Being “green” is more than a buzzword. Sustainability and environmentally friendly practices are a priority for consumers and businesses alike. Eco-friendly packaging and commitments to carbon-neutral practices are just a few ways that sustainability has become a selling point for brands. But with the rise of green marketing, the temptation to exaggerate claims or engage in greenwashing has grown too.
What is Greenwashing?
Greenwashing occurs when businesses leverage dishonest marketing strategies to seem more environmentally responsible than they truly are. Sometimes, the exaggerations are subtle, like vague language or pretty green logos that resemble what an eco-friendly brand might look like. Other times, it’s outright false claims, such as stating that products are 100% sustainable when they’re not.
Greenwashing may include packaging claims like “biodegradable” without verifiable evidence, inflated benefits of eco-friendly initiatives that don’t make a real impact, or selective transparency—where a business highlights one sustainable aspect while ignoring other harmful practices in its operations.
The Legal Consequences of Greenwashing
Consumers are becoming increasingly skeptical, and as a result, legal action is on the rise.
Consumer Protection Action
Federal agencies like the Federal Trade Commission (FTC) are taking steps to prevent false advertising and deceptive marketing around environmental products. The FTC’s Green Guides offer businesses clear guidance on how to market their products honestly and avoid misleading consumers. If a company’s advertising is found to violate these guidelines, the FTC can require corrective action.
Class-Action Lawsuits
Misled consumers can take legal action, resulting in costly class-action lawsuits. Undisclosed influencer marketing has caused many prominent brands to face legal cases, such as the recent $50M class-action lawsuit against Revolve, where paid advertisements with influencers were masked as organic content. This is a reminder of the importance of compliance in every aspect, especially with regard to promoting your business or brand on social media and collaborating with influencers.
Reputation Fallout
Even without lawsuits, exposure of greenwashing can lead to boycotts, lost customer trust, and bad press, costing brands far more than any short-term revenue.
How to Avoid Greenwashing
To protect your business and build lasting trust with consumers, sustainability claims must always be truthful, backed by evidence, and clearly communicated.
Be Transparent
Provide detailed, honest information about your environmental practices and goals. If your product uses recycled materials, confirm the amount. If your supply chain offsets emissions, explain how. Vagueness raises red flags. For instance, instead of saying, “Made with recycled content,” specify, “Made with 50% recycled plastic from post-consumer waste.”
Keep documentation, third-party certifications, and audit results on hand, as any sustainability claims you make must be verified. These won’t just protect you legally; they’ll also make your claims more credible. Avoid technical jargon or confusing terms that leave consumers guessing. Words like “eco-friendly” or “natural” should come with context.
Avoid Overstating Efforts
While progress in sustainability is positive, don’t exaggerate. State exactly what you’re achieving and acknowledge areas for improvement. Progress that feels authentic is more valuable than perfection that feels fake.
Staying Compliant
Greenwashing isn’t always intentional; it can arise from poorly informed employees making bold claims. Educate your entire team, from marketing to sales, on what is and isn’t acceptable under environmental advertising laws.
Laws around sustainability claims are constantly evolving. Commit to staying informed about updates in your industry, and adjust your messaging as new compliance standards emerge. Collaborate with consultants, industry experts, and legal counsel to ensure your marketing aligns with compliance standards.
The Future of Green Marketing
For every business promoting sustainability: Keep it real. Green marketing is an opportunity to inspire consumers and drive change, but exaggeration does more harm than good. Transparency, providing evidence, and respecting both the consumer and the environment, mean you meet legal expectations and win in the long term. Sustainability is a commitment, and following through builds trust that no shortcut can replicate.
Thinking of highlighting your environmental efforts? Start with honesty and compliance, and you’ll stand out for all the right reasons. If you have questions about your business practices and compliance, Bill Barrett and the Corporate Law Team at Mandelbaum Barrett PC are here to help.