Feds propose crackdown on misleading 'green' labels

Stroll down any aisle in the local grocery store and you'll notice a phenomenon in advertising - "non-toxic" pens, "biodegradable" paper plates, "natural" garbage bags.

Green sells. It makes people feel good.

But are the labels true?

The Federal Trade Commission took enforcement action against seven companies last year for false claims on so-called green products, including one case in which a textile business was selling "environmentally friendly" bamboo paneling that was actually rayon.

This week, the FTC proposed stricter guidelines to curb "greenwashing," the practice of labeling products as "recyclable" or "chemical-free" or "ozone-safe" when, in fact, they might not be.

"Most companies want to comply, but those that don't, we're going to go after them," FTC Chairman Jon Leibowitz said Wednesday in a conference call with reporters.

The agency is refining its own guidelines published in 1998, making them more specific and demanding, while also adding requirements to phrases that have cropped up in the marketplace.

Those phrases include "made with renewable materials," "made with renewable energy" and "carbon offsets."

If the proposed guidelines are adopted after a public comment period, probably by early next year, marketers no longer could make "unqualified general environmental benefit claims" by using vague words such as "green" or "eco-friendly."

Those words, the FTC argues, are difficult, if not impossible, to substantiate.

Consumer advocacy groups applaud the tougher amendments but also note lingering holes. The word "sustainable," for example, is left without any formal definition.

"The FTC is trying to help advertisers and consumers navigate the wilds of green advertising, but marketers throw about environmental claims with abandon, and I don't expect them to stop," said Kevin Trueff, co-founder of EnviroMedia Social Marketing.

Trueff also helped create the Greenwashing Index, which can be found at GreenwashingIndex.com. It rates advertisements on a scale of 1 to 5 - 1 meaning authentic, 3 being suspect, and 5 bogus.

Responding to the proposed changes, Trueff said, "The good news is, this could be the end of nonsensical claims like 'clean coal.' The bad news is, the new FTC Green Guides do not address more complicated terms like 'sustainable.' "

Some highlights of the proposed guidelines:

-- In using the term "biodegradable," marketers previously had to prove that their product would break down in a "reasonably short period of time." The new threshold is tighter - "no more than one year after customary disposal."

-- In using the term "free of," a marketer would not be able to claim a product is free of a certain dangerous substance if the same product contains other dangerous substances.

-- In using the term "made with renewable energy," marketers would have to specify which type of renewable energy source is in question, say, solar or wind. Also, if the power used to manufacture any part of the product is derived from fossil fuels, they could not make an unqualified renewable claim.

An unscientific review of products in local grocery stores revealed a range of labeling.

Take Seventh Generation diapers, for example.

Slightly more expensive than regular diapers, Seventh Generation includes a chart on its packaging, detailing ingredients and where they are applied in the diaper. This clearly is what the FTC is pushing for.

By contrast, Scott "Naturals" paper towels contain vague and confusing labeling.

On the front of the package, it says "60 percent recycled." But on the back, in smaller print, a label says the towels contain "40 percent recycled" material.

It also says the 100 percent of paper fibers come from "sustainable resources" without saying what those are.

Chinet paper plates include a label on the front saying "Biodegradable, in home composting." But on the back, in finer print, another label states that the plates are "designed to be composted in a professionally managed facility. Check to see if such a facility exists in your community."

So, would that include backyard composting piles, as the front label says?

FTC Commissioner Julie Brill said companies don't have to print their scientific evidence backing up their claims on labels. But if the FTC asks to see the evidence, they will be expected to have it.

The FTC "does not really have fining authority," said Leibowitz, but it typically will write a warning letter to a company suspected of false advertising.

If that doesn't work and problems persist, the FTC can seek an order against that company requiring a false ad to be stopped.

Scott Harper, (757) 446-2340, scott.harper@pilotonline.com