Our sole government panel member, Chuck Harwood, spoke today about the FTC Act, the FTC Green Guides, and Green Guide Reviews.
A bit about the FTC:
More than just advertising regulations. The basic rules are to tell the truth and substantiate claims. Advertising regulations are based upon consumer perceptions.
How does the FTC judge consumer perceptions: advertisers marketing tests, consumer input and complaints, and FTC investigations.
Green Guides, “Guides for the Use of Environmental Marketing Claims“:
-To help marketers avoid unfair or deceptive environmental claims.
-Applies to all forms of marketing.
Because these are guidelines rather than laws they can be altered frequently, but are not solid set rules.
General Principles:
*consumer perception of claims controls, whatever a consumer sees in a claim, is what the claim is.
*It’s always better to use specific claims, easily substantiated and understandable.
*Don’t overstate attributes, “50% more recycled material (yet it’s from 1% to 2%)”
*Use prominent and clear qualifications. If they’re not visible, or unclear it falls back under the “consumer perception” guideline, where consumer is right.
*Have to substantiate all expressed and implied claims.
(Commissioner J. Thomas Rosch gave a speech on Responsible Green Marketing in June of 2008)
1998 was the last revision of the Green Guides
Types of marketing claims (According to Chuck these are outdated and in the process of revisions): General environmental benefits, Biodegradable, photodegradable, Compostable, Recycled content, Recyclable, Source reduction, Ozone safe, Non-toxic, Environmental seal of approval.
Green Guides Regulatory Review (in process, second year of revision process):
General issues- continuing need for Guides, Effect on the accuracy of claims, Other guides/regulations (more specific)
Had three workshops discussing green issues:
Carbon Offsets and RECS,
Green Guides and Packaging
and
Green Building and Textiles - Need to consider how consumers view green building, how do you substantiate claims in green building when it varies so much.
In the coming years, as GreenWashing and Green Advertising increases, the FTC will continue to revise and improve it’s recommendations and guidelines.
