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The FTC Green Guides...

Made Simple

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Introduction

On October 1, 2012, the Federal Trade Commissio

released its long-pending revisions to the Guides the Use of Environmental Marketing Claims (more

commonly known as the Green Guides.)

These revisions – the rst in 14 years – reect the profound change

that have taken place in the production and marketing of green

sustainable products and services. They underscore the increasing

importance of sustainability in our society, along with a growing

intolerance of misleading environmental claims (greenwashing.)

Will the release of the revised Green Guides result in increased

enforcement on the part of the FTC?

At the time of this writing, it’s too soon to tell – but FTC experts beli

will. Clearly, immediate compliance with the latest version of the G

Guides is in order for any company that values its reputation.

This report is intended to help you navigate the tricky waters of FTC gmarketing compliance. This is not a point-by-point explanation of th

guidelines, as the FTC itself provides a very nice summary of the Guid

(we’ve included the link to it in Appendix D.) Rather, we will focus on

the “reasons why” behind the Green Guides, especially the “heart o

green marketing,” transparency. We will examine the risks and bene

making green claims for your products, and introduce you to our Q

method for achieving transparency and compliance in your marke

At the end of this report you will nd additional tools and information

help you maintain FTC compliance. These include a printable remin

card outlining the main points of the Q.U.I.E.T. method; a special sec

on eco-labels; a link to an interactive quiz to test your knowledge of

updated Green Guides; and an extensive list of additional resource

But rst, let’s take a look at how the Green Guides can affect you

business.

“The release of the revised Green

Guides will likely lead to more

enforcement by the FTC... and

an increase in actions between

competitors to force compliance

with the guidelines.”

 Mary Ann Mullin and Daniel J. Deeb,

environmental attorneys with national law rm

Schiff Hardin LLP

Contents

Introdcution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Part 1: The Green Guides and YouWhat are the Green Guides and why are they important? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Beware the Lurking Tiger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Examples of FTC and other enforcement action* on green claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Befriending the Tiger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Taming the Tiger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Transparency: the Heart of Green Compliance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Part 2: The Q.U.I.E.T. Method for Transparency in Environmental Messaging. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Quantify & Qualify . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Understand Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Practice Integrity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Empathize . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Third Party Certify . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

The Q.U.I.E.T. Advantage in Compliance and Beyond. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

Appendices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Appendix A: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Appendix B: Interactive Quiz. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Appendix C: More Information on Eco Labels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Appendix D: Additional Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

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What are the Green Guide

and why are they importan

The Federal Trade Commission’s Green Guides are

group of guidelines contained within Title 16 of the

Government’s Code of Federal Regulations. They a

self-described as “a series of general principles an

specic guidance on the use of environmental cla

The Green Guides are not laws; rather they are administrative

interpretations of existing law. Specically, they are meant to cl

and elaborate on Section 5 of the FTC Act, which prohibits ‘‘un

deceptive acts or practices in or affecting commerce.’’ Legally

Green Guides are considered ‘persuasive authority,’ and may b

used in court to back up complaints of deceptive advertising a

unfair business practices.

As we shall see, the Green Guides do have clout and can be use

court actions involving environmental marketing.

“Conduct inconsistent with the positions

articulated in these guides may result in

corrective action by the Commission…

if, after investigation, the Commission

has reason to believe that the behavior 

falls within the scope of conduct

declared unlawful by the statute.”

 – Federal Trade Commission

Part 1: The Green Guides and You

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Beware the Lurking TigerSo…what is the likelihood of getting smacked by t

FTC should you violate the principles laid out in the

Guides?

Honestly, slim — but real. And now that the new revisions have b

made ofcial, the FTC is much more likely to go on the offensive.

In their 2010 Greenwashing Report, sustainability consulting rm

TerraChoice revealed a shocking statistic. They found that 98% of

green marketing claims analyzed in 2009 violated at least one of t

“Seven Sins of Greenwashing.”

Clearly, almost no one is 100% compliant – and in the vast majority

cases, no one has come to task.

But times are changing. Due in part to TerraChoice’s report, tolera

for misleading environmental claims has plummeted. Although le

action by the FTC has been scant to date, enough instances hav

already occurred to prompt one commentator to dub the agenc

a “lurking tiger.”1 The FTC is capable of unleashing a major wave o

enforcement at any time – a scenario made even more likely by t

agency’s ofcial adoption of the revised Guides.

And the FTC is not the only tiger in the bush. The Green Guides are th

ultimate guidelines for settling environmental marketing disputes of

all kinds. They serve as the template for green marketing regulations

in several states, including California, Maine, Minnesota and Rhode

Island. They are also referenced by the National Advertising Division

advertising industry’s self-regulatory organization) when settling dispu

regarding green claims.

As Annie Mullin and Dan Deeb of law rm Schiff Hardin put it, “We

believe there will be an increase in private party actions because

marketers have more ammunition to bring actions against a

competitor if the competitor is making a deceptive green claim.”

