Federal Trade Commission weighs greenwashing crackdown

The “Green Guides,” first released in 1992, were created to assist businesses in making legitimate environmental marketing claims while assisting the general public in differentiating between green and nonsense. There is also a significant gray area because the FTC purposefully chose not to include recommendations on “sustainability” or “organic” in its Green Guides in order to avoid duplication with the National Organic Program’s organic food recommendations. The Guides haven’t been updated since 2012, which means that the fashion world is largely in the dark.

The Federal Trade Commission unanimously decided to review the Green Guides during a public committee hearing on Wednesday. In order to update the Guides, the FTC will therefore solicit feedback from the public as part of its routine review process.

According to Lina Khan, chair of the FTC, during the live stream, false promises can “distort” the market and harm trustworthy businesses.

Prior to the vote, members of the public spoke to the Commission and demanded that the Guides be reviewed. These organizations included the American Chemistry Council, a national trade association that brings together the major players in the plastic packaging industry, as well as advocacy group Politically In Fashion and apparel industry trade associations like The American Apparel and Footwear Association, or AAFA.

According to Chelsea Murtha, director of sustainability at the AAFA (which represents about 1,000 firms), modernity demands that the Green Guides’ regulatory evaluation be started.

Murtha added that since 2012, the sustainability landscape had seen significant transformation… Environmental claims are being questioned more and more by consumers. Strong guidelines on greenwashing would be advantageous for both consumers and businesses.

Given the prevalence and rising significance of green marketing for both consumers and marketers, many parties have been eagerly expecting the launch of the FTC’s Green Guides assessment. The focus of this action, as with the previous review, will be on altering how consumers perceive environmental marketing claims, according to Laura Kim of Covington & Burling LLP, who spoke to WWD. While serving as the chief of staff for the FTC’s Bureau of Consumer Protection, she was one of the architects of the Green Guides.

Last year, more than 40 members of the industry, driven in part by organizations like Politically in Fashion, pushed for changes to the Green Guides.

Hilary Jochmans, the founder of Politically in Fashion, stated that the information that buyers are looking for “must be truthful, reasonable, and helpful to the typical shopper.” A “timely” evaluation period is what she aspires for.