Electric Co-op Today

The Federal Trade Commission, which polices unfair and deceptive advertising, has proposed revisions to the guidance it provides for making environmental claims about products or services.

Jon Leibowitz

The proposed changes to the commission’s “Green Guides” include new guidance on “renewable energy” and “carbon offsets” claims, as well as on the use of product certifications and seals of approval. A summary of the lengthy proposal is available.

“In recent years, businesses have increasingly used ‘green’ marketing to capture consumers’ attention and move Americans toward a more environmentally friendly future,” said FTC Chairman Jon Leibowitz. “But what companies think green claims mean and what consumers really understand are sometimes two different things,” the chairman added.

“The proposed updates to the Green Guides will help businesses better align their product claims with consumer expectations.”

The changes to the Green Guides are based on the FTC’s studies of consumers’ reactions to various environmental claims, including “sustainable,” “recycled,” “biodegradable,” and products or services powered by renewable energy.

On carbon-offset claims, the proposed revised Guides advise marketers to disclose if the emissions reductions offset by a consumer’s purchase will not occur within two years. They also advise marketers to avoid advertising an offset if the activity that produces it is already required by law.

The proposed changes represent the first time that the FTC has looked at renewable energy and offsets specifically, said Tracey Steiner, NRECA deputy chief member counsel.

While “the commission’s proposals are modest,” Steiner said, co-ops should know that the FTC takes a very broad view of what constitutes advertising, including websites and brochures.

“So if a co-op is promoting a green power program, that’s advertising,” she noted.

The FTC is seeking public comment on the proposed changes until Dec. 10, and will then decide which changes to finalize.

NRECA has reached out to other industry trade groups and some members and would like to hear from other co-ops about the FTC’s specific proposal. Based on the feedback received, the association will decide whether to file comments, Steiner added.

Tags: Energy and Environment, Federal Trade Commission, Green Energy