Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC approves final order settling charges that plastic bag manufacturer made misleading and unsubstantiated green claims, (May 2, 2014)

By Linda O’Brien, J.D., LL.M.

Following a public comment period, the FTC today has announced its approval of a final order settling charges that American Plastic Manufacturing, Inc. made misleading and unsubstantiated biodegradability claims for its plastic bag products. The final order is the fourth settlement resulting from a series of environmental marketing cases, first announced in October 2013. In January 2014, the FTC approved final orders settling charges against Clear Choice Housewares, Inc., Carnie Cap, Inc., and MacNeill Engineering Company.

In its complaint (In re Matter of American Plastic Manufacturing, Inc., File No. 122-3291), the FTC alleges that American Plastic advertised its plastic bags as being biodegradable when in fact the bags did not decompose within a reasonably short time after disposal.

Under the FTC’s final order, the company is prohibited from making biodegradability claims unless the representations are true and supported by competent and reliable scientific evidence. The company must have evidence that the entire plastic product will completely decompose into elements found in nature within one year after customary disposal (defined as disposal in a landfill, incinerator, or recycling facility) before making any unqualified biodegradable claim.

In order to make qualified claims, the companies must state the time required for complete biodegradation in a landfill or the time to degrade in a disposal environment near where consumers who buy the product live. Alternatively, the companies may state the rate and extent of degradation in a landfill or other disposal facility accompanied by an additional disclosure that the stated rate and extent do not mean that the product will continue to decompose or decompose completely.

The Commission vote approving the final order was 4-0.

Companies: American Plastic Manufacturing, Inc.

News: ConsumerProtection FederalTradeCommissionNews