1/7/2013

Green Guides = Your Guide (for Environmental Marketing and Product Responsibility)

By Tonia Ho, MAS

Agenda

• What is Green? • What are the FTC Green Guides? • What are the revisions and updates? • How do they protect you and your clients?

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What is Green?

What is the claim for green? How is it perceived by the consumer? What does it mean? Is it specific?

Source: holcombe‐cottages.co.uk

There is no clear answer, thus the FTC stepped in…..

Green Guides Basics –Consumer Perception

• Tell the truth. How do consumers understand claims? (covered under Sec. 5 FTC ACT)

• Have substantiation for all express and implied claims, as marketers are responsible for both that may lack clear and specific information.

Source: Julia Wright, MAS

Green Guides Basics ‐ Protect the Consumer

Objective to ensure truth in advertising • Consumer reach: – business to consumer – business to business • Applies to ALL forms of marketing claims – Packaging and labeling – Advertising – Promotional materials – In any medium (broadcast, POP, online, etc.) The guides are NOT to offer performance standards or ecolabels.

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General Environmental Benefit Claims

• CONSUMER PERCEPTION CONTROLS: Marketers should not make broad, unqualified general environmental benefit claims. They are difficult, if not impossible, to substantiate.

• BE SPECIFIC: Qualifications should be clear, prominent and specific. Marketers should qualify the general claims with specific environmental benefits to minimize consumer deception.

– OVERSTATEMENT OF ATTRIBUTES ‐ Small or unimportant benefits should not be highlighted as consumers interpret benefits to be significant.

– NO NEGATIVE IMPACT?? ‐ If the benefit is a result of a specific attribute, marketers should also analyze the tradeoffs resulting from the attribute to prove the claim.

What claim is being made?

Environmental Claims

Updated and new sections include the following:

• Certifications and seals of approval • Non‐toxic • Carbon offsets • Degradable • Made with renewable energy claims • Compostable • Made with renewable materials claims • Recyclable • Ozone safe and Ozone friendly • Recycled content • Source reduction • Refillable • Free‐of claims

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Certifications and Seals of Approval

Certifications and seals may be endorsements according to the FTC Endorsement Guides:

• Marketers should disclose any material connections to the certifying organization, which can affect the credibility of the endorsement. • Seals must clearly convey the basis for certification, as the seals are also likely to convey the general environmental bbfenefits. • If not, the seals should identify, clearly and prominently, specific environmental benefits (otherwise risk implied claims). • Third‐party certification does not eliminate a marketer’s obligation to have substantiation for all conveyed claims.

Trans‐Mate is proud to offer a line of earth‐friendly Envrio‐ Mate products by Trans‐Mate are formulated with environmentally‐friendly ingredients that provide superior performance at an affordable price.

Certifications and Seals of Approval

• According to www.ecolabelindex.com – there are currently 432 ecolabels in 197countries.

• 4 Ecolabels in the US and 16 in Canada ildiincluding: LiLeaping Bunny, Non‐GMO (Canada), USDA and Canada Organic, Energy Star/Energy efficient.

Our Industry Certifications

USDA Organic: Organic is a labeling term that indicates that the or other agricultural product has been produced through approved methods that integrate cultural, biological, and mechanical practices that foster of resources, promote ecological balance, and conserve biodiversity. Synthetic fertilizers, sewage sludge, irradiation, and genetic engineering may not be used. QCA: Quality Certification Alliance is an independent, accreditation organization whose mission is to elevate the standards by which industry firms that import and/or manufacture promotional products provide consistently safe, high‐quality, socially compliant and environmentally conscientious merchandise. FSC: Forest Stewardship Council (FSC) certification is a voluntary, market‐based tool that supports responsible forest management worldwide. FSC certified forest products are verified from the forest of origin through the supply chain. The FSC label ensures that the forest products used are from resppyonsibly harvested and verified sources. SFI: The Sustainable Forestry Initiative (SFI) 2010‐2014 Standard promotes sustainable forest management in North America through 14 core principles that promote sustainable forest management, including measures to protect water quality, biodiversity, wildlife habitat, species at risk, and Forests with Exceptional Conservation Value. GOTS: The Global Organic Textile Standard (GOTS) is the worldwide leading textile processing standard for organic fibers, including ecological and social criteria, backed up by independent certification of the entire textile supply chain. SEARCH THESE IN SAGE!

