Aug 13

2009

Watch your FTC’s

Posted by: J. Rosenholtz @ 11:24 am

A couple of months ago, the Federal Trade Commission (FTC) charged Kmart, Tender Corp., and Dyna-E International with making false and unsubstantiated claims that their paper products were “biodegradable.” Kmart and Tender had agreed to settle the cases against them however the case against Dyna-E will move to litigation. At issue were the statements made by the companies stating that the American Fare brand disposable plates were biodegradable, that the Tender Corp. Fresh Bath-brand moist wipes were biodegradable, and the Dyna-E International Lightload brand compressed dry towels were biodegradable. In the three complaints announced, the FTC alleged that the defendants’ products typically are disposed of in landfills, incinerators, or recycling facilities, where it is impossible for waste to biodegrade within a reasonably short time.

Since 1992, the FTC’s “Green Guides” have advised marketers that unqualified biodegradable claims are acceptable only if they have scientific evidence that their product will completely decompose within a reasonably short period of time under customary methods of disposal. Since none of the companies charged in the complaint had any scientific evidence to support their claims they were charged with “Greenwashing” the public. Had they taken the time to have a third party verify their claims, the charges could have been avoided.

In its newest set of charges, the FTC has gone after four clothing manufacturers who sold rayon clothing that claimed to be made out of “100% Bamboo” that used an “environmentally friendly process”, “retained natural antimicrobial properties of bamboo”, and was “biodegradable”. The FTC says that while rayon can be made from bamboo and fibers from other plants, the clothing is processed with a harsh chemical that releases hazardous air pollutants.The companies named in the recent complaint are ecoKashmere, Pure Bamboo, Bamboo Comfort, and BambooBaby.

If you think that the FTC doesn’t do their homework think again, because the FTC noted in the complaint that even if the rayon used in the companies’ clothing was manufactured from bamboo, rayon does not retain any natural antimicrobial properties of the bamboo plant. In addition, because the manufacturing process also involves harsh chemicals the products are not made using an environmentally friendly process. A few months ago I had the opportunity to listen to a seminar given by James Kohm, Director for the Enforcement Division of the Federal Trade Commission’s Bureau of Consumer Protection. His advice to businesses that want to promote “green” in their advertising was basically summarized in 2 easy steps.

Step 1. Tell the Truth
Step 2. Prove what you say by using established scientific methodologies

It seems so simple yet for some reason so many businesses don’t think that they need to substantiate their environmental marketing claims. When it comes to consumer protection, this is an area that the FTC takes very seriously and rightfully so. Let’s not misuse the public trust by slapping “Grey” green claims all over products that are not environmentally responsible. Doing so squanders public confidence and harms the environment by making it more difficult for true environmentally conscious companies to innovate and advertise true environmental benefits. Let’s just hope more companies start watching their FTC’s.