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This publication provides the FTC Staff's view of the law's requirements.
It is not binding on the Commission.
Introduction
The Federal Trade Commission (FTC) seeks to prevent deception and unfairness in the marketplace. The FTC Act gives the Commission the power to bring law enforcement actions against false or misleading marketing claims, including environmental or "green" marketing claims. The FTC issued its Environmental Guides, often referred to as the "Green Guides," in 1992, and revised them most recently in 1998. The Guides indicate how the Commission will apply Section 5 of the FTC Act, which prohibits unfair or deceptive acts or practices, to environmental marketing claims.
Like other industry guides issued by the FTC, the Environmental Guides "are administrative interpretations of laws administered by the Commission for the guidance of the public in conducting its affairs in conformity with legal requirements." Conduct that is inconsistent with the positions in the Environmental Guides may result in corrective action by the Commission, if after investigation, the Commission has reason to believe that the conduct violates prohibitions against unfair or deceptive acts or practices.
The Environmental Guides apply to all forms of marketing for products and services: advertisements, labels, package inserts, promotional materials, words, symbols, logos, product brand names, and marketing through digital or electronic media, such as the Internet or email. They apply to any claim, express or implied, about the environmental attributes of a product, package or service in connection with the sale, offering for sale or marketing of the product, package or service for personal, family or household use, or for commercial, institutional or industrial use. See the complete text of the Environmental Guides.
This booklet provides the FTC staff's view of the law's requirements. It is not binding on the Commission.
Environmental Marketing Claims
The FTC looks at all advertising from the consumer's perspective: what message does the advertising actually convey to consumers? The Environmental Guides explain how consumers are likely to interpret environmental marketing claims so that marketers can avoid making false or misleading claims. The Guides give environmental claims the meaning that consumers give them, not necessarily the technical or scientific definition of terms. Also, they do not establish standards for environmental performance or prescribe testing protocols.
For environmental claims that the Guides do not address specifically, FTC law requires substantiation for all reasonable interpretations of an ad. Sometimes, it may be necessary to do research to determine how consumers interpret an ad.
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