FTC Charges 6 Companies for Misleading & Unsubstantiated Environmental Marketing Claims


30 October 2013

For the first time ever, the US Federal Trade Commission (FTC) is taking action again companies for making deceptive claims about biodegradable plastics. It has announced enforcement actions against 6 different companies, including a $450,000 civil penalty case against one company. This is part of the agency’s clampdown on false and misleading environmental claims.

The complaints include:

  • A complaint against a company that markets an additive it claims makes plastic products biodegradable
  • A complaint and consent order against a company for violating a 1994 FTC order that prohibited it from making unsupported green claims for its paper plates and bags.
  • Four complaints and proposed consent orders against companies that marketed various plastics with allegedly false and unsupported claims that their products were biodegradable.

All of these cases are part of the FTC’s program to attempt to crackdown on deceptive claims and ensure compliance with their recently revised 'Green Guides'.  The Commission publishes ‘Green Guides’ to help businesses market their products accurately and  provide guidance as to what constitutes deceptive and non-deceptive environmental claims.

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Written by complianceandrisk