh', -wôsh') verb: the act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service WARNING: Learn to ask critical questions or you might be selling or buying products with creative marketing rather than products with legitimate environmental benefits.

31 Seven Sins of Greenwashing

32 FTC Green Guide Revisions 32

33 Avoiding Greenwashing Verify Specific Environmental Claims & Publish Qualifying Language Certify to Environmental Leadership Standards & Publish Qualifying Language Develop Environmental Product Declarations & Publish Qualifying Language Share Environmental Information via Online and Mobile Applications with Access to Qualifying Language

34 UL Environment Third Party Certified EPDs

35 Environmental Product Declaration (EPD) 35

36 Green means different things to different customers Made by green company Certified as environmental leader Low-Toxicity Energy Efficient Recycled Content Typical Product Assortment There are an infinite variety of possible definitions for green.

37 37

38 Requires Verification Throughout the Supply Chain

39 Selling Greener Products Without Greenwash November 6, 2012 Scot Case UL Environment