Professional Documents
Culture Documents
In Consumer Products
Mahi Mallina
Professor Babcock
17 April 2023
1
Introduction
campaigns, marketing has played an influential role for centuries in getting consumers to buy
companies’ products. But, what happens when the marketing becomes environmentally
deceitful? Greenwashing is the practice by which companies market a product to look more
environmentally-friendly than it actually is. Historically, the term was first invented in a 1986
essay by American environmentalist James Westerveld that was written to note the irony of hotel
guests in Fiji being asked to reuse towels when the hotel’s expansion destroyed the local
environment.1 Since then, the phrase has been used to describe the countless number of
companies publicly and misleadingly flaunting their products’ greenness in order to capitalize on
the demand for environmentally friendly products. With the threat of environmental damage
becoming an increasingly pressing issue, it is imperative that both citizens and government
officials in the United States consider new targeted solutions to navigate greenwashing.
Greenwashing can be done in many ways, but according to the environmental marketing
consulting firm TerraChoice, it usually falls under seven criteria known as the “7 Sins of
Greenwashing.” One of the sins include making claims that cannot be verified based on the
information given to consumers (no proof).2 For instance, companies can claim cosmetics to be
paraben-free in order to convey the product is “natural” despite having other harmful synthetic or
artificial ingredients.3
1
David Markham, Anshuman Khare, and Terry Beckman, “Greenwashing: A Proposal to Restrict Its
Spread,” Journal of Environmental Assessment Policy and Management 16, no. 04 (2014): 1,
https://doi.org/10.1142/s1464333214500306.
2
Ibid
3
Ibid
2
However, the most prominent form of greenwashing occurs in promoting the actual
product. Nowadays, many products use vague “buzzwords” to draw consumers’ attention;
whereas the word “organic” is regulated by the USDA and FDA, other synonyms such as clean,
natural, and sustainable are unregulated and can be used even without clear concrete evidence of
being beneficial for the environment.5 In the eyes of a consumer, all the words could seem the
same, but it could actually mean the stark difference between helping or hurting the planet.
Greenwashed promotion might also mean strategically designing packaging based on color
4
Yiping Zhang, “Beware of Greenwashing in Finance,” Impakter, August 28, 2019,
https://impakter.com/beware-of-greenwashing-finance/.
5
Ecocult, “What’s the Difference between Green, Sustainable, Eco-Friendly, Ethical, Fair Trade, Clean,
Organic, Non-Toxic, and Conscious? - Ecocult,” Ecocult, May 8, 2018,
https://ecocult.com/whats-the-difference-between-green-sustainable-eco-friendly-ethical-fair-trade-clean-o
rganic-non-toxic-and-conscious/.
3
Greenwashed marketing works by making it seem like consumers need the product to
support the environment, causing them to become ignorant of the actual evidence. When looking
at labels, consumers may tend to look more at whether the packaging is recyclable and if it has
any prominent environmental stamps than the actual ingredients and fine print. Design also plays
a role. The colors green and blue, images of nature and specific buzz words discussed above
work together to conjure an image of sustainability and being “good” for the environment.
Psychologically, people will often turn a blind eye to the specifics of so-called green
products in order to feel better about themselves and their environmental impact.7 In economic
theory, due to the increased usage of “sustainability–related claims,” people are easily convinced
due to their familiarity in everyday life and forget to consider the evidence behind said claims.8
6
Leon Walker, “Consumers Don’t Trust Green Product Claims, Survey Says,” Environment + Energy
Leader, March 28, 2012,
https://www.environmentalleader.com/2012/03/consumers-dont-trust-green-product-claims-survey-says/.
7
Leonie A. Venhoeven, Jan Willem Bolderdijk, and Linda Steg, “Why Acting Environmentally-Friendly
Feels Good: Exploring the Role of Self-Image,” Frontiers in Psychology 7 (November 24, 2016): 1846,
https://doi.org/10.3389/fpsyg.2016.01846.
8
Christian Robledo, “Discussion of Existing Environmental Marketing Regulations and the Need for
Stricter Legislation,” Touro Law Review 38, no. 3 (2022): 937–67,
https://digitalcommons.tourolaw.edu/lawreview/vol38/iss3/8.