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Certifications in Sage

Dropdown box listing different standards – TSA, CPSIA, GOTS, etc.

Caution not verified!

QCA

Carbon Offsets and Renewable Energy

Marketers should employ competent and reliable scientific and accounting methods to properly quantify claimed emission reductions and to ensure that they do not sell the same reduction more than one time.

It is deceptive to misrepresent that a carbon offset represents emission reductions that have already occurred or will occur in the immediate future. To avoid deception, marketers should clearly and prominently disclose if the carbon offset represents emission reductions that will not occur for at least two years.

It is deceptive to claim that a carbon offset represents an emission reduction if the reduction, or the activity that caused the reduction, was required by law.

Carbon Offsets and Renewable Energy

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Carbon Offsets and Renewable Energy

Carbon offset and carbon footprint calculators exist for the following: ‐ Air travel ‐ Shipping (i.e. EPA Smartway Shipper Program) ‐ CarbonFund.org

Made with Renewable Energy

• Marketers must purchase RECs (Renewable Energy Certificates) to match energy use from fossil fuels for unqualified energy claims. • They should specify the source of renewable energy clearly and prominently (i.e. wind or solar energy) to minimize consumer risk of misunderstanding. • “Made with renewable energy claim” may be used only if all, or virtually all, the significant manufacturing processes involved are powered with renewable energy or non‐renewable energy matched by RECs. • Marketers who generate renewable energy AND sell RECs for what they generate should not claim they “use” renewable energy.

Promote renewable energy and empower people's hearts and minds with positive messages that show This retractable ballpoint pen has a shiny you're doing your part to help our planet's future. Our surface, available in transparent or opaque exclusive scale model Hybrid e.Turbine Fans generate a plastics. Equipped with refill 774. Green cool breeze and draw attention to get noticed. Solar certified through EMAS (EU ecological audit model requires sunshine or equivalent to power a small regulation) and ISO 14001. Produced with motor that spins the turbine's blades. Popular Hybrid 100% renewable energies and PVC free. e.Turbines perfectly connect energy conservation with your promotions in the coolest way!

Made with Renewable Materials

• Renewable material unqualified claims may imply that a product is recyclable, made with recycled content, or biodegradable. • They should specify the source of renewable material clearly and prominently and explain why it is renewable to minimize consumer risk of misunderstanding. • Marketers should also qualify any “made with renewable materials” claim unless the product or package (excluding minor, incidental components) is made entirely with renewable materials.

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Source Reduction

Marketers should qualify a claim that a product or package is lower in weight, volume, or toxicity clearly and prominently to avoid deception about the amount of reduction and the basis for comparison.

For example: “product generates 10% less waste” vs. the claim “product generates 10% less waste than our previous product.”

Free‐Of Claims

Marketers can make a free‐of claim for a product that contains some amount of a substance if: ‐ Product doesn’t have more than trace amounts or background levels of the substance ‐ Amount of substance present doesn’t cause harm associated with the substance ‐ Substance wasn’t added intentionally to the product

The free‐of claim would be deceptive if replaced with another substance that poses a similar environmental risk.

It may be deceptive to claim a product is “free‐of” a substance if it never was associated with that prodtduct category to bbiegin with.

Approximately 4500 products resulted in a BPA‐Free search in SAGE while 6700 products resulted in a search for lead‐free.

16 oz double wall insulated acrylic tumbler with straw. The double wall insulation in this tumbler is perfect for keeping your beverages hot or cold without impacting your grip. Includes a 9" straw with stopper so it won't fall out of the cup. Hand wash only, do not microwave. BPA and lead free, Prop 65 compliant. Measures: 4" x 6". They look disposable, but they are in fact reusable and incredibly stylish.

