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Executive Summary
Our Food & Beverage; Environment, Land Use & Natural
Resources; and ESG Advisory Groups outline regulatory requirements
Environmental claims on product labels are the latest litigation developments
Provide insights on how marketers can reduce risk
Products that are sold in the United States
globally.
- Regulatory developments: Green Guides updates, new state
Legislation - SEC climate disclosure rules and litigation challenges
Ascend - Best practices
Green claims and commitments
Recyclable to sustainable
Third-party certificationare appearing on product labels in increasing numbers
Websites in corporate reports and in Securities and Exchange
Commission (SEC), investor communications and filings
media. Investors, regulators, and consumer class action lawyers
Nongovernmental organizations (NGOs) and competitors are both
Pay attention. Advertising claims and labelling that highlight a
Products’ environmental impact is being more closely monitored.
Greenwashing is a common accusation. How can marketers prevent greenwashing?
You want to promote environmental benefits but avoid scrutiny?
Regulatory Developments: FTC Green Guidelines Update and New State
Legislation
Marketers of food, consumer goods and services have become more prominent in recent years.
Environmental marketing claims are increasingly being used.
To meet consumer demand.
Assist alignment by incorporating environmentally-friendly attributes
Retailers making sustainability promises. Understanding how
These claims are regulated at the state and federal level.
First step to ensure statements comply with applicable
requirements.
Federal law governs environmental marketing claims.
The Federal Trade Commission (FTC Act of 1914) declares
Or, unlawful unfair or deceptive acts and practices
Commerce. The FTC Guides for Use of
Environmental Marketing Claims (Green Guides).
Obtain the FTC’s current views on environmental issues
Describe situations in which claims might or may not be made.
As per the FTC Act helping marketers avoid making untrue claims
Section 5 of FTC Act prohibits unfair or deceptive practices. Some
States (e.g. New York) have adopted parts of the FTC Green
Guides into state law.
Importantly, the Green Guides are not binding.
Industry can still use this tool to ensure its safety.
Federal guidance is followed when claims are made. The FTC has the power to take action
If a marketer makes a environmental claim
Contrary to the Green Guides. The past few years
For years, the FTC initiated enforcement actions against marketers
Targeting various environmental claims, like Green
Eco Assurance seals and Promise seals, VOC-free
As violations of the law, claims and certified organic are also considered.
FTC Act. FTC Act.
In the past, environmental claims were relatively rare.
We expect to see an increase in our expectations over the next several years, if resources allow.
Consumer interest in this area has been reflected in regulatory enforcement
This article is intended as a general overview.
guide to the subject matter Expert advice should be sought
Learn more about your particular circumstances.
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