You wouldn't label your product "red" if inspection reveals it to be blue. Similarly, a product or service should not be touted as "green" if it is not demonstrably environmentally friendly.
The Federal Trade Commission (FTC) imposes limits on the commercial use of terms such as "green," "eco-friendly," "recyclable" and "environmentally friendly" as part of its effort to prevent misleading and deceptive trade practices. Although federal laws and regulations do not explicitly address use of these terms, since the early 1990's the FTC has issued several versions of its "Green Guides," identifying certain practices with regard to "green" claims that the agency views as misleading or deceptive. Thus, the Green Guides provide a framework for businesses seeking to advertise their products and services as environmentally-friendly.
In 2010, the FTC released its first proposed revisions to the Green Guides in more than 10 years. Although the revised Green Guides have not been finalized to date, they provide a good indication of the FTC's current stance on "green" advertising practices. As proposed, the Green Guides discourage the use of unqualified general claims such as "eco-friendly," "environmentally friendly" and "green" in connection with any service or product, as such broad claims generally cannot be substantiated and are likely to mislead consumers. Advertisers seeking to use such terms should prominently include qualifying language that specifies which aspects of the product or service are "green." Any claims about the ecologically-friendly nature of a product or service, like any other claim made in advertising, must be backed by reliable evidence—which, in the case of environmental claims, typically consists of objective testing, research, analyses, or studies supporting the claim being made.
More specific guidelines apply to a number of other types of advertising claims, including claims that a product is recyclable, biodegradable, non-toxic, refillable, or derived from renewable materials. For example, a product labeled as "recyclable" must be capable of being saved from the solid waste stream for reuse, or in the manufacture of another product, through an established recycling program (i.e., if the method of recycling the product or packaging is not feasible for most consumers, it shouldn't be labeled as such). If only portions of a product are recyclable, the claim of recyclability must be explicitly qualified to specify which portions may, in fact, be recycled.
While the Green Guides themselves are not binding law or regulation, they provide valuable insight into the types of environmentally-related advertising claims the FTC considers to be unlawfully misleading or likely to deceive consumers.
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