Will Revised FTC Green Guides Leave Marketers Singing the Blues?

[Editor's Note: Executive Editor Joel Makower's take on the revised guidelines is available at GreenBiz.com.]

Will green marketers be singing the blues following the U.S. Federal Trade Commission’s long-awaited release Wednesday of proposed revisions to its “Green Guides?”

There’s no consensus on that, with initial comments ranging from little impact to predictions of wide-ranging changes, especially by lawyers. It will probably be somewhere in between. There was also concern expressed that what results from the Green Guides could end up confusing consumers even more.

The FTC proposed, among other things, that marketers avoid blanket claims that a product is “environmentally friendly” or “eco-friendly” because they are “nearly impossible to substantiate” and are likely to suggest “specific and far-reaching” environmental benefits that few, if any, of them have. The proposed changes also include new guidance on marketers’ use of product certifications and seals of approval, renewable energy claims, renewable materials claims and carbon offset claims.

The proposed changes were provided as part of a 200-plus page document, complete with an overview, background and details of both claims that are and are not addressed by the guidelines. The FTC also provided a well-done and convenient two-page PDF summarizing the proposed revisions.

FTC seeks public comments on the proposed changes until December 10, 2010, after which it will decide which changes to make final. Comments can be submitted in paper form by following the instructions in the “Request for Comment” section of the Federal Register notice, or electronically.

“In recent years, businesses have increasingly used green marketing to capture consumers’ attention and move Americans toward a more environmentally friendly future. But what companies think green claims mean and what consumers really understand are sometimes two different things,” said FTC Chairman Jon Leibowitz. “The proposed updates to the Green Guides will help businesses better align their product claims with consumer expectations” he added.

A Tad More of the Details

The proposed Green Guides caution marketers not to use unqualified certifications or seals of approval -- those that do not specify the basis for the certification through specific criteria. They emphasize that certifications/seals are endorsements covered by the commission’s Endorsement Guides and provide new examples illustrating how those guidelines apply to environmental claims (e.g., marketers should disclose material connections to the certifier). Third-party certification does not eliminate a marketer’s obligation to have substantiation for all conveyed claims.