FTC, Consumers Challenging Environmental Claims


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FTC, Consumers Challenging Environmental Claims
By: Staff
Issue: 2010jun

The Federal Trade Commission (FTC) and individual consumers have begun challenging the "environmentally friendly" claims of various products.

The FTC sent warning letters to 78 retailers in February, saying that labeling rayon a bamboo fabric is potentially misleading and could subject them to civil suits. The FTC can prohibit statements likely to mislead a "reasonable consumer." The Commission is expected to update its Green Guides, a set of recommendations and guidelines on environmental marketing claims, soon.

Also, at least four consumer lawsuits have accused companies of using misleading advertising about products' environmental impact, with some seeking class-action status.

The companies stand accused of adding self-designed labels that imply their products have won some third-party seal of approval; promoting products as "biodegradable" when there is little chance they would actually decompose in a landfill; and mislabeling rayon fabric as bamboo.

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