Guidance On Renewable Materials Renewable Energy Claims

The Federal Trade Commission (FTC) has proposed revisions to the guidance for marketers to help them avoid making misleading environmental claims. The proposed changes are designed to update the Guides and make them easier for companies to understand and use. The changes to the “Green Guides” include new guidance on marketers’ use of product certifications and seals of approval, “renewable energy” claims, “renewable materials” claims, and “carbon offset” claims. FTC will accept public comments on the proposed changes until December 10, 2010.

The proposed changes would update the Guides by giving advice about claims that are not addressed in the current Guides, such as claims about the use of “renewable materials” and “renewable energy.” The FTC’s consumer perception research suggests that consumers could be misled by these claims because they interpret them differently than marketers intend. Because of this, the Guides advise marketers to provide specific information about the materials and energy used. Moreover, marketers should not make unqualified renewable energy claims if the power used to manufacture any part of the product was derived from fossil fuels.

The proposed revised Guides also provide new advice about carbon offset claims. Carbon offsets fund projects that reduce greenhouse gas emissions in one place in order to counterbalance or “offset” emissions that occur elsewhere. The Guides advise marketers to disclose if the emission reductions that are being offset by a consumer’s purchase will not occur within two years. They also advise marketers to avoid advertising an offset if the activity that produces the offset is already required by law.

Caltha LLP provides expert environmental consultant services in Nebraska to obtain air and wastewater permits, evaluate regulatory requirements, and to develop cost effective compliance programs.

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