Earth Day Reminder: Are Your Environmental Advertising Claims Compliant with the FTC's Green Guides?
While consumer demand for environmentally conscious products remains high, businesses often wish to highlight the sustainability of their products and practices. However, environmental marketing claims—from “eco-friendly” packaging labels to carbon-neutrality pledges — can carry real legal risk if they are unsubstantiated or misleading.
The Federal Trade Commission’s (FTC’s) Guides for the Use of Environmental Marketing Claims, commonly known as the “Green Guides,” provide a framework for how the FTC evaluates these claims. With Earth Day drawing attention to environmental messaging, businesses are also reminded to review their marketing claims and ensure they are compliant.
What Are the Green Guides?
The Green Guides explain how the FTC applies Section 5 of the FTC Act — which prohibits unfair or deceptive acts or practices — to different types of environmental marketing claims. Although the Green Guides do not carry the force of law, the FTC regularly relies on its principles when bringing enforcement actions against companies whose environmental claims it considers deceptive.
As a practical matter, businesses should treat the Green Guides as the baseline standard for any environmental marketing, and doing so will also help lower the risk of claims by other regulators and plaintiffs (for example, under state laws prohibiting unfair or deceptive advertising practices).
Examples of Common Claims Addressed by the Green Guides
- General Environmental Benefit Claims: Broad, unqualified claims such as “green,” “eco-friendly,” or “good for the planet” present heightened risk. The FTC views these claims skeptically because they are inherently difficult to substantiate. Specifically, such statements may reasonably convey a wide range of meanings to consumers – including that a product has no negative environmental impact – and all such meanings are rarely, if ever, supportable. Without clearly and conspicuously qualifying such claims, they are likely to be considered deceptive.
- Recyclability: A product should not be labeled “recyclable” unless it can be collected and processed through established recycling programs available to a substantial majority of consumers. If access is limited, the claim should be avoided or appropriately qualified.
- Recycled Content: Claims that a product includes recycled content must be substantiated with evidence that such content was recovered or diverted from the waste stream.
Compliance Takeaways
Given the breadth of the Green Guides, businesses making environmental marketing claims should:
- Understand whether statements made in advertising constitute environmental claims subject to the Green Guides.
- Ensure claims are supported by adequate substantiation – which often requires competent and reliable scientific evidence in the context of environmental claims – at the time the claim is made.
- Use clear, specific language and include appropriate qualifications where necessary.
Looking Ahead
Earth Day is a useful reminder that environmental marketing is an area of active regulatory scrutiny. Companies should take this opportunity to review their claims holistically—across packaging, advertising, and digital channels—to ensure consistency and compliance.
If you have questions about your environmental marketing practices or would like to assess your compliance with the Green Guides, please contact Kasey Pierter or Madeleine Fenderson.