Attorney Thomas Cohn, former director of the FTC’s Northeast reg

agrees. “With the FTC closely scrutinizing green claims,” he says, “

particularly important that marketers’ enthusiasm be balanced ag

compliance ofcers’ concerns.”

1 Cole, Christopher, Regulation of Green Marketing: The State of Play in Summer 2011, En

mentalLeader.com,August 18, 2011.

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Befriending the Tiger

It would be a mistake, however, to view the Green

Guides as nothing but an annoying obstacle to

effective marketing.

The Federal Trade Commission crafted the Green Guides in respo

deep-seated changes in society itself, and in consumer attitudes

preferences. They are meant to help ease the transition for all invo

As the agency itself proclaims, “guidance from the FTC can bene

both businesses and consumers alike.”

Like it or not, today’s consumer is a completely different animal th

(s)he was in the heyday of Madison Avenue. Today’s consumers

are highly informed. They have the world’s wealth of information

available to them at the press of a thumb – including detailed, int

information about your company, your products, your supply cha

and the experiences of their fellow consumers.

They’re also more apt to care about social and environmental issu

than past generations of consumers, and of course they are high

connected through social media, email, mobile phones and othetechnologies. That means there’s no hiding mistakes, or brushing

consumer inquiries or complaints under the rug. The rug no longe

The good news? Becoming compliant doesn’t have to undermine

protability. In fact, it may even increase your ROI.

“Our purpose is to make sure consumers

that want to buy green products are

getting truthful information. There are

two kinds of companies; those thatlive over the line and those that step

over the line. The guides are written for 

companies that are trying to get it right.”

 James Kohn, associate director of enforcement for 

the FTC’s bureau of consumer protection

Examples of FTC and other enforcement action* on green claims:

* The FTC is by no means the only entity to regulate (and enforce) green marketing claims. At the federal level, environmen-

tal claims are addressed under Section 43a of the Lanham Act. Several states, including California, Indiana, Wisconsin and

Michigan, have also developed laws that specically address green marketing claims (see Appendix B).

• October, 2012: The FTC takes action against two paint companies for making

untruthful “Zero VOC” claims.

• February, 2012: The FTC settles charges against 5 window manufacturers for 

deceptive energy and cost savings claims.

• February, 2012: Honda Motor Company loses small claims suit over 

misrepresentation of hybrid fuel economy. Honda also came under attack for the

same issue in a separate class action suit.

• July, 2011: S.C. Johnson settles two class action suits brought against the company

by consumers feeling misled by S.C. Johnson’s green labeling on its Windex

products.

• January, 2011: FTC sues eco-labeling company Tested Green under the FTC Act

and bans them from doing business. The company had been selling fraudulent

eco-certication labels to businesses.

• February, 2010: FTC warns 78 retailers, including Wal-Mart, against misleading

claims on “bamboo” clothing.

• June, 2009: FTC charges Kmart and two other companies with making false and

unsubstantiated biodegradability claims.

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8

Transparency: the Heart o

Green Compliance

The Green Guides exist for one reason only: toprotect consumers from deception in environment

marketing. The FTC doesn’t care what you sell or fo

what purpose, as long as your claims are truthful a

easy for the average Joe to interpret. Despite the

complexity of the Green Guides, there’s really only

one way to achieve this goal: transparency.

If you’re not familiar with the term, transparency means full disclo

It means being open and honest about the methods, materials

and procedures your company uses. For instance, if your website

packaging or Facebook page asserts that the tennis shoes you

manufacture are made with organically grown cotton canvas us

fair labor practices, be prepared to prove your claims, preferably

third-party verication.

Transparency itself is a relatively simple idea. What’s not always so

simple is integrating it into your marketing, especially when you’re

 juggling multiple projects and goals. To help you with this task, we

developed a system we call the Q.U.I.E.T. Method for Transparenc

Environmental Marketing.

Q.U.I.E.T. stands for:

  Q - Quantify & qualify

  U - Understanding sustainability

  I  -  Integrity

  E - Empathy, and

T - Third-party certication

Together, these 5 key elements can help you achieve greater 

transparency and compliance in your environmental marketing.

take a look at each one in turn.

The concept of transparency is so ultra

critical that when the question “What’s

the most important element in a Green

marketing campaign?” popped upduring a small-group discussion at

a Green marketing conference we

attended in 2009, all eight of us at the

table practically shouted in unison,

“Transparency!”

Inbound marketing uses content and

information to attract customers by

quietly building relationships with them

rather than aggressively “pushing”messages out at the consumer. This

type of marketing tends to be very

compatible with green compliance,

since it provides ample opportunity to

qualify and explain.

A 2012 survey by Hubspot found that

companies relying heavily on inbound

marketing channels such as blogging,

content publishing, SEO and social

media enjoyed a 61% lower cost

per lead than organizations whose

marketing is dominated by outbound

methods like telemarketing, direct mail,

ads and trade shows.

