Green trademarks and the risk of greenwashing; WIPO Magazine, December 2022

Kathryn Park , WIPO Magazine; Green trademarks and the risk of greenwashing

"Beware the green sheen – the perils of greenwashing

Guidelines promulgated by the Federal Trade Commission in the United States in the Green Guidesand by the European Union in its directive on Unfair Commercial Practices, offer clear guidance on what constitutes misleading information. Under both regimes, using vague terms such as “sustainable,” “green,” “eco,” and the like, are not acceptable if false or misleading. Additionally, claims need to be supported by clear factual evidence and qualified so as not to overstate their benefits. Moreover, the environmental benefit claim must pertain directly to the product as manufactured or used.

While regulators pursue companies that run afoul of consumer protection laws, claims are also pursued by non-governmental entities. Competitors may also sue, as will consumers who are misled, often as part of a consumer class action...

So what constitutes actionable greenwashing? An example is labeling something as compostable, such as a garbage bag that is destined for a landfill where it will not break down.  Claiming that something is recyclable when the infrastructure supports only a fraction of the recycling that would be required to remove the environmental harm ─ think plastic water and soda bottles ─ may also constitute greenwashing. There have been a number of lawsuits in the United States in the past year against Coca-Cola, Blue Triton Brands (which manufactures Poland Spring, Deer Park and other water brands), and others, for making broad sustainability claims despite the fact the vast majority of their bottles end up in landfills and are not recycled. These lawsuits have been filed by various environmental advocacy groups like the Sierra Club."