The movement towards environmental marketing continues to build. Environmental marketing includes green labels and eco branding that focus on the sustainability or reduced environmental impact of a company’s products. Such advertising is important because it helps both companies and consumers move towards achieving reduced environmental impacts.
Many companies commonly use words such as “environmentally friendly,” “ecofriendly,” “recyclable,” “low energy,” and “recycled.” Studies show that consumers gravitate towards companies who are taking an environmentally friendly stance in product design and implementation. However, there can be a disconnect between what companies think their green claims mean and what consumers understand from those same green claims. That disconnect can trigger liability. Companies need to be very aware of the risks associated with “greenwashing”—implementing marketing claims that lack factual support. The Federal Trade Commission’s “Green Guides” can help companies avoid these risks.