May 20, 2010

Consumers and the Federal Trade Commission (FTC) have begun challenging the "environmentally friendly" claims of various products.  

At least four consumer lawsuits have accused companies of using misleading advertising about products' environmental impact, with some seeking class-action status.

The companies stand accused of, among other things: adding self-designed labels that imply their products have won some third-party seal of approval; promoting products as "biodegradable" when there is little chance they would actually decompose in a landfill; and mislabeling rayon fabric as bamboo.

In February, the FTC sent letters to 78 retailers, warning them that labeling rayon a bamboo fabric is potentially misleading and could subject them to civil suits.  The FTC can prohibit statements likely to mislead a "reasonable consumer."  The Commission is expected to update its "Green Guides," a set of recommendations and guidelines on environmental marketing claims, later this spring.