For the first time in a decade, the Federal Trade Commission is updating its Green Guides – a set of administrative interpretations of the FTC Act to help marketers avoid making unfair or deceptive environmental marketing claims.  

The changes and updates to the Green Guides were proposed in late December, and the public has until Feb. 21 to submit comments about the “efficiency, costs, benefits and regulatory impact” of the guides.

“Consumers are increasingly conscious of how the products they buy affect the environment, and depend on marketers’ environmental claims to be truthful,” said Samuel Levine, director of the Bureau of Consumer Protection. “We look forward to this review process and will make any updates necessary to ensure the Green Guides provide current, accurate information about consumer perception of environmental benefit claims. This will both help marketers make truthful claims and consumers find the products they seek.”

The Green Guides were first issued in 1992 and were revised in 1996, 1997 and 2012. They provide guidance on environmental marketing claims, including how consumers are likely to interpret particular claims and how marketers can substantiate these claims to avoid deceiving consumers.

With sustainability increasingly top of mind in the promotional products industry, it’s crucial to keep an eye on such developments, both to avoid greenwashing in marketing efforts and to stay on the right side of the law. Consider that in April 2022, the FTC asked the courts to penalize Kohl’s Inc. and Walmart Inc. a total of $5.5 million for falsely marketing dozens of rayon textiles as bamboo and saying that the goods were made using eco-friendly processes. In actuality, converting bamboo to rayon requires the use of toxic chemicals and results in hazardous pollutants, according to the FTC.

In this current public comment period, the FTC is requesting feedback on the continuing need for the guides, their economic impact, their effect on the accuracy of various environmental claims and their interaction with other environmental marketing regulations.

In particular, the FTC expects to get many public comments in the following areas:

• Carbon offsets and climate change: The current guides provide guidance on carbon offset and renewable energy claims. The FTC wants comment on whether the revised guides should provide additional information on related claims and issues.

• The term “recyclable”: The FTC says it is seeking comments on whether it should change the current threshold that guides marketers on when they can make unqualified recyclable claims, as well as whether the guides should address in more detail claims for products that are collected curbside by recycling programs but not ultimately recycled.

• The term “recycled content”: The FTC wants to know whether unqualified claims about recycled content – particularly claims related to “pre-consumer” and “post-industrial” content – are widely understood by consumers. Also, would alternative methods of substantiating recycled content claims be appropriate?

• Additional guidance: The FTC wants comment on whether there’s a need for additional guidance regarding claims such as “compostable,” “degradable,” “ozone-friendly,” “organic” and “sustainable” as well as claims regarding energy use and energy efficiency.

“Walk down the aisle at any major store – you’re likely to see packages trumpeting their low carbon footprint, their energy efficiency or their quote-unquote ‘sustainability.’ For the average consumer, it’s impossible to verify these claims.”Lina M. Khan, FTC chair

In a statement, FTC Chair Lina M. Khan noted that one of the reasons people choose whether to buy a product is environmental impact. “Before making a purchase, many American consumers want to know how a product contributes to climate change, or pollution, or the spread of microplastics,” she said. “Businesses have noticed. Walk down the aisle at any major store – you’re likely to see packages trumpeting their low carbon footprint, their energy efficiency or their quote-unquote ‘sustainability.’ For the average consumer, it’s impossible to verify these claims.”

That’s why, Khan added, it’s so important for companies making such claims to tell the truth. “If they don’t, it distorts the market for environmentally friendly products,” she said. “And, it harms consumers who want to make conscientious decisions about what products to buy and what businesses to support.”

The Green Guides revision comes at a time when many companies have moved past greenwashing or exaggerating their sustainability claims in marketing, to something dubbed “greenhushing,” where brands stay mum about their sustainability policies and milestones. Nicola Stopps, CEO of consultancy company Simply Sustainable, told Raconteur that the trend is likely due to fear of bad press: “The public and stakeholders are definitely becoming more educated, aware and savvy,” Stopps said. “Companies need to take this a lot more seriously.”

A more robust and up-to-date version of the Green Guides could help promo suppliers and distributors avoid both greenwashing and the impulse to greenhush their efforts.

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