Federal Trade Commission mulls over revising guidelines concerning environmental claims
The Federal Trade Commission (FTC) has announced that it is reviewing its Green Guides for environmental marketing claims, a move driven by the increasing consumer interest in buying environmentally friendly products. First published in 1992, the Green Guides have been a valuable resource for brands seeking to make truthful and non-deceptive environmental claims.
According to FTC Chair Lina Khan, consumers are increasingly concerned about how products contribute to climate change, pollution, and the spread of microplastics. As a result, they want to make informed decisions when purchasing goods. The Green Guides are intended to help brands avoid using unfair or deceptive statements that may mislead consumers.
The retail industry, including apparel and beauty spaces, is seeing a growing demand for sustainable products. Plenty of retailers have joined self-governing organizations to demonstrate their commitment to environmental causes. One such measure is the Higg Materials Sustainability Index, created by the Sustainable Apparel Coalition, a group that H&M is a member of.
However, verifying environmental claims made by businesses can be challenging for the average consumer. With retailers making claims about their products' low carbon footprint, energy efficiency, and sustainability, it's crucial for the FTC to ensure that these claims are truthful and accurate.
The FTC is seeking public comment on potential updates to the Green Guides, particularly regarding claims surrounding carbon offsets, climate change, the use of the terms 'recyclable' and 'recycled content', and any need for additional guidance. The organization hopes to update the Green Guides to more accurately reflect rising consumer interest in environmental claims.
In a recent survey by Deloitte, it was found that shoppers are more likely to name a consumer packaged good as their most recent sustainable purchase. Four in 10 shoppers also choose a sustainable good often or whenever possible. The FTC, along with Bureau of Consumer Protection Director Samuel Levine, emphasizes the importance of truthful environmental claims to consumers, who depend on them to make informed decisions.
Despite the challenges, the retail industry's commitment to sustainability is evident. However, proving claims of sustainability can be difficult due to a lack of more regulated standards in the U.S. This is a concern that the FTC aims to address with the updates to the Green Guides.
Recently, Norway's consumer watchdog agency warned fast-fashion retailer H&M about its usage of the Higg Materials Sustainability Index, stating it likely goes against the country's rules on sustainability claims. This underscores the need for clear and consistent guidelines to ensure truthful environmental marketing claims.
As the FTC moves forward with revising the Green Guides, it's clear that the focus will be on providing current, accurate information that empowers consumers to make informed decisions about the products they purchase. This is a significant step towards promoting transparency and sustainability in the retail industry.
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