Antitrust Law Daily Wrap Up, ADVERTISING NEWS: Warning letters concerning use of green certification seals issued by FTC , (Sep 14, 2015)

By Michael Menzhuber, J.D., LL.M.

The FTC staff sent warning letters to five providers of environmental certification seals and 32 businesses using those seals, alerting them to the FTC’s concerns that the seals could be considered deceptive and may not comply with the FTC’s environmental marketing guidelines. No law enforcement actions are being taken at this time, and the FTC is not disclosing the names of the companies that were sent copies of the warning letter.

It is often difficult for consumers to tell whether a product has the environmental attributes that it touts, according to the agency. Environmental certification seals help address this problem by assuring consumers that they are actually getting the environmental benefit they want to buy. However, these seals and certifications can inadvertently deceive consumers by conveying more than a marketer intends.

To help marketers avoid this problem, the FTC issued advice in its Guides for the Use of Environmental Marketing Guides (“Green Guides”). That guidance explains that: (1) unqualified general environmental benefit claims such as “green” and “eco-friendly” convey a broad range of attributes, and that almost no product could have them all, and (2) green claims should be properly qualified and provide examples of how to create a seal or certificate that avoids deceiving consumers.

“Performing Seals,” the FTC’s new business blog post by Lesley Fair, can help marketers understand how certification seals can comply with the Green Guides. It includes two sample certification seals to illustrate “dos” and “don’ts” that businesses should keep in mind.

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