FTC Cracking Down on Greenwashing

The Federal Trade Commission (FTC) is finally cracking down on greenwashing. The FTC charged three companies (Kmart, Tender Corp., Dyna-E International) with making false claims about paper products labeled "biodegradable" during testimony before the U.S. House Subcommittee on Commerce, Trade, and Consumer Protection of the Committee on Energy and Commerce.

Kmart labeled its American Fare brand paper plates "biodegradable," but agreed to remove the label. Tender Corp. labeled its Fresh Bath brand wipes "biodegradable," and Dyna-E International labeled its paper towels "biodegrabable." Tender also agreed to remove the label "biodegradable" from its products. The case against Dyna-E International will enter into administrative litigation.

Appearing before the House Subcommittee, James A. Kohm, Associate Director of the Enforcement Division in the Bureau of Consumer Protection at the FTC, said the FTC "alleged that the companies could not substantiate that their products would decompose into elements found in nature within a reasonably short period of time after customary disposal." Kohm said the "substantial majority" of the products, after being used, end up "disposed in landfills, incinterators, and recycling facilities."

The FTC said in its complaints, "American Fare paper plates will not completely break down and return to nature, i.e., decompose into elements found in nature, within a reasonably short period of time because a substantial majority of total municipal solid waste is disposed of by methods that do not present conditions that would allow for American Fare paper plates to completely break down."

During Kohm's testimony he mentioned the FTC filed charges against other companies, including home insulation companies for "overstating theinsulating properties of their products." He also mentioned that the FTC took action against companies marketing a devices which they claim "dramatically increase gas mileage in ordinary cars."

Since 1992, the FTC has published "Green Guides" about green marketing. Last year it held three workshops about how to better protect consumers from deceptive marketing, including greenwashing.

What is eBay's Greenteam?

To put it simply, eBay's Green Team is an internal group that works to make the company more environmentally friendly. The team became public on March 4. The business model of eBay, according to the Green Team, is to encourage people to resell items instead of throwing them out, and buy used merchandise instead of purchasing new products.

The Green Team began in 2007 with 40 eBay employees and now has over 1,000 employees involved. The Green Team's website contains a forum called Green Team Talks where people can exchange tips about "sustainable shopping."

eBay worked with the environmental consultant ICF International to green their facilities. Their newest building in San Jose, California is LEED Gold certified. It features an utomatic dimming system which adjusts electric lights to make use of natural light, results in estimated 39 percent energy savings. It is made of 95 percent recycled structural steel, contains 38 percent recycled carpet tiles and 100 percent recycled fabric. The campus contains a smart irrigation system which is a more efficient way to irrigate.

eBay's San Jose North facility has a 650 kilowatt solar energy system (3,248 panels on the roof) provide 18 percent of its energy needs).

A bit of greenwashing?

Michael Brune, executive director of Rainforest Action Group questions eBay's environmental creds. He pointed out that many of the items eBay sells are new. 

“It’s fair to say that buying used goods on eBay is better for the environment, but let’s not get carried away and say this is the greenest thing since recycled paper," Brune  said.

Paper Based Water Bottles Equal Greenwashing

Brandimage announced recently it created a paper-based water bottle that will question "the very existence of the plastic water bottle." The 360 Paper Water Bottle is made from pressed renewable plant fibers. There is one problem with the new bottled water brand: it is not needed. What is needed is for people to start drinking tap water in reusable water bottles.