FTC Adds Restrictions to Improve Accountability over Green Certification Standards-

Informed consumers have begun to advance toward healthier, more conscious decisions concerning what products they use, wear, and eat. However, many people probably aren’t aware that there is little to no supervision over the integrity of these company labels. The Federal Trade Commission (FTC) began the original Guides for Use of Environmental Marketing Claims in the 90’s and, in light of these labeling issues, is presently revising the guide to put a halt on product marketing deception and create more stringent accountability.

According to the latest survey released by the Boston Consulting Group, around 17 percent of U.S. consumers are willing to pay top value for green products – a 10 percent rise since last fall. Several of these labels, however, are printed and endorsed by companies who are supplying extremely deceptive information. For example, textile manufacturers have been mislabeling rayon as bamboo, since a insubstantial quantity of bamboo was used in the creation process. The FTC states that “rayon is a man-made fiber created from the cellulose found in plants and trees and processed with harsh chemicals that release hazardous air pollution. Any plant or tree – including bamboo – could be used as the cellulose source, but the fiber that is created is rayon.” The FTC has already notified 78 various retailers, such as Macy’s, Amazon and Walmart, that they must retract their false labeling of “bamboo” in their products. The FTC guide restrictions will effect more than just companies that mislabel rayon, it could terminate roughly 300 environmental “seals of approval” now in use. With the new potential restrictions, companies who display seals of approval must provide in-depth information verifying such claims. Third party approvals must also support that the certifying party is independent from the advertiser and must possess expertise in the field of certification. These regulations will strengthen criterion for packaging claims such as “recyclable” and “biodegradable”, and will help to confront the problem of company “greenwashing”. The FTC plans to finish the adjustments by the end of summer 2010.