Taming the Tiger

Because the FTC’s guidelines are ultimately a

reection of consumer concerns and thought patterns,

following them can help you reach your prospects

more effectively. Many companies are already turning

to practices that are highly compatible with Green

Guide suggestions in response to the consumer trends

mentioned above. As a result, they are enjoying

increased customer trust, loyalty, social sharing, and,

ultimately, sales.

Once you’re comfortable with the Green Guides you may even begin

to see them as a friendly ally. Green Guide compliance can:

• Assist you in making truthful claims and avoiding consumer complaints

about greenwashing

• Level the playing eld by sheltering you from FTC action and leaving

non-compliant competitors open to disciplinary action, and

• Improve your bottom line by reducing consumer confusion and

disillusionment, and encouraging consumer interest in green products

Moving forward with Green Guide compliance

We’ve just discussed what the Green Guides are and how they

can affect your company. Now it’s time to develop a deeper 

understanding of the principles behind the Guides, to help you more

easily achieve compliance.

Let’s start by exploring the heart of the matter: transparency.

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Quantify & Qualify.Whenever you make any sort of environmental benet statement

sure to take the time to explain exactly what it means, and what

numbers are. This will help clarify your message and prevent consu

from jumping to incorrect conclusions.

Here are some pointers:

• Avoid vague or unsubstantiated claims. Be sure to qualify and

explain your environmental statements. If you have a new, m

environmentally friendly package, don’t just say, “New eco-

friendlier box.” Qualify and quantify it by saying “Uses 25% less

cardboard than our old box and printed with soy ink on 35%

recycled paperboard.”

Doing it this way explains exactly why and by how much it’s e

friendlier, and what it’s being compared to.

• Especially, avoid general environmental claims, such as “gre

choice,” “eco-friendly,” “good for the earth,” etc. General cl

are way too vague and open to misinterpretation. For examp

27% of consumers in an FTC study interpreted “green” to mea

the product had no negative environmental impact – clearly

almost impossible achievement!

If you must use a general environmental claim, be sure to qua

it by directing the consumer’s attention to specic, veriable

environmental benets. For example, “Eco-friendly constructi

made with 95% recycled materials.”

• Be as specic as possible. Give lots of details. Leave little mar

for error. Include any relevant statistics, and be sure to explain

special circumstances that apply to your claim.

• Use clear language. Avoid overly complex sentence structure

statements that can be interpreted in multiple ways.

“Quantify and Qualify” is the easiest of the ve elements to achiev

also illustrated over and over again in the Green Guides’ example

However, it’s also important to have at least a basic level of familia

with sustainability issues, as we’ll see in the next section.

Remember: The Green Guides require

you to be able to prove beyond doubt

any environmental claim you make. It’s

very important to have access to hard,

scientic data about your products.

You don’t necessarily have to disclose it

(although that’s not a bad idea), but be

sure you can provide proof if needed.

Research – including the FTC’s own – 

has shown that general environmental

claims lead to all kinds of assumptions.

Consumers may interpret them to

mean your product is recycled, made

from renewable energy, or possesses

any of dozens of other benecial

attributes. This leaves your “eco-

friendly” claim dangerously vulnerable

to misinterpretation.

If you truly don’t have room to include

all the information you would like to,

you can always include a web address

where people can read more about your 

product, service or company. But be

careful – in some cases you may need

to place a disclosure in close proximity to

the claim. Check the Guides!

Part 2: The Q.U.I.E.T. Method for 

Transparency in Environmental Messaging

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12

The Business Case for Sustainability

“Nobody’s asked me to talk about the business case (for sustainab

for several years. From our point of view it’s proven. It’s a done d

Let’s get on with it.” - Peter White, Director of Global Sustainab

Proctor & Gamble

The link between sustainable practices and protability is no longer in do

No wonder so many of America’s largest and most successful brands (

Mart, Nike, FedEx and HP, to name just a few) are embracing sustaina

measures throughout their operations. Many of these were suggeste

their own employees.

If sustainability is important to you, and your company is not yet explo

sustainable options, why not suggest a few ways to save resources

money in your own department? Who knows, you may become a he

your company — and it’ll certainly give you lots to blog about!

Understand Sustainability.The Green Guides are all about protecting consumers from deception

in environmental marketing. “Deception” is a harsh word. Most

marketers “guilty” of greenwashing aren’t intentionally trying to mislead

consumers. Many are honestly trying to help build a friendlier, moresustainable world while making a prot.2 It can come as a real shock 

when honest efforts are rewarded with accusations of greenwashing — 

or even litigation.

You can reduce your likelihood of committing unintentional

greenwashing by learning – and implementing – as much as you can

about sustainable practices. For instance, the Green Guides now

require marketers to analyze any environmental trade-offs resulting

from a claimed benet. This is impossible to do without at least a basic

understanding of sustainability principles.

Keep in mind that sustainability is a very complex topic. Learning

about it is a process rather than a task to be completed. The more you

know the more layers of complexity you are likely to discover. Don’t be

surprised if you nd yourself changing the way you think about virtually

everything!