4
persuasive marketing.
illegal and highly unethical in the United States, but it can also ruin the company’s reputation if
they are found to be exaggerating their sustainability. For instance, studies have also shown that
greenwashers typically see an average of a 1.34% drop in the American Customer Satisfaction
Index (ACSI), which is tied to reduced returns on investment and market prices for shares.9 This
drop could ultimately lead to weaker business performance and competitiveness; with more and
more companies greenwashing, this could also cause catastrophic economic downfalls for the
nation as a whole. More importantly, their false claims and inaction can actually contribute more
to environmental damage than what the public perceives. But why does this matter?
The last decade has seen notable changes in technology, media and more importantly, the
environment. Recent years have brought on many challenges with finding a balance between
meeting the needs of an ever increasing population and saving the planet from irreparable
damage.
The production lifecycle is likely one of the largest contributors of environmental harm
thanks to the harsh ingredients and manufacturing/transportation processes used to meet the
needs of billions of people every year. Consumer products often include many toxic chemicals
9
Rachel Koning Beals, “Here’s How Much ‘Greenwashing’ Can Shave from Company Earnings,”
MarketWatch, 2022,
https://www.marketwatch.com/story/heres-how-much-greenwashing-can-shave-from-company-earnings-1
1658778585.
5
and plastic-based packages that when discarded irresponsibly, could contaminate freshwater
sources and the surrounding land. According to the United Nations (UN), there are up to 51
trillion microplastic particles in the ocean from cosmetics or broken-down pieces of packaging.10
This pollution can cause digestive tract issues and poisoning in marine life as well as humans,
leading to detrimental health complications, disrupted food chains, and even premature death.
The misuse of the environment has consequences, many of which have everyday effects
now and in the future. The production and transportation of products produce significant
amounts of carbon dioxide emissions— more than 2 gigatons of CO2 a year!— that could
increase “global temperature by as much as 4.4°C by the end of the century,” droughts, food
shortages, and housing displacements; without action, climate change may become irreversible
as early as 2030.11 Furthermore, the pollution caused by plastic waste and emissions can also
make it harder to breathe and destroy agricultural crops, significantly impacting the way of life.
Figure 3. How climate change will affect Earth (Nature Climate Change)12
10
United Nations, “Climate Action Fast Facts,” United Nations (United Nations, 2020),
https://www.un.org/en/climatechange/science/key-findings.
11
Ibid
12
Brian C. O’Neill et al., “IPCC Reasons for Concern Regarding Climate Change Risks,” Nature Climate
Change 7, no. 1 (January 2017): 28–37, https://doi.org/10.1038/nclimate3179.
6
Despite greenwashing having a long history, it has recently become a bigger issue,
especially with the looming fear of climate change hanging over the world population. Currently,
there are very limited regulations in the US as it is a murky category of marketing and is
part for the environment, greenwashing has become more prevalent in the consumer industry;
some popular examples include L’Oreal, Proctor & Gamble, and Nestle. A study done by The
Harris Poll found that more than 72% of surveyed global corporations based in the US engaged
in greenwash; 58% believe their organizations exaggerated their sustainability efforts and
minimized the actual size of their environmental footprint.13 One example would be when
Volkswagen marketed their diesel vehicles to be low-emission when in actuality, they were
emitting “up to 40 times the allowed limit for nitrogen oxide pollutants.”14 In other words,
companies mislead consumers with “green” products, diverting attention away from real
solutions to environmental problems. All of this evidence points to the fact it is up to the
government and individual consumers to reduce the effects of greenwashing and hold companies
Currently, greenwashing is being tackled both with government regulation and public
advocacy. Whereas the regulation looks to provide information to and penalize companies,
public advocacy is more focused on giving individual consumers the information they need to
not fall prey to aggressive sustainability marketing. Looking at the United States as a nation, the
13
Justin Keeble, “New Survey Reveals Executives’ Views about Sustainability,” Google Cloud Blog, 2022,
https://cloud.google.com/blog/topics/sustainability/new-survey-reveals-executives-views-about-sustainabil
ity.
