What to Expect From the FTC's Updated Green Guides

The last time the U.S. Federal Trade Commission issued guidance on environmental claims, Barack Obama was campaigning for his second term in office, that one Gotye song was at the top of the charts and Hurricane Sandy had yet to crash into communities from the Caribbean to Canada. Needless to say, a lot has changed since 2012—especially when it comes to the climate, and how brands are talking about their environmental impacts. While the FTC was initially slated to issue new guidance last year, the agency extended its period for public comment through this spring. It's likely that the new guides won't be released for at least several months, experts told Adweek. In the meantime, advertisers must continue to make difficult choices about how to communicate their environmental commitments and progress to people. And while the Green Guides aren't laws themselves, and not independently enforceable, they do help companies navigate the complexities that exist within the FTC's broad mandate to protect consumers. Fear of Greenwashing Is Forcing Brands Into Greenhushing Experts advised that marketers substantiate claims whenever possible, pay attention to what the FTC is asking questions about and avoid phrases or terminology that could mislead people. Back it up Most importantly, marketers can ensure that those claims are substantiated whenever possible, said Alison Pepper, evp of government relations and sustainability at the 4A's. Still, that's increasingly difficult when it comes to climate-related terms like carbon neutral and net zero. Due to the nature of those claims, "You're not going to be able to substantiate them for a while, because they require long-term data," Pepper said. This kind of gray area is exactly where some guidance from a regulatory body like the FTC would be instructive. "[For] anyone making an advertising claim, greenwashing or not—you better be doing what you say you're doing," she said. Take a hint At the end of the FTC's public comment period, the agency will review and respond to those comments. It's only after that—and potentially after multiple workshops on specific topics—that the FTC will be in a position to issue the new Green Guides, that's likely months away. That doesn't mean that advertisers are completely in the dark, or that they should take environmental claims lightly in the meantime, noted advertising lawyer Jeffrey Greenbaum, managing partner at Frankfurt Kurnit Klein & Selz PC and global chairman of the Global Advertising Lawyers Alliance. "Just because it's not defined in the guides doesn't mean you should think you get a free pass on sustainability," Greenbaum said. There are also clues within the FTC's request for public comment. The agency asked for insight on claims related to carbon neutrality, climate change, recyclability and compostability, for example. These are areas where advertisers should take great care, Greenbaum said. Because there's nothing preventing the agency from taking enforcement action against a company for its misleading claims before the Green Guides are officially released. "The FTC is sending pretty clear messages about the things that they care about," Greenbaum noted. "What marketers should be doing is thinking about how those issues impact their advertising, and they should start to take action now." Clarity is key While the European Union and the Advertising Standards Authority are ramping up efforts to penalize companies for greenwashing or failing to follow through on climate commitments on the other side of the Atlantic, the FTC has a narrower mandate. The agency is laser-focused on preventing advertisers from confusing or misleading consumers. Still, many of these issues that the FTC is tackling require more than can be addressed within the realm of advertising. "When it comes to environmental sustainability overall and making sure that consumers are informed and able to actually take action in the way that they want to, it's really a larger effort than what lies within a brand communication," said Julia Lyon, U.S. lead for sustainability communications at sustainability-focused consultancy Quantis. To improve recyclability or compostability, for example, there are infrastructure and public education-related barriers that must be addressed, she explained. "In order for all of this to work together, we do believe that more clear recommendations, stronger recommendations for how to use these terms is needed," Lyon said.

Sustainability News

The FTC Is Updating Guidance on Environmental Claims. Here's What That Means

The agency, tasked with protecting consumers, last updated the Green Guides in 2012

Kathryn Lundstrom

About

Subscriptions

Events

Publications

WORK SMARTER - LEARN, GROW AND BE INSPIRED.

Subscribe today!

Kathryn Lundstrom