We’ve included a list of books and other resources in Appendix A tohelp you and/or your staff learn more about sustainable thinking.

If you are not sure of your ability to communicate clearly about

environmental topics, enlist the help of someone who can. When

hiring a writer, editor or designer, look for someone wh o has a deep

understanding of sustainability and has experience in green product

promotion. Above all, be sure they understand how both mainstream

and eco-conscious consumers are likely to interpret green messaging.

As your understanding of sustainability improves, so will your insight into

consumer motivation and confusion when purchasing green products.

A deep understanding of sustainability – whether your own or an outside

expert’s – will help you avoid statements that may be misleading. It will

also assist you with the next part of the Q.U.I.E.T. method: environmental

Integrity.

 2 This is known as the “Triple Bottom Line” – business that supports People, Planet and Prots.

It is a key element of today’s sustainability movement.

Supercial improvements (such as

switching to recycled paper) may not

be good enough anymore. You need

to know how that change might

affect the planet in hidden ways. (For 

instance, recycled paper that has to

be shipped long distances may have

a worse impact on the planet than

locally-sourced virgin paper.) Analyze

the impact of any action before

claiming environmental benets.

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14

• Avoid hype. If your branding includes “high-testosterone” 3 c

 — whether B2B or B2C — be careful about making green clai

It’s easy for this kind of copy to get prospects so excited abou

a product that they jump to conclusions – which may lead to

accusations of deception once the spell has worn off.

It’s quite possible to cut hype successfully – even in B2C camp- without sacricing response. Try focusing more on involveme

contests, and social proof. Make yourself an invaluable resou

by providing lots of useful content. You may nd that you enjo

higher level of customer trust and referrals.

• Don’t twist the truth. A common (and effective) tactic in sales

copywriting is to tell the literal truth…but in such a way as to m

it seem much better than it is. Unfortunately, this approach is

proposition in green marketing.

Save the logic twisting for getting your kids to eat their veggie

Stay straight when you’re making green product claims.

• Be open. Of course you don’t want to disclose trade secrets o

give away the details of your next launch. But companies wi

integrity have little to hide. And being open and transparent

your policies and operations can be a protable move. (See

page for a real world example.)

• Be honest.  Your deep knowledgeable about sustainability ca

help your company avoid unsavory situations in the rst place

it’s awfully hard to be in business and not “cut a few trees” –

if by accident.

Remember that old story about George Washington and the

cherry tree? If you make a mistake and someone calls you o

pull a George and fess up. Then go a step further and do wha

takes to correct the situation.

Don’t hide controversial facts thinking no one will notice. They

If someone is upset, respond promptly and truthfully, and do

everything possible to make amends. This will help defuse the

situation. As will the next element of the Q.U.I.E.T. Method, em

3 Experts on marketing to women agree that hype-ridden copy (developed during

early and mid-20th century when men made a greater percentage of purchasing

 sions) tends to turn women off. In our personal experience, more environmentally

consumers (as well as engineering types) also tend to react negatively to a loud, e

overly hyped tone.

Practice Integrity. Like race, gender or politics, sustainability can be a loaded topic. It

can elicit strong emotions and involve a deep level of personal identity.

The worst mistake you can make for your company is to start making

green claims for the sole purpose of increasing market share, withoutconsidering how they will impact your brand.

The following tips offer specic things you can do to maintain integrity in

your messaging:

• Dene your company’s environmental policy. Be aware that

by simply mentioning the words “sustainable” or “green” in

conjunction with your company or product, you’ve already begun

to dene, or redene, your brand in terms of sustainability.

Rather than allowing this process to develop haphazardly, it’s a

good idea to take control of it and put some thought into your 

company’s environmental philosophy. A good place to start, if

you haven’t already, is with a Corporate Sustainability Statement.

This is a short document dening what sustainability means to your 

company and some of the measures you are taking to support it.

Once this is in place, an annual Sustainability Report can help youstay aligned with your goals, as well as letting stakeholders know

what you’re doing to meet them.

• Be consistent. Once you’re clear on your position in regards to

sustainability, it’s imperative to keep your green messaging – along

with your company’s other actions – consistently aligned with it.

This includes supply chain and sourcing, CEO statements, HR policy

and operations. Be aware, too, of your company’s charitable

giving.

It may not always be possible to completely avoid inconsistency,

especially if you are not an upper level decision maker. But the

closer you can keep your company’s green messaging aligned

with its actual practices, the better for your brand, and the more

likely you are to earn continued loyalty from your customers.

Don’t put yourself in the situation

General Electric did when they

earned bad press by simultaneously

claiming to be “part of the solution”

to climate change, while donating

to a think tank promoting climate

change skepticism.

“The introduction of environmentally

friendly products into the marketplace

is a win for consumers who want to

purchase greener products and for 

producers who want to sell them. But

this win-win can only occur if marketers’

claims are truthful and substantiated.

The FTC’s changes to the Green Guides

will level the playing eld for honest

business people and it is one reason

why we had such broad support.”

