As noted in a related article on the subject, Ernst & Young says reporting on “green” product development will provide companies with the opportunity to document the basis for any claims they make. It also will help them collect environmental information about their products as their customers develop supplier sustainability initiatives.
The problem is that the use of terms like ‘green’, 'eco-friendly', or ‘made of 100% recycled materials” can be misleading. To address this growing challenge, the Federal Trade Commission (FTC) recently proposed revisions to its “Green Guides”, including new guidance on marketers’ use of product certifications and seals of approval, “renewable energy” claims, “renewable materials” claims, and “carbon offset” claims.
As noted in the FTC announcement:
The revised Guides caution marketers not to make blanket, general claims that a product is “environmentally friendly” or “eco-friendly” because the FTC’s consumer perception study confirms that such claims are likely to suggest that the product has specific and far-reaching environmental benefits. Very few products, if any, have all the attributes consumers seem to perceive from such claims, making these claims nearly impossible to substantiate.
The proposed Guides also caution marketers not to use unqualified certifications or seals of approval – those that do not specify the basis for the certification. The Guides more prominently state that unqualified product certifications and seals of approval likely constitute general environmental benefit claims, and they advise marketers that the qualifications they apply to certifications or seals should be clear, prominent, and specific.
Next, the proposed revised Guides advise marketers how consumers are likely to understand certain environmental claims, including that a product is degradable, compostable, or “free of” a particular substance. For example, if a marketer claims that a product that is thrown in the trash is “degradable,” it should decompose in a “reasonably short period of time” – no more than one year.
The bottom line? If a product claims to be ‘green’ or ‘eco-friendly’, it better be clear on just exactly what that means, and have the documentation to prove it.
It’s all part of next-generation product design, a topic that is explored in greater detail in the related research study, “Sustainability and the Product Lifecycle: A Report on the Opportunities, Challenges and Best Practices for Sustainable Product Design and Manufacturing.” So, stay tuned. We’ll be providing updates and an opportunity to participate in the research in the weeks and months ahead.
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