Free‐Of Claims

One Example from the FTC:

A package of t‐shirts is labeled “Shirts made with a chlorine‐free bleaching process.” The shirts, however, are bleached with a process that releases a reduced, but still significant, amount of the same harmful byproducts associated with chlorine bleaching. The claim overstates the product’s benefits because reasonable consumers likely would interpret it to mean that the product’s manufacture does not cause any of the environmental risks posed by chlorine bleaching. A substantiated claim, however, that the shirts were “bleached with a process that releases 50% less of the harmful byproducts associated with chlorine bleaching” would not be deceptive.

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Free‐of/Non‐Toxic

Non‐Toxic: Non‐toxic products need competent and reliable scientific evidence that the product is safe for both people and the environment.

Make a lasting impression with temporary tattoos. 100% Unconditional Sharpie Accent Mini Permanent Satisfaction & Lowest Price Marker ‐ Ink color matches trim color. Guarantees. Fastest AP Certified non‐toxic ink. Packaged turnaround time. Safe & bulk. non‐toxic. Made in the USA.

Degradable

• Advise marketers not to make an unqualified degradable claim for a solid waste product unless they can prove that the entire product or package will completely break down and return to nature within one year or less after customary disposal.

• Items destined for landfills, incinerators, or recycling facilities will not degrade within a year, so marketers should not make unqualified degradable claims for these items.

Industry Example:

“Made using revolutionary material. Reusable, 100% Recyclable, degradable, and uses 50% less non‐renewable resources.”

1 –Does your locale offer recycling of non‐rigid plastics? 2 –Does it meet the FTC definition of “degradable”? 3 – 50% less non‐renewable resources compared to what?

Compostable

• Marketers claiming that an item is compostable should have competent and reliable scientific evidence that all the materials in the item will break down into, or become part of, usable compost safely (e.g., soil‐conditioning material, mulch) and in approximately the same time as the materials with which it is composted.

• Marketers should qualify claims pertaining to where a product can be composted if facilities are not available to majority of consumers, or if cannot be composted timely and safey at home.

These biodegradable paper cups are lined with PLA; a resin made entirely from plants. They are eco‐friendly & 100% compostable in municipal & commercial composting facilities. Custom printed biodegradable cups are printed on blank white cups with the ecotainer logo at bottom. Flat tear black lids or dome sip lids available in black or white.

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Recycled Content

• Marketers make recycled content claims for materials only that have been recovered or diverted from the waste stream during manufacturing or after consumer use. • Marketers should qualify claims for products or packages made partly from recycled material, i.e. “Made from 30% recycled material.” • Marketers whose products contain used, reconditioned, or re‐manufactured components should qualify their recycled content claims clearly and prominently to avoid deception.

FSC Certified round pencil: The FSC promotes Really??? responsible management of the world's forests. This is accomplished through development of Made with 50% voluntary, internationally recognized forest recycled plastic. management standards. FSC is the most widely Durable plastic recognized global certification program. The FSC barrel, splinter free. certification program supports biodiversity, Synthetic resin and protection and conservation of forests, ensures wood‐free. long term timber supplies, protects stream sizes, Supplier indicates while assuring consideration of long term human that this is a benefits. “Recyclable” product on SAGE.

Recycled Content

FTC Example: A package is labeled “Includes some recyclable material.” The package is composed of four layers of different materials, bonded together. One of the layers is made from recyclable material, but the others are not. While programs for recycling the 25 percent of the package that consists of recyclable material are available to a substantial majority of consumers, only a few of those programs have the capability to separate the recyclable layer from the non‐recyclable layers.

The claim is deceptive for two reasons. First, it does not specify the portion of the product that is recyclable. Second, it does not disclose the limited availability of facilities that can process multilayer products or materials. An appropriately qualified claim would be “25 percent of the material in this package is recyclable in the few communities that can process multi‐layer products.”

Industry Example

“Made with 50% recycled plastic. Durable plastic barrel, splinter free. Synthetic resin and wood‐free.”

Supplier indicates that this is a “Recyclable” product on SAGE.