14
Rachel Koning Beals, “Here’s How Much ‘Greenwashing’ Can Shave from Company Earnings”
7
federal government has two pieces of legislation to limit greenwashing: section 5 of the Federal
Section 5 of the FTCA lays the groundwork for taking legal action to limit greenwashing
by targeting violating companies directly. Despite not mentioning greenwashing specifically, the
section does prohibit a wider range of ‘‘unfair or deceptive acts or practices in or affecting
commerce.”15 Essentially, the Federal Trade Commision (FTC) has the power to enforce
consumer protection laws if and when it finds any violations through the various processes
provided by the US government. While the FTC is able to amend existing statutes/rules and
make new ones too, they will usually file complaints against companies they believe violated a
law.16 The company can then either choose to sign a consent agreement to settle the charges or
contest it in front of an administrative law judge, which could then lead to a dismissal or cease
and desist.17 Judicially, the FTC can also obtain civil penalties for consumer injury or additional
violations of cease and desist orders in district courts without initially going through the
administrative process.18 This is often a more effective avenue for action when a company’s
claims directly pose a problem to consumer welfare. One notable example is when complaints
were filed against Kohl’s and Walmart in the U.S. District Court for making false claims that
certain products were made from bamboo when they actually contained rayon and other harmful
chemicals.19 This approach is often preferable as it results in immediate injunctions and monetary
15
Federal Trade Commission, “A Brief Overview of the Federal Trade Commission’s Investigative, Law
Enforcement, and Rulemaking Authority,” Federal Trade Commission, June 7, 2013,
https://www.ftc.gov/about-ftc/mission/enforcement-authority.
16
Ibid
17
Christian Robledo, “Discussion of Existing Environmental Marketing Regulations and the Need for
Stricter Legislation,” 952
18
Ibid
19
Lesley Fair, “$5.5 Million Total FTC Settlements with Kohl’s and Walmart Challenge ‘Bamboo’ and Eco
Claims, Shed Light on Penalty Offense Enforcement,” Federal Trade Commission, April 8, 2022,
https://www.ftc.gov/business-guidance/blog
8
compensation. The two major corporations paid $5.5 million collectively to resolve the
greenwashing lawsuit.20
In addition to legal action, the FTC focuses on educating marketers and companies on the
criteria of claims considered to be greenwashing. The agency is responsible for overlooking the
Green Guides, which are a collection of principles first issued in 1992 and continuously revised
to provide companies with guidance on ensuring their environmental claims are not deceitful and
are substantiated.21 Although the Green Guides are not federally regulated and hence, not
enforceable, the FTC can take action based on Section 5a if they find a company in violation of
the guidelines.
On the other hand, the Lanham Act, officially known as the Trademark Act of 1946,
gives private companies, rather than the government, the power to fight greenwashing. Although
it has many purposes in the fight against trademark violations, Lanham Act has become
advertising false or deceptive claims to gain an unfair advantage in the market. Through civil
courts, the party at fault can be met with injunctive relief and be forced to pay settlements for the
Overall, both the FTCA and Lanham Act give the government and companies the
authority to fight against greenwashing, however the outcome of invoking them in court is
severely limited. The regulations do not provide specific guidelines on environmental claims;
rather, they focus on the idea of deceptive and unfair marketing as a whole. In other words,
20
Lesley Fair, “$5.5 Million Total FTC Settlements with Kohl’s and Walmart Challenge ‘Bamboo’ and Eco
Claims, Shed Light on Penalty Offense Enforcement”
21
Christian Robledo, “Discussion of Existing Environmental Marketing Regulations and the Need for
Stricter Legislation,” 953.
22
Legal Information Institute, “15 U.S. Code § 1125 - False Designations of Origin, False Descriptions,
and Dilution Forbidden,” LII / Legal Information Institute, n.d.,
https://www.law.cornell.edu/uscode/text/15/1125.
9
current federal actions are constrained by the fact that they provide little guidance on the
complex and ever-changing nature of greenwashing. The Green Guides are vague on what
environmental claims are actually deceptive and with limited revisions (the last being in 2012),
FTC enforcement has been minimal with fewer complaints being filed in recent years.
Figure 4. Environmental marketing cases brought by the FTC (Latham & Watkins)23
The regulations become even more ambiguous when it comes to more complex claims.
For instance, if a complex technical or scientific term is used, it is not grounds for a case as it has
“no meaning” to the regular consumer and therefore, not technically false in their eyes.24
Moreover, lawsuits and claims cannot be filed by consumers and therefore, the current solutions
do very little in protecting consumers. In the case of Made in the USA Foundation v. Phillips
Foods Inc, Phillips Foods filed a motion to dismiss the case, which succeeded, as consumers did
23
Latham & Watkins, “Anticipated Changes to FTC Green Guides Portend New Areas of Potential
Litigation,” Environment, Land & Resources, February 6, 2023,
https://www.globalelr.com/2023/02/anticipated-changes-to-ftc-green-guides-portend-new-areas-of-potenti
al-litigation/.
24
Ashley Lorance, “An Assessment of U.S. Responses to Greenwashing and Proposals to Improve
Enforcement,” Hofstra Law Student Works 3 (2010): 14.
10
not have the capability to sue under the Lanham Act.25 Even though it is attempting to act with
the consumers’ best interests in mind by disputing claims that affect them, the federal
government does not entirely acknowledge that consumers are also stakeholders in the issue.
Therefore, it makes it harder for them to stand up for themselves and make more meaningful
overwatch groups to provide consumers with helpful information on how to avoid green
marketing scams. Greenwashing Index was created from a collaboration between University of
Oregon professors and Enviromedia Social Marketing in 2007.26 The platform allows users to
submit ads, rate the respective company based on how accurate their claims are, and provide
support on what products should be avoided based on their environmental footprint. According
to Kim Sheehan, one of the co-founders, the public uses the information to “cut through the PR
spin” and gain more “honest” knowledge.27 Similarly, other platforms such as Green Story and
Provenance work to make technical data more user-friendly and up to date and highlight where
brands fall in terms of sustainability, both environmentally and humanely.28 These user-generated
resources offer critical information to people who are finding it increasingly difficult to identify a
Some individual companies have also reacted to the difficulties of finding real sustainable
products with certifications and labels in order to establish trust with their consumers. After
25
Ashley Lorance, “An Assessment of U.S. Responses to Greenwashing and Proposals to Improve
Enforcement,” 12.
26
Kim Sheehan and Benedetta Brevini, “An Interview with Kim Sheehan: Greenwashing in the Experience
of the Greenwashing Index,” Carbon Capitalism and Communication, 2017, 111,
https://doi.org/10.1007/978-3-319-57876-7_9.
27
Kim Sheehan and Benedetta Brevini, “An Interview with Kim Sheehan: Greenwashing in the Experience
of the Greenwashing Index,” 113.
28
Ibid
11
companies have the ability to voluntarily add specific certifications labels.29 These labels focus
on certifying not only specific issues such as energy or chemical use, but also the entire life cycle
of the product. Popular examples include GreenSeal and EnergyStar. Since they are substantiated
by credible, independently-verified evidence, the labels give consumers the ability to make
informed decisions not solely based on a company’s marketing strategies. They also provide a
may also diminish effectiveness and make it even more confusing for consumers to discern
greenwashing. Another disadvantage is that there could be fees for testing and receiving the
With climate change a pressing issue and the ever-increasing instances of climate change,
it is imperative that action be taken to limit greenwashing. As discussed above, the United States
does not currently have any policies in place that specifically target green marketing. Therefore
there will be two types of recommendations in this section: revising existing legislation and
Although there is a framework for federal legal action, there is room for improvement in
terms of expanding the enforcement of the FTCA and Lanham Act. Since they are constrained by
vague advice, the first step would be to amend the Green Guides to create stricter and clearer
guidelines for writing environmental claims; less ambiguity could provide more guidance and
give the FTC more concrete evidence of violations for complaints. The guides are revised every
29
Ashley Lorance, “An Assessment of U.S. Responses to Greenwashing and Proposals to Improve
Enforcement,” 16.
30
Ibid
12
ten years— the newest coming out in 2023— based on consumer commentary.31 This year, the
FTC anticipates that they will provide more guidelines and support when dealing with claims
regarding net zero carbon emissions, climate change, and anything else the commenters believe
that could also be made is expanding their authority by making the interpretive guidelines into
actual rules. The FTC legally has the right to make enforceable statutes as discussed above, so
new rules could give them a clear indicator on when to take more frequent and targeted civil
action against violators. The Lanham Act and FTCA could also be amended to allow for
consumers to file complaints, which may allow for wider enforcement without restrictions such
as budget constraints. This suggestion isn’t a new idea as some individual states such as
California allow private citizens to enforce state statutes in court.33 Since each state already has
its own legislation, a federal amendment could be beneficial in giving any consumer in the nation
New solutions rooted in overwatch could also be implemented to limit the ambiguity of
whether a certain marketing tactic is even a form of greenwashing. It may be beneficial to take
inspiration from proposed EU regulations such as the Green Claims Directive. Like the FTCA
and Green Guides, the proposal would give clear guidance on what counts as an environmental
claim. However, it would also require companies to back up labels and claims such as
“Packaging made of 30% recycled plastic” with scientific evidence and be verified by an
31
Federal Trade Commission, “Regulatory Review; Request for Public Comment.” (Washington D.C.:
Federal Register, 2022).
32
Ibid
33
Ashley Lorance, “An Assessment of U.S. Responses to Greenwashing and Proposals to Improve
Enforcement,” 14.
34
“Green Claims,” European Commission, 2023,
https://environment.ec.europa.eu/topics/circular-economy/green-claims_en.
13
mandating that any information regarding how environmental standards were met or detailed
evidence about the product itself be made accessible to consumers via a website link, QR code,
etc. According to Frans Timmermans, Executive Vice-President for the European Green Deal,
this proposal can give consumers “the reassurance that when something is sold as green, it
actually is green.”35 Like overwatch groups, this approach would most likely add increased
transparency into a business’ production and formulation of a product to give consumers more
insight than what is currently provided via ads and packaging. When combined with other
third-party certifications, the government can ensure that consumers are buying products that are
Nevertheless, this proposal is still in the development stage and is just starting to get
attention; it is hard to determine how effective the directive would be in limiting greenwashing.
Furthermore, in order to be enacted in the US, the proposal would need to gain approval from
Congress and be vetoed by the President. This process could take years and may be stalled due to
Congress members’ differing political and personal ideologies. Even after being implemented,
the legislation would need to be enforced by independent verifiers and regulatory committees,
both of which come with substantial monetary costs to the federal government. However, the
United States has independent agencies like the Nuclear Regulatory Commission that are funded
by Congress, but recover 90% of their budget through fees (for license, testing and other
services) to give back to the Treasury.36 Even if the regulation itself is expensive and
reduce costs for the government in the long run. Other potential arguments come from those
35
“Consumer Protection: Enabling Sustainable Choices and Ending Greenwashing,” European
Commission, 2023, https://ec.europa.eu/commission/presscorner/detail/en/ip_23_1692.
36
Nuclear Regulatory Commission, “Revision of Fee Schedules; Fee Recovery for Fiscal Year 2022,”
Federal Register, 2022.
14
who believe in “small government” or the idea of the federal government having minimal
involvement in private lives and the economic market. These individuals often suggest voluntary
action and self-regulation to stop greenwashing, however studies have shown that those policies
monetary, time and ideological constraints, it would be in the nation’s best interest to pursue
Even with firm federal regulations, another crucial component of limiting the effects of
greenwashing would be to communicate with consumers, the primary stakeholders, directly. This
approach would be accomplished by providing consumers the resources they need to effectively
identify greenwashing and the steps they can take to learn more about the product before buying
it. Surveyors done with Australian consumers revealed that it is extremely difficult to make
decisions on what product they should buy as the information is not accessible while shopping.38
Providing tutorials and infographics on how to understand what different labels and claims mean
or are reliable may be helpful in allowing consumers to objectively read packaging and make
well-informed decisions. Similarly, having posters of the company’s carbon footprint and
evidenced sustainability actions taken could provide consumers readily-accessible insight into a
37
Dennis Kolcava, “Greenwashing and Public Demand for Government Regulation,” Journal of Public
Policy 43, no. 1 (December 12, 2022): 1–20, https://doi.org/10.1017/s0143814x22000277.
38
Piet Ed Kommers et al., “Revealing Greenwashing: A Consumer’s Perspective,” in Proceedings of the
International Conferences on Internet Technologies & Society (ITS), Education Technologies
(ICEduTECH), and Sustainability, Technology and Education (STE) (Melbourne, Australia, 2016), 245–50,
https://eric.ed.gov/?id=ED571459.
15
Figure 5: Example infographic that can be placed in stores to help consumers (Alive To Earth)39
In addition, there are many resources currently available on the Internet (such as the
overwatch websites discussed above) that consumers could be made more aware of by promoting
them through ad campaigns and prominent figures. This has been done many times by
government officials, especially during the COVID-19 pandemic. Televised through major
national news channels and social media, the Biden administration and Department of Health and
Human Services used famous people like Ryan Seacrest and Eva Longoria to persuade
Americans to get the vaccine through the “We Can Do This: Live” campaign. Media coverage
has the potential to attract a wide range of viewers who may feel emotionally connected to their
These regulations and communication campaigns could become inevitably costly and
politically polarizing. However, the costs could be balanced out with economic and
environmental benefits for both the government and companies. A study done in 2021 has shown
that of the surveyed 1000 American adults, “more than 80% consider trust a deciding factor” in
39
Deceiving vs. Reliable Labels, n.d., Alive to Earth, n.d.,
https://alivetoearth.org/what-is-greenwashing-5-tips-to-spot-