The FTC vs Green Marketing– Who Will Win?

Marketing & Sales — By Mark Wanczak on July 27, 2009 at 3:34 pm

The Federal Trade commission, responsible for keeping tabs on all those claims we see on product labels, announced last month that it is stepping up efforts to monitor the rash of green products flooding the marketplace. It’s no surprise that consumers are confused by the certifications, promises and flat-out greenwashing and now the FTC is attempting to come to our rescue.

Or are they?

Perhaps consumers should be pleased with the FTC for focusing on the wild west that is green messaging, but we should take their efforts with a grain of salt. As this USA Today article points out, only three companies making false environmental claims have been cited by the FTC (for disputes over claims of having biodegrabale products) in the past nine years. With all the examples of greenwashing and a Web site that essentially does the FTC’s job, it’s difficult to imagine why more companies aren’t being cited.

But could the FTC’s ineffectiveness have a silver lining? For more on how the overwhelming vagueness in green messaging may turn into a positive for consumers, take a walk down any isle in your grocery store.

The problem with food marketing (as Michael Pollan points out) is that all food product labels promote the nutrients in their products, and not the product itself. We see ‘low-fat,’ ‘whole grain,’ and ‘rich in Omega-3′ over and over again, yet we’re not really sure why, or if, these claims are good for us. Food has become engineered to include just about any nutrient or vitamin a scientist or corporation wishes. This has led to marketplace not unlike the current green marketplace, where confusion trumps clarity.

So how have food consumers adapted to become more nutrition savvy? We’ve done our own research. As a result, organic foods have exploded in popularity. People are finally becoming aware of high fructose corn syrup’s many evils. Essentially, we’re not relying on the labels and promises that are either going unchecked or serve to cover up hidden dangers.

This active participation is what green marketing will come to see in the future. If the FTC can’t keep up, then the mainstream public will have to fend for itself. Eventually, consumers will tire of the green confusion and take on the claims themselves. We rely on labels to save us the time and energy of research, but when the promises on the outside of the product fail us, we have no choice but to roll up our sleeves and figure things out on our own.

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  • jamesbedell
    Great Post! I think what we're starting to see are two breeds of consumer. One is the is iPhone/Blackberry carrying type checking out products with an app like Good Guide an obsessively reading labels. The second group doesn't actively seek information and therefore relies on TFC to dole out better/smarter ratings for products. It's important for the 1st group to always be the pace-setter, but it's equally important that the second group doesn't get left behind.
  • Mark Rabkin
    Mark - consider the flip side when there is a lack of educational material for a newly built or remodeled energy efficient, resource conscious, air quality and indoor environment masterpiece. The Metzenbaum Federal Courthouse in Cleveland (http://www.cbe.berkeley.edu/li... is a fantastic example of the GSA investing over $50 million and the tenants that I spoke with a few months ago had no idea the lengths the design and construction team went to in an effort to preserve the historic beauty while balancing environmental responsibility throughout the process.
  • Good point, Mark. Many LEED buildings also make it a point to educate visitors beyond what the plaque notes. You often see signage in the entrances or lobbies pointing out the systems and improvements used to obtain the certification. I'm a big fan of these public educational call-outs.
  • Mark Rabkin
    It should be noted that the USGBC utilizes the "food label" metaphor when marketing certification plaques. "Just like when you go to the store and can see the ingredients list and nutrition information on a package of food, the plaque from USGBC identifies the ingredients, means and methods of the building you are standing in."
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