- FTC Chairman Jon Leibowitz

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Empathize.Having empathy with your prospect is nothing new. Successful

marketing campaigns depend heavily on thinking like the prospe

keying in to his deepest emotions.

Maintaining Green Guide compliance, however, requires that you

empathize with his intellect.

This means realizing that:

• Your prospect may be confused or ill-informed about the mea

of common environmental terms.

• He may be distracted or in a hurry when he sees your message

• He is likely to make assumptions or jump to conclusions about

message, especially if it looks or sounds similar to other messag

he’s been exposed to.

Whenever you make a green claim for a product, the rst thing yo

should do is take off your marketer’s hat and think like a consumer

Keep in mind that consumers vary widely in their understanding

of environmental issues. Be aware of your target market’s levelof environmental interest and knowledge.4 Custom tailoring your 

messages is likely to improve response as well as assisting with

compliance. (See “Green Consumer Demographics” in Appendix

more information on green consumers.)

You may need to alter your approachdepending on the sophistic

of your target demographic. A simple approach is often best – 

especially one that both educates and entertains. (Remember th

simple isn’t synonymous with vague. Always communicate clearly

be sure to quantify and qualify!)

Above all, empathy means the willingness and ability to listen.Be

accessible. Give your customers ample opportunity to be heard.

Respond to them timely and with respect. It’s a great way to mak

them part of your team!

If you knew nothing about your com-

pany or your product, how would

you interpret the messaging sur-

rounding it? Is it believable? Confus-

ing? Does it encourage you to jump

to conclusions? Is there adequate

information to meet your needs?

Do you know where to go for more

information?

 4 For excellent insights on marketing green products to mainstream consumers, we h

 recommend following The Shelton Group’s blog, The Main stream (See Appendix D f

Case Study in Success through Transparency

How Icebreaker turned transparency into a powerful marketing device.

Icebreaker is a wool sportswear company based in New Zealand.

Each Icebreaker garment comes with a unique “baacode,” which

can be typed into a search bar on their website (there is a demo code

available in case you don’t have an Icebreaker garment.)

Doing so allows you to “visit” the farm and “meet” the farmers who

produced the wool. Information is also available about other parts

of their supply chain and about the company’s environmental and

animal welfare standards.

Due to this and other innovative approaches to sustainability and

marketing, Icebreaker has enjoyed tremendous success. Incorporated in

1994, the small New Zealand company has grown to be an international

brand, opening its ninth North American retail outlet in August of 2012.

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Third Party Certify.Nothing establishes transparency and credibility more thoroughly

earning third party approval from a recognized certifying organiz

It’s easy to nd opportunities for environmental certication. TheEcolabel Index, an eco-label directory, has identied over 400 suc

labels worldwide. There are various types and levels of eco labels

Some will be more appropriate than others for your needs; others

best left alone.

If you wish to pursue eco-labeling on behalf of your company, do

due diligence. Verify that the certifying organization is legitimate,

choose a label that is well-recognized and respected.

It’s important to remember that most eco-labels and seals are

considered endorsements. You will want to be sure you’re in

compliance with the FTC Endorsement Guides. The major points

remember are:

• You need to disclose any connecti on to the endorsing organi

that could affect credibility. For instance, if you are a dues-pa

member of a trade organization that issues certication, you’

want to make that relationship clear.

• Many seals or certications imply general environmental ben

which are frowned upon by the FTC. You’ll want to clearly

identify exactly which benets (biodegradability, sustainable

growing methods, etc.) the seal addresses. If the benets are

very comprehensive, it’s ok to direct consumers to a website

for more information, but don’t imply that your product has n

environmental impact.

• Also, certication doesn’t take the place of substantiati on. Yo

need to be able to provide solid scientic evidence to back y

environmental claims.

Please see Appendix C for more information on eco-labels, includ

an explanation of the four main types of eco-certication and a p

list of legitimate eco labels you might want to consider using.

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About the Author

Anne Michelsen is a freelance copywriter and

principal of Green Ink Copywriting. Anne helps

companies get sales and leads for their sustaina

products and services, while remaining complia

with green marketing regulations. Her extensive

experience in eco-friendly living, renewable

energy and green construction allows her to wri

insightfully about sustainability, while her on-time

guarantee helps take the hassle out of content

marketing for her clients. Anne’s articles have

appeared in a number of publications including

GreenBiz.com, Down to Business Magazine, and

Padosa.com.

To nd out more about how Green Ink Copywriting c

help you promote your company’s sustainable prod

and initiatives, or to inquire about Green Guides

compliance training, contact Anne today .

The Q.U.I.E.T. Advantage in

Compliance and Beyond“Speak softly and carry a big stick; you will go far.”

-Theodore Roosevelt

Quantify & qualify, Understanding sustainability, Integrity, Empathy,

and Third party certication. Together, these ve elements make up

the Q.U.I.E.T. method for greater transparency and green messaging

compliance.

