The bMighty Blog -- Green Business

Green Backlash? FTC, Others, Question Greenwashing Business Claims

Posted by Fredric Paul Thursday, Jan 10, 2008, 12:59 PM ET

More and more folks -- including the Federal Trade Commission -- are starting to question the claims of businesses and processes -- like carbon offsets -- held out as environmental solutions.

I for one think it's about time. I want to be as green as the next guy, but I'm often skeptical of the claims that a particular business is eco-friendly -- especially when it's an oil company claiming the title -- or that a particular practice -- like banning plastic grocery bags -- will save the world.

I'm not ready to give up on going green, as bMighty editor Cora Nucci recently predicted many IT departments might be, but I'm thrilled to see a new emphasis on checking out the veracity of green claims.

The biggest news? This week the FTC hosted a public workshop looking into the whole business of carbon offsets and renewable energy certificates and how that money is actually spent. According to the New York Times (free registration required), carbon offsets are a $54 million US market, and the paper reports that FTC chairwoman Deborah Platt Majoras said the rapid growth means, “there’s a heightened potential for deception.” And "Panelists at the F.T.C.’s session on Tuesday raised a number of questions about certifications behind the claims, wondering if the offset companies might be double-counting carbon reductions that would have happened even without their efforts."

The Commission plans to update its guidelines on these issues, but you don't have to wait -- people everywhere are starting to look into these kinds of claims. For example, Conde Nast Traveler's January issue warns of False Advertising on green issues, and offers a Green Travelers Handbook.

Want more? Check out The GreenWashing Index, "the world’s first online interactive forum that allows consumers to evaluate real advertisements making environmental claims."

And remember that there's two sides of this story. First, you have a responsibility to check out the Green claims of the companies with which you do business. Second, make sure your own company's eco-friendly practices and marketing are legitimate and supported by the facts. People are watching, and small and midsize companies are especially vulnerable to bad publicity for being eco-hypocrites.


Green Business




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