Class Action Editor Andrei Rado Discusses Greenwashing and the FTC “Green Guides” Revisions

By on November 12, 2010

The Federal Trade Commission (FTC) is cracking down on “greenwashing” practices by companies that seek to capitalize on consumers’ demand for green products and their tendency to spend a premium for products that provide a benefit to the environment.  Greenwashing is the deceptive use of “eco-fiendly” marketing and labeling to promote the misleading perception that a company’s products are green.  On October 6, the FTC published revisions to its “Green Guides” — a guide for the use of environmental marketing claims — to help companies avoid mislabeling their products.

Also see: FTC Enforces New Guidelines for “Green” Products Label

The topic of greenwashing has been in the news recently following the release of a study by marketing research firm, TerraChoice, that showed out of 5,296 products surveyed, 95% of them had misleading environment claims.  The annual “Sins of Greenwashing” report, published on October 28, states that the number of products with green claims are on the rise yet a stunning 70% of these products now have no proof of their claims, and 31% go so far as to include some kind of label that looks like a third-party certification, Andrew Winston of the Harvard Business Review reported.

Class Action Central Editor and Milberg Partner Andrei Rado sat down with Allen Yesilevich to discuss the issue of greenwashing and how consumers and businesses are affected by the inappropriate practices. 

Watch the video:

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