Organic! Biodegradable! Environmentally-friendly!...None of the above
green wash (gren'wosh) (v.) The act of misleading purchasers regarding the environmental practices of a company or the environmental benefits of a product or service.
As more and more consumers do their part to save Mother Earth, it’s tempting to advertise goods and services as “eco-friendly,” or to promote their sustainability efforts.
But, as it turns out, not all that is green is good.
The practice of putting a green lens over products so as to spin them as environmentally friendly in advertising and PR campaigns is known as “greenwashing." (One obvious example is hairspray. Many aerosol products still advertise products are "CFC-free" relying on the consumers’ memory for ozone depletion, even though CFCs have been banned for decades.)
And while it may seem innocent enough to claim a product is better than it is through ads, many companies are exposing themselves to liability and losing consumer confidence when they don’t have the data to back it up.
The term “greenwashing” was coined by New Yorker Jay Westerveld who first used the phrase when discussing a tactic of the hotel industry to encourage guests to reuse their towels in an effort to "save the environment" and “use less water.” Great idea, except that hotels rarely—if ever—tried to save water or otherwise “save” the environment.
Realizing “green claims” were on the rise, the FTC issued its “Guides for the Use of Environmental Marketing Claims” in 1992. These Green Guides outline acceptable environmental marketing practices and require a reasonable basis for any environmental claim. (http://ftc.gov/bcp/grnrule/guides980427.htm).
Yet, greenwashing not only continued, but became more prevalent. As more and more consumers demanded products with an environmental benefit, companies scrambled to develop new ad campaigns. But many of the claims were unsubstantiated and unsupportable. In fact, an environmental marketing agency, TerraChoice (www.terrachoice.com) released a study entitled "The Six Sins of Greenwashing.” The study found that, in 2007, more than 99% of 1,018 common consumer products randomly surveyed were guilty of greenwashing. (The study was updated this year to include a “seventh sin.”)
Realizing green marketing was getting out of control, the FTC stepped up to the plate. It has brought a number of actions under Section 5 of the FTC Act, which prohibits unfair or deceptive practices and carries an $11,000 fine per violation. One complaint targeted K-Mart for carrying a product that claimed to be biodegradable, but wasn’t as environmentally friendly as promised. The FTC is also in the process of reviewing and updating the Green Guides to make sure they are responsive to changes in the market.
Concerned about a product or service? If you are the one advertising, the best way to protect against liability is to demand the data backing up the claim before signing off on an advertisement, and speak with an attorney who can get you up to date on the legal issues and how to protect yourself from fines and lawsuits and ensure the advertisement doesn’t go too far.
If you are the purchaser, don’t hesitate to do your research. Is that bottle of chemicals truly “environmentally-friendly” simply because there is a picture of a forest on the label? Is a “fuel-efficient” hummer really better than a fuel-efficient mid-size, or than taking public transportation and walking a few extra blocks?
Money talks and it is important to spend it wisely and on goods, services and companies that are truly making an effort and doing the right thing.
By: Jessica Lee Reece - Smith, Gambrell & Russell - Atlanta, Georgia
image source: greengoddessconsulting.blogspot.com/
7 Comments
Reader Comments (7)
very interesting, have thought about this myself -- how do we know? due diligence....
jason and pia
Excellent thoughts Jessica. I agree transparency is going to be a key issue for green business going forward. All businesses for that matter..and it's going to take a lot of untangling to do it! Enter the "green collar economy". Consultants.
It's amazing what advertisers will hint at to get you to buy their products. Some children's cereals are now claiming they help children's immune systems because they contain vitamins. Which may have some smidgeon of truth; but it really just plays on a parent's fears of their child getting H1N1.
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