The Federal Trade Commission (FTC) of the United States of America has issued certain new guidelines on the 1st October, 2012. According to the set of new guidelines, markets need to substantiate eco-friendly promotional items’ claims. In order to avoid any deceptive and unwanted claims, the federal government released the set of stricter guidelines.
Any company marketing their products as green, must not use broad terms like ‘eco-friendly’ if they can’t provide proof and specifics. The Federal Trade Commission of USA says in their new Green Guides that markets need to prove any green product claims. For instance, if the company says a product is ‘degradable’, the company has to prove that the product will completely break down within a year after it is disposed.
Guidelines need clarification on category qualifications
The guidelines were first issued about twenty years ago and then got updated in 1998. According to these guidelines, the companies need to clarify as to what qualifies as ‘recycled content’, ‘recyclable’ and ‘compostable’. For the first time, the guidelines have also included terms such as ‘non-toxic’, ‘carbon offsets’ and ‘renewable energy’. USA’s FTC said that marketers should not utilize environmental seals or certification, which doesn’t convey clearly the base for this seal or certification.
Green Guides helping in the verified selling of eco-friendly promotional items
The FTC feels that by doing so, there will be a substantial change brought about the marketplace. It is a way to do away with misleading claims, so that consumers can buy eco-friendly promotional items without being duped.
Since there were quite a few products in the markets, claiming to earth friendly, but didn’t actually live up to the claim, the revised guidelines were issued. It was also because there were quite a few complaints against certain products regarding false advertising or ‘green-washing’.
The guidelines are certainly not regulations or rules of the FTC, but if they are violated the government agency will issue fines and warnings. Over 78 retailers were warned by the FTC of USA in the year 2010, to stop marketing the rayon cloth as ‘bamboo’. Kmart, Wal-Mart and Target were some of the retailers warned in the issue by the FTC.
The FTC is currently not addressing certain terms in the guidelines issued. Terms such as ‘natural’, ‘sustainable’ and ‘organic’ aren’t addressed in the Green Guides as the FTC feels that they lack sufficient basis in order to do so.
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