Green MarketingWhat is it?Examples of “green” advertising claims?Why do companies use it?Are there problems of deception with “green” claims?Why are consumers fooled by such claims?Slide 7What do the Guides cover?Slide 9260.6 General Principles260.7 Environmental Marketing ClaimsSlide 12Slide 13Slide 14Slide 15Slide 16Slide 17Slide 18Slide 19Slide 20Slide 21Slide 22Green PowerWhat types of power are “green”?Why is green power attractive to consumers?What are the “dirtiest” energy sources?What are the green power options?Slide 28Slide 29Consumer Protection Issues in Green Power1. Voluntary certification2. State standards3. National Association of Attorneys General (NAAG)--Environmental Marketing Guidelines for ElectricityGreen Power in VermontGreen MarketingGreen MarketingWhat is it?What is it?Using claims about a product's Using claims about a product's environmental "friendliness" in order environmental "friendliness" in order to promote the productto promote the productExamples of “green” advertising Examples of “green” advertising claims?claims?biodegradablebiodegradablecompostablecompostablerecyclable/recycledrecyclable/recycledenvironmentally safeenvironmentally safeozone friendlyozone friendlyWhy do companies use it?Why do companies use it?Research shows that consumers Research shows that consumers prefer--and are willing to spend more prefer--and are willing to spend more money on--products they perceive as money on--products they perceive as environmentally safeenvironmentally safeMore than half of American More than half of American consumers have purchased a product consumers have purchased a product because of a label that said it was because of a label that said it was environmentally safe or environmentally safe or biodegradablebiodegradableAre there problems of deception Are there problems of deception with “green” claims?with “green” claims?Keyes Keyes FibreFibre Company's Company's claims for Chinet claims for Chinet disposable tablewaredisposable tableware•biodegradablebiodegradable•compostable in municipal solid waste compostable in municipal solid waste composting facilitiescomposting facilities•RecyclableRecyclableIn fact, according to the FTCIn fact, according to the FTC•Won’t degrade in landfillWon’t degrade in landfill•Few municipal composting facilitiesFew municipal composting facilities•No facilities accept it for recyclingNo facilities accept it for recyclingWhy are consumers fooled by such Why are consumers fooled by such claims?claims?consumers generally can't tell consumers generally can't tell whether a product will do what the whether a product will do what the advertiser claimsadvertiser claims•degrade in a landfilldegrade in a landfill•not deplete the ozone layernot deplete the ozone layereven if the claims are true, it may even if the claims are true, it may not be evident for five, ten, fifty or not be evident for five, ten, fifty or more yearsmore yearsAs a result of concerns about growing As a result of concerns about growing use of such claims, the FTC issued use of such claims, the FTC issued Guides for the Use of Environmental Guides for the Use of Environmental Marketing ClaimsMarketing ClaimsWhat do the Guides cover?What do the Guides cover?Any way in which a message can be Any way in which a message can be receivedreceived labelinglabeling advertisingadvertising promotional materialspromotional materialsAny form a message can takeAny form a message can takewordswordssymbolssymbolsemblemsemblemslogoslogosdepictionsdepictionsproduct brand namesproduct brand names260.6 General Principles260.6 General Principles(a) Any qualifications or disclosures (a) Any qualifications or disclosures should be sufficiently clear, should be sufficiently clear, prominent and understandable to prominent and understandable to prevent deceptionprevent deception(b) Claim should make clear whether it (b) Claim should make clear whether it applies to the product or the packageapplies to the product or the package(c) Claims should not overstate the (c) Claims should not overstate the environmental attribute or benefitenvironmental attribute or benefit260.7 Environmental Marketing 260.7 Environmental Marketing ClaimsClaims(a) General claims (e.g., “eco-safe”) (a) General claims (e.g., “eco-safe”) must bemust benot misleadingnot misleadingsubstantiated in advance of the claimsubstantiated in advance of the claim•burden of proof on advertiserburden of proof on advertiser(b) Claims of degradability, (b) Claims of degradability, biodegradability, and photodegradabilitybiodegradability, and photodegradabilityare deceptive unless there is are deceptive unless there is scientific evidence that the entire scientific evidence that the entire product or package will product or package will completelycompletely break down and return to nature (i.e. break down and return to nature (i.e. decompose) within a reasonably decompose) within a reasonably short period of timeshort period of time(c) Claims of compostability (of the (c) Claims of compostability (of the product or package)product or package)are deceptive unless all the materials are deceptive unless all the materials in the product or package will break in the product or package will break down into usable compost in a safe down into usable compost in a safe and timely mannerand timely manner•in an appropriate composting facility; orin an appropriate composting facility; or•a home compost pilea home compost pileare deceptive ifare deceptive if•the item is not compostable in a home the item is not compostable in a home compost pile; andcompost pile; and•there are no institutional or municipal there are no institutional or municipal composting facilities in the community composting facilities in the community where the item is soldwhere the item is sold(d) Claims of recyclability(d) Claims of recyclabilityare deceptive unless the product or are deceptive unless the product or package can be collected, separated or package can be collected, separated or otherwise recovered from the solid waste otherwise recovered from the solid waste streamstream•for reuse; orfor reuse; or•in the manufacture or assembly of another in the manufacture or assembly of another package or productpackage or product•through an established recycling programthrough an established