From AAIA Capital Report

Any company making environmental claims on their products will want to read the newly proposed Guides for the Use of Environmental Marketing Claims that was issued by the Federal Trade Commission (FTC) on Oct. 6. The proposed guides include revisions to existing guidance, along with addition of new guidance for claims that were not thought to be common when the Green Guides were last revised back in 1998. Changes to existing guidance cautions marketers from making unqualified general claims that a product is "environmentally friendly" or "eco-friendly." These types of claims suggest the product has specific and far-reaching environmental benefits that are difficult, if not impossible, to substantiate.

The revised guidance also cautions marketers against the use of unqualified certifications or seals of approval that do not specify the basis for the certification. The FTC states that unqualified product certifications and seals of approval likely constitute general environmental benefit claims, and cautions marketers that the qualifications applied to seals or certifications must be clear, prominent and specific.

Finally, the Green Guide revisions advise marketers on public perception and use of the terms "degradable," "compostable," "ozone-safe/ozone-friendly," "recyclable" and "free-of/non-toxic." For example, a proper "degradable" claim means the product should decompose in a reasonably short period of time, or no more than one year.

Comments on the proposed revisions are due to the FTC by Dec. 10. Additional information can be found here.