The Regulation of Green Marketing

Abstract

In 1990, the National Association of Attorneys General (NAAG, 1990) drew a parallel between the extensive use of health and nutrition claims during the 1980s and the escalating use of environmental claims (what has come to be known as marketing) during the 1990s. While clear potential benefits from the use of such claims in the area of consumer education have been noted (Ippolito and Mathios, 1989; Levy and Stokes, 1987), the NAAG, based on its experience with nutrition claims, is also concerned about potential confusion and harm that may result from the unrestrained use of claims. The NAAG recommended that the Federal Trade Commission (FTC) and the Environmental Pro tection Agency (EPA) work jointly with the states to develop national standards for environmental marketing claims. In July 1992, the FTC responded by issuing an initial set of guidelines developed in close cooperation with the EPA and the U.S. Office of Consumer Affairs. The guidelines are not legally enforceable and deal primarily with a limited number of environmental terms such as recyclable, degradable and environmentally friendly used in the advertising and labeling of a variety of products. Nonetheless, the guidelines are an attempt to provide federal guidance to marketers wishing to make environmental claims. The FTC plans to seek com ments on how the guidelines are working after they have been in place for three years. The recent FTC guidelines will most certainly stimulate debate over the appropriate role of federal agencies in regulating green