Green Marketing without Greenwashing

Written By Victoria Wiley

“Greenwashing” is more than just a buzzword that’s caught on in recent years.

As consumers become increasingly interested in environmentally friendly products, companies have turned to “green” marketing to highlight the environmental benefits of their goods.

Green marketing offers companies a meaningful way to reach conscious consumers, who are often willing to pay a premium for environmentally friendly products. Packaging, ads, and company statements all present opportunities to reach these consumers.

In an effort to appeal to ethical consumers, companies often overstate their environmental commitments or fail to substantiate claims about the benefits of their products. But responsible consumers and savvy regulators are taking action, and it’s costing businesses big time.

If you’re a brand offering conscious or sustainable products like eco-friendly cleaners or cruelty-free cosmetics, or a business making statements about its carbon targets and sustainability commitments, read on to learn what you can do to market ethically and legally.

What is greenwashing?

Greenwashing occurs when companies mislead consumers, intentionally or inadvertently, about the environmental benefits of their products or practices. Making misleading or unverifiable claims erodes trust and may violate consumer protection laws.

The concept of greenwashing has also been expanded to encompass “humanewashing,” or companies’ efforts to portray their animal welfare practices as more compassionate than they are in reality. Like greenwashing, humanewashing can put companies at risk for reputational harm, false advertising penalties, and consumer protection litigation.

What’s at stake?

Greenwashing exposes businesses to serious, costly risks:

  • Reputational risk: One misleading claim can cost a company customer trust and damage a brand’s credibility.

  • Regulatory risk: The Federal Trade Commission (FTC) and other agencies are increasingly investigating environmental marketing claims.

  • Litigation risk: Greenwashing allegations are grounds for lawsuits, especially in states like California, New York, and Massachusetts with strong consumer protection laws.

Who’s at risk?

Over the years, massive corporations’ misleading sustainability claims have made headlines, such as Volkswagen’s emissions scandal or the $1.5 million fine Keurig paid for overstating how recyclable its coffee pods were.

But smaller brands with a reputation for sustainability are not immune from consumer protection groups and regulatory review. In 2023, for example, a consumer watchdog filed complaints with the FTC and several state attorneys general against Tom’s of Maine for allegedly making misleading recyclability claims.

While the smallest brands may not be first in the line of sight for regulators, they are still required to comply with advertising laws. For these brands, consumer trust is critical: one marketing misstep can damage trust and cost them their consumer base.

Marketing & Advertising Laws

In the United States, marketing and advertising practices are governed by a patchwork of state and federal advertising laws, consumer protection regimes, and agency guidance.

At the heart of these laws is a simple principle: don’t mislead consumers.

The FTC’s Green Guides set out guidance on how companies can make environmental claims without deceiving consumers.

Red Flags in Green Marketing

Certain buzzwords may sound appealing on packaging and in marketing campaigns, but they carry significant legal and ethical risks for greenwashing. This risk generally arises when claims are difficult to substantiate with data or terms do not have precise definitions. Claims that are vague or difficult to verify are more likely to mislead consumers.

As a result, words like the following may be subject to greater scrutiny by regulators, competitors, and consumer advocates:

  • Eco-friendly

  • All natural

  • Green

  • Sustainable

  • Clean

  • Non-toxic

  • Chemical-free

  • Better for the planet

  • Planet-safe

  • Biodegradable

  • Conscious

  • Cruelty-free

  • Not tested on animals

Green Marketing is Possible

The risks associated with greenwashing are serious, but they should not stop you from highlighting the good you do.

With care and support from a lawyer well-versed in green marketing, sustainable branding is possible and you can confidently showcase how your business and products make the world a better place.

Let’s Protect Your Brand

Need help navigating green marketing laws or avoiding greenwashing pitfalls? Reach out today and let’s chat. I offer compliance reviews for branding, packaging, websites, and sustainability claims.

Let’s protect your business— and your reputation.

Disclaimer: This post is for general informational purposes only and should not be considered legal advice. No attorney-client relationship has been formed by viewing or engaging with this post. To the extent this post is considered attorney advertising, prior results do not guarantee similar outcomes.

Victoria Wiley