Being Q.U.I.E.T. is a softer approach to marketing than you may be

used to, especially if you are a B2C marketer. It doesn’t allow for 

exaggeration, hype or twisting the truth. But like Roosevelt’s big stick,

what it does offer can be far more powerful in the long run.

Integrity and empathy can help you nurture and grow your customers’

trust. Trust and loyalty you can use to support your company’s

continued protability and growth.

When you quantify, qualify and certify you’re developing solid support

in the form of veriable data you can lean on to build credibility and

use to fend off accusations.

And deepening your understanding of sustainability helps you

strengthen your grasp on the logic behind the environmental guidelines

supplied by the FTC and other organizations. This enables you to quickly

and easily adapt your messaging to the ever-changing technological

and social climate surrounding environmental issues – without risking

your brand.

Put together, the Q.U.I.E.T. method is not just about compliance with

the FTC’s Green Guides and other environmental marketing regulations

 — it’s a formula for long term success.

See the Appendix section of this report for additional tools and suggestions for

improving and simplifying your FTC Green Guide compliance. Included is a

printable Q.U.I.E.T. reminder card, link to an interactive quiz to test your knowledge

of Green Guide compliance, a special section on Eco-Labels, and an extensive

list of additional resources.BuildingSustainable Connectionsto Your Customers

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Appendices

Appendix A:

Printable Q.U.I.E.T. Reminder Card

Appendix B:Interactive Quiz

Appendix C:More Information on Eco Labels

Appendix D:Additional Resources

Appendix A:

Printable Q.U.I.E.T. Reminder Card

Post the reminder card on the next page in your work space to h

you stay FTC compliant. You can download and print a copy he

http://www.thegreeninkwell.com/quiet/

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Q.U.I.E.T.The Q.U.I.E.T. Method for Transparency in Environmental Marketing

Q - Qualify and QuantifyAvoid vague statements and general claims.

U -  Understand Sustainability

Know how your product affects the environment as a whole;

this can help you avoid misleading statements or errors due

to ignorance.

I - Practice Integrity

Dene your position on sustainability and be sure your 

actions are consistent with it.

E - EmpathizeUnderstand and communicate with your customers and

stakeholders to prevent misunderstandings and defuse

animosity.

T - Third Party Certify

Certication helps you stay on track with your sustainability

goals and boost your credibility.

 ©2012 Green Ink Copywriting

GreenInkCopywriting.com

Appendix B:

Interactive Quiz

Test your FTC compliance knowledge! Click the link below to take

20-question Green Guide quiz.

Take the quiz! http://www.thegreeninkwell.com/ftc-green-guide

http://www.thegreeninkwell.com/quiet/

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Appendix C:

More Information on Eco Labels

Four Types of Eco Labels: Which Should You Use?Eco labels are a great way to give creditability to your company

and products. However some will be more suitable for your company

than others. Here we’ve identied four types of eco labels and their 

potential impact on your brand.

Proprietary green labeling

A few years ago, when “green” suddenly became popular, a number 

of companies developed their own environmental labeling systems.

Typically, companies develop internal green labels to assist in the

development of more sustainable products, and/or to help consumers

identify greener options within a company’s product line.

Unfortunately, internal labeling has pitfalls as well as benets (see

sidebar.) That’s because most consumers automatically assume that

the presence of a seal means the product or company has been

approved by an outside organization . Misleading? You bet.

To be honest, we’re on the fence about proprietary green labeling. Wecertainly don’t recommend doing it without making absolutely clear 

that it is your own internal system. You should also be sure that you

carefully dene which environmental benets your proprietary eco-

seal addresses (such as recycled content, or presence of VOC’s.) This

will make it less likely for it to be interpreted as a general environmental

benet claim, which would be a violation of FTC guidelines.

Eco labels from trade organizations

The next category includes certications awarded by trade

organizations. These carry some weight because they generally

require a company or product to meet certain denable sustainability

standards. However, the economic interest involved when a company

is a dues-paying member of the organization granting the seal may

compromise the seal’s integrity in the eyes of some consumers.

Lawsuit Targets Internal Green Label

A series of consumer-initiated lawsuits

was recently brought against S.C. John-son & Son, Inc. for putting green certi-

cation seals on package labels without

clarifying that the logo stood for the

company’s own rating system. The

consumers assumed the seal meant

that the product had been vetted

as eco-safe by an independent third

party organization. Their assumption

was judged valid in court. The take-

away point? Be very clear about the

exact meaning of any seal or symbol

you use.

“If the FTC follows up with enforcement

on certications and seals of approval,

there will be a shakeout in which the

bad operators go out of business andthe legitimate ones differentiate them-

selves and prosper. This clear roadmap

of what you should and should not do

could translate into a real opportunity.”

Thomas A. Cohn, attorney and former Director of 

the Federal Trade Commission’s Northeast Region

If trade certications are available in your industry, it’s not a bad

idea to participate. If nothing else, they can help dene sustaina

standards within the industry. If you do use them, though, be sure

adequately disclose your relationship to the certifying organizatio

ensure Green Guide compliance.