Recyclable and Refillable

• Marketers should qualify recyclable claims when recycling facilities are not available to at least 60% of the consumers or communities where a product is sold.

• Lower level of access to the facilities, the more emphasis should be made on the limited availability of recycling for the product.

• Refillable: marketers must provide a way to refill the package in order to make unqualified refillable claims, iie.e. provide a system to collect and refill the package or sell product consumers can use to refill the original package.

The EPA estimates that 75% of solid trash is recyclable, but only about 30% actually ends up being recycled.

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The 7 Sins of GreenWashing

1. Sin of the Hidden Trade‐off: committed by suggesting a product is “green” based on an unreasonably narrow set of attributes without attention to other important environmental issues. Paper, for example, is not necessarily environmentally‐preferable just because it comes from a sustainably‐harvested forest. Other important environmental issues in the paper‐making process, including energy, greenhouse gas emissions, and water and air pollution, may be equally or more significant.

2. Sin of No Proof: committed by an environmental claim that cannot be substantiated by easily accessible supporting information or by a reliable third‐party certification. Common examples are tissue products that claim various percentages of post‐consumer recycled content without providing any evidence.

3. Sin of Vagueness : committed by every claim that is so poorly defined or broad that its real meaning is likely to be misunderstood by the consumer. “All‐natural” is an example. Arsenic, uranium, mercury, and formaldehyde are all naturally occurring, and poisonous. “All natural” isn’t necessarily “green”.

The 7 Sins of GreenWashing 4. Sin of Irrelevance: committed by making an environmental claim that may be truthful but is unimportant or unhelpful for consumers seeking environmentally preferable products. “CFC‐ free” is a common example, since it is a frequent claim despite the fact that CFCs are banned by law.

5. Sin of Lesser of Two Evils: committed by claims that may be true within the product category, but that risk distracting the consumer from the greater environmental impacts of the category as a whole. Organic cigarettes might be an example of this category, as might be fuel‐efficient sport‐utility vehicles.

6. Sin of Fibbing: the least frequent Sin, is committed by making environmental claims that are simply false. The most common examples were products falsely claiming to be Energy Star certified or registered.

7. Sin of Worshiping False Labels: The Sin of Worshiping False Labels is committed by a product that, through either words or images, gives the impression of third‐party endorsement where no such endorsement actually exists; fake labels, in other words.

Who is buying green products?

• Lifestyles of Health and (LOHAS) describes an estimated $290 billion U.S. marketplace for goods and services focused on health, the environment, social justice, personal development and . • The consumers attracted to this market represent approximately 13‐19% percent of U.S. adults. • Research shows that one in four adult Americans is part of this group— nearly 41 million people.

Market Segments for LOHAS include:

• Green building ‐ $100 billion • Personal health‐ $117 billion • Eco tourism – $42 billion • Alternative transportation ‐ $20 billion Source: LOHAS.com

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Additional Thoughts

Suppliers can help by: Give clear and accurate product descriptions. Keep adding more “green” products to your lines! Certification is key. Compliance needs to be thoroughly communicated.

Distributors can help by determining: What is the client trying to accomplish? What type of clients are you trying to target? Wha t is the btbest way to solve the ir problem /nee d? What demographic info do you have access to? What are the client’s values? (ie‐ water conservation) Look at the options: What is the product made of? Where did it come from (import or domestic) Durability! Disposal –recycle, compost, landfill? Is there an alternative? How is it packaged?

Questions?

Additional Sources

• Sources: • http://www.ftc.gov/green • http://www.ftc.gov/opa/2012/10/greenguides.shtm • http://www.ftc.gov/os/2012/10/greenguides.pdf • http://www.ftc.gov/os/2012/10/greenguidessummary.pdf • http://business.ftc.gov/advertising‐and‐marketing/environmental‐marketing

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Resin Codes

Source: http://www.leedsworld.com/downloads/Plastic_Guide_NSM.pdf

Resin Codes

Source: http://www.leedsworld.com/downloads/Plastic_Guide_NSM.pdf

Resin Codes

Source: http://www.leedsworld.com/downloads/Plastic_Guide_NSM.pdf

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