Companies touting eco-friendly products, biodegradable
packaging, or other "green" claims should be aware that
FTC enforcement relating to such environmental claims is on the
rise in the current administration. On Feb. 3, 2010, the FTC sent
letters (available at http://www.ftc.gov/bamboo) to 78 retailers nationwide, warning them that
labeling rayon products as made of "bamboo" and/or
"biodegradable" is potentially misleading and may lead to
enforcement actions from the FTC.
The FTC's recent warning letters come on the heels of several
2009 enforcement actions alleging companies falsely touted their
rayon products were "bamboo" or
"biodegradable." The FTC acknowledged that bamboo was the
cellulose source for the products, but contended that the final
product was rayon. According to the FTC, using bamboo to create
rayon requires harsh and toxic chemical processing and the
resulting rayon did not retain the eco-friendly or antimicrobial
properties of raw bamboo. Moreover, the FTC re-iterated its
position that rayon products are not readily
"biodegradable" as such textile products often end up in
landfills where it is virtually impossible for such waste to break
down within a reasonably short time under customary methods of
disposal. See In the Matter of The M Group, Inc., et al. (http://www.ftc.gov/os/adjpro/d9340/index.shtm). Earlier in 2009, the FTC cracked down on both
manufacturers and retailers of towellete wipes contending the
products were falsely advertised as "biodegradable"
because the wipes would not in fact biodegrade in a reasonably
short time after customary disposal since those products are
customarily disposed of in landfills, incinerators or recycling
facilities. See In The Matter Of Dyna-E International, Inc., et al.
(http://www.ftc.gov/os/adjpro/d9336/index.shtm).
Since 1992, the FTC has regulated environmental marketing claims
through the Guides for the Use of Environmental Marketing Claims
(known informally as the "Green Guides"), available on
the FTC's web site at http://www.ftc.gov/bcp/grnrule/guides980427.htm. The Green Guides define terms such as
"biodegradable" and "recyclable" and other
environmental marketing terms, and explain how marketers should
substantiate such claims. Although there has been little
enforcement of the Green Guides over the last decade, the
Commission has already initiated seven enforcement actions during
the new Obama administration. Moreover, the FTC is expected to
release new updated Green Guides in 2010 and to continue to
aggressively pursue enforcement of green washing claims as
evidenced by its recent warning letters to retailers.
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