Vanity eco sealsOne general rule when dealing with eco seals is to avoid anythin

that’s too easy to get.

Unfortunately, the increased demand for green certication has

resulted in the proliferation of “vanity seals.” These ofcial-looking

green seals and labels are very easy to procure. They are sometim

available for nothing more than a sum of money. However they a

not backed by adequate data or enforcement.

Remember that the Green Guides require you to back up any cl

with good, solid data. Vanity seals have little or no real meaning.

makes them a clear violation of FTC policy. Use them at your own

Legitimate third party eco-certication

The cream of the eco label crop is the veried third party certica

from an organization well known and respected for its certifying

process.

Proper third-party eco-certication is not an easy process. If the

organization is legitimate, it will require your company to meet rig

sustainability standards. You will need to consider the costs involv

which can include the cost of record-keeping and changes to yo

production and operations. However, it will lend you a great amo

of credibility virtually unobtainable any other way.

It’s important to make sure any label you use is well-regulated, wi

clear standards and a transparent operation. It’s also a good ide

research your market before investing in certication. It won’t inc

your credibility if your target market doesn’t recognize and respo

the proposed label.

Appendix C: More Information on Eco

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Some respectable third-party eco labels include: 

• Green Seal (Greenseal.org)- general environmental seal for products

and services

• EcoLogo(EcoLogo.org) – general environmental seal for products

and services

• USDA Organic (U.S. Department of Agriculture)- organically

produced agricultural products

• Fair Trade Certified (Fair Trade USA)- fair trade

• Certified Humane (Humane Farm Animal Care)- animal welfare

• Forest Stewardship Council  – forest products

• Global Organic Textile Standard (GOTS)- organic certication for 

the textile industry

• Water Sense (U.S. Environmental Protection Agency)- water-efcient

products such as appliances

• Energy Star  (U.S. EPA and Department of Energy)- energy-efcient

products

• EPEAT (Green Electronics Council)- electronics

• Green-e (Center for Resource Solutions)- certication and verication

of renewable energy and greenhouse gas mitigation products

This list is not comprehensive, and may not include eco certication for your particular industry.

Additional eco-label resources: 

International Organization for Standardization (ISO) - ISO has

identied three types of eco labels under their 14000 series of

environmental standards:

• Type I is a multi-attribute label developed by a third party;

• Type II is a single-attribute label developed by the producer;

• Type III is an eco-label whose awarding is based on a full life-cycle

assessment.

Visit the ISO’s website for more information on ISO 14020 (eco-

labeling.) 

Global Ecolabelling Network - A non-prot association of Type-1

ecolabelling organizations as dened by the ISO 14024 standard.

Appendix C: More Information on Eco Labels

Appendix D:

Additional Resources

Federal Trade Commission Publications

Current (2012) Green Guides

Summary of the Green Guides The “Cliff’s Notes” version; very

handy!

Green Guides Proposed Revisions (2010) This document include

a considerable amount of commentary submitted during the

formulation of the current guides. We can’t guarantee that it w

remain available; should the FTC remove it from their website co

us at info@greeninkcopywriting.com to request a copy.

FTC Legal Actions: Environmental Marketing Links to case high

of recent FTC environmental action; reports and workshops off

by the FTC on environmental topics; laws, rules and guides spe

to environmental topics; and compliance documents, includi

warning letters.

Endorsement Guides Green seals and logos are technically

endorsements. If you use them you should f amiliarize yourself this document.

FTC Policy Statement on Deception

Federal Trade Commission Act, Section 5: Unfair or Deceptive

or Practices.

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Other Environmental Marketing Enforcement Regulationsand Guidelines (state and international)

International: International Organization for Standardization (ISO):

The ISO 14000 guidelines address sustainability in business, including

marketing guidelines.

Australia:  Green Marketing and the Australian Consumer Law

Canada: Environmental Claims: A Guide for Industry and Advertisers 

(Canadian Standards Association)

Individual states: Some states, including California, Indiana, Minnesota

and Rhode Island have incorporated green marketing regulations into

their commerce law. This appears to be a growing trend, so keep an

eye on your state’s regulations. Fortunately, most states seem to be

using the Green Guides as a model, so as long as you’re compliant

with the FTC you’re unlikely to run into trouble. If you’re unsure, though,

it wouldn’t hurt to double check or to consult a attorney familiar with

advertising law.

Green marketing information

Government Websites

Bureau of Consumer Protection environmental marketing

information

Small Business Administration green marketing information

Green Marketing Books

Grant, John, The Green Marketing Manifesto

Horowitz, Shel & Jay Conrad Levinson, Guerilla Marketing Goes Green 

Ottman, Jacqueline, Green Marketing: Opportunity for Innovation

Ottman, Jacqueline, The New Rules of Green Marketing

Green Marketing Blogs

Frugal Marketing: Written primarily for small business and startups,

but offers an extensive archive of excellent articles on sustainable 

business.

GreenBiz.com: The premier green business news site.

GreenMarketing.TV: Green Marketing TV covers the art of

green and social entrepreneurship, through insightful articles on

successful businesses, interviews with visionary entrepreneurs,

down-to-earth marketing tips, hands on tutorials, and more.

Appendix D: Additional Resources

The Mainstream – Insights on selling sustainability to mainstre

consumers from marketing agency The Shelton Group. Highly

recommended.

Sustainability Information

(Special thanks to members of LinkedIn’s Chief Sustainability Ofc

Network group for many of these suggested titles.)

Books

Anderson, Ray, Business Lessons from a Radical Industrialist

Boyd, Doug, Rolling Thunder 

Carson, Rachel, Silent Spring 

Dunn, Steven and Richard Young, The Green Baron: A Business Parable on E

Friend, Gil, The Truth About Green Business,

Fuller, Buckminster, Critical Path

Fuller, Buckminster, Operating Manual for Spaceship Earth

Hawkin, Paul, The Ecology of Commerce

Hawken, Paul, Natural Capitalism: Creating the Next Industrial Revolution

Iannuzzi, Al, Greener Products: The Making and Marketing of Sustainable Bra

Nattrass, Brian, et.al., The Natural Step for Business

Neihardt, John G., Black Elk Speaks

Senge, Peter, et. al., The Necessary Revolution

Sitarz, Daniel, Greening Your Business

Hutchins, Giles, The Nature of Business

Videos

Earthsayers.comIndigenous Voices Speaker Series

Call of Life: Through interviews with leading scientists, psycholo

anthropologists, philosophers, and indigenous and religious lea

the lm looks beyond the immediate causes of the crisis to co

how our cultural and economic systems, along with deep-sea

psychological and behavioral patterns, have allowed this situ

to develop, continue to reinforce it, and even determine our 

response to it.

Appendix D: Additional Re

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Websites and Blogs

Biominicry for Creative Innovation (BCI): A network of creative

innovators, professional change agents, biologists and design

professionals who work in creative collaboration with each other to

apply ecological thinking for radical transformation. At the heart of

BCI’s work is a shared passion for creating brilliant, resilient, values-led human systems that are aligned with nature’s ecosystems

(business inspired by nature.)

Earthsayers.tv – Video interviews with and about sustainability

advocates. Especially notable are the viewpoints of indigenous

peoples.

Green America (formerly Co-Op America) - A not-for-prot

membership organization whose mission is to harness economic

power—the strength of consumers, investors, businesses, and

the marketplace—to create a socially just and environmentally

sustainable society. Offers green business certication.

International Institute for Sustainable Development: “This site

explains the strategies and tools that companies can use to

translate an aspiration for sustainability into practical, effective

solutions. Case studies from around the world are provided.”

The Nature of Business – This blog explores how we can help

ensure our organizations become rms of the future by redesigningfor resilience. It explores how the answers to many of our pressing

business challenges lie all around us in nature.

The Natural Step: A non-prot environmental education

organization working to build an ecologically and economically

sustainable society.

Security and Sustainability Forum: A forum for industry,

government, academics and others interested in the

environmental impacts that threaten national security. Offers

webinars, videos and other educational opportunities. Check out

their Archive tab for a series of excellent recorded webinars and

audio interviews on a variety of sustainability topics.

Sustainable Brands: A global learning, collaboration, and

commerce community of forward-thinking sustainability, business

and brand strategy, and innovation professionals who are leading

the way to a better future.

Appendix D: Additional Resources

Sustainable Business Institute – A nonprot whose mission is to

benet the public by encouraging business leaders to adopt

communicate sustainable business practices.

SustainabilityAdvantage.com: Resources for Sustainability

Champions from speaker and author Bob Willard

World Business Council for Sustainable Development - a CEO

led organization of forward-thinking companies that galvani

the global business community to create a sustainable future

business, society and the environment.

Green Consumer Demographics

The International Institute for Sustainable Development’s “Wh

the Green Consumers?” page offers some good insights on

consumers.

The GfK Roper Consulting Green Gauge Report U.S. is the on

nationwide, long-term syndicated study of consumer attitude

and behaviors towards the environment. GfK Roper also offe

global Green Gauge report.

The National Marketing Institute has been tracking environm

consumerism since the 1990’s. Their LOHAS (Lifestyles of Heal

and Sustainability) Consumer Trends Database covers ftee

market sectors and includes a proprietary method for greenconsumer segmentation, which you can read about here.

Research and consulting rm The Hartman Group provides a

number of reports tracking consumer trends on various topic

including Sustainability, Health & Wellness, and Organic & Na

The Shelton Group’s annual EcoPulse survey identies import

trends regarding marketing sustainable products and service

consumers. A free preview is available.

Appendix D: Additional Re

 ©2012 Green Ink Copywriting. All rights reserved. Distribution of this unmodied report is encouraged. Th

author respectfully requests that any references to this report be accompanied by a link to http://green

copywriting.com. Please submit inquiries to info@greeninkcopywriting.com

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