The Truth About Green Marketing
We are now living in a world in which environmental factors have become a concern in everything that we do. From recycling to fuel efficiently, most Americans are now concerned with how their lifestyle effects the sustainability of the planet. Furthermore, many are now watching the types of products that they use, and are making sure that these products are environmentally friendly.
According to the American Marketing Association, green marketing is the marketing of products that are presumed to be environmentally safe. Green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising.
The past decade has shown that harnessing consumer power to effect positive environmental change is far easier said than done. The so-called “green consumer” movements in the U.S. and other countries have struggled to reach critical mass and to remain in the forefront of shoppers’ minds. However, because of the growing global concern about climate change, many companies now advertise their commitment to reducing their climate impacts and the effect this is having on their products and services as a means of attracting consumers who have become aware.
Green marketing is a technique that is growing exponentially. One of green marketing’s challenges is the lack of standards or public consensus about what constitutes “green”. This lack of consensus—by consumers, marketers, activists, regulators, and influential people—has slowed the growth of green products because companies are often reluctant to promote their green attributes, and consumers are often skeptical about these claims.
How will we, as consumers, know what to believe when it comes to green marketing? Sure, we want to buy products that are sustainable or are made with concern in regards to the environment, but it seems as though every company is making the claim about being “green”. Recently, the FTC began reviewing its Green Guides to lay out the groundwork for what constitutes a green claim. These guidelines should help consumers decipher what is real and what is not when it comes to green marketing.
The Green Guides was designed to help marketers avoid making environmental claims that are unfair or deceptive under Section 5 of the FTC act. However, I have found that referring to these guidelines can also help consumers decipher what is real when it comes to green shopping. The Green Guide breaks down its guidelines in this manner: biodegradable, compostable, recyclable, recycled content and ozone safe. These are the pillars of what defines a product or a company as “green”.
In addition to the original Green Guides, the FTC and the CBBB, Council of Better Business Bureaus, have recently issued some key revisions to the guide:
- Marketers should not make unqualified general environmental benefit claims such as “green” or “eco-friendly”.
- Seals and Certifications are considered “endorsements.” This means that marketers may need to disclose any material connections with the certifier. Third-party certification does not eliminate a marketer’s obligation to have substantiation for its claims.
- An unqualified claim that a product or package is biodegradable means that it will completely decompose is no more than one year after customary disposal.
- The Guides address claims of recyclability and introduce a three-tiered analysis for disclosing the limited availability of recycling programs.
- Marketers making “renewable energy” claims should specify the source of the renewable energy. If a company sells Renewable Energy Certificates (RECs) for the renewable energy they generate, it should not represent that they use renewable energy.
- Marketers making “carbon offset” claims should disclose if the offset purchase funds emission reductions that will not occur for two years or longer.
When shopping for green products, it is important to understand what green really entails. Many companies simply claim to be green as a way to attract shoppers who are conscious of the environment, and want to do their part. Other products have been designed legitimately to be environment friendly, and it is these products that we want to buy. While at times it may be nearly impossible for the consumer to decide what is green and what is not, these Green Guides should help restore clarity and integrity to the process, so that buy the time the product is on the shelf, it will have earned its green label.
The FTC has a variety of consumer resources to help explain certain environmental claims and other energy issues. The FTC has issued two brochures that are an excellent starting point: “Sorting out ‘Green’ Advertising Claims”: http://www.ftc.gov/bcp/edu/pubs/consumer/general/gen02.shtm
And “Eco-Speak: A User’s Guide to the Language of Recycling”: http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt049.shtm
For more information about the Green Guides, consult the Energy and Environment website at http://www.ftc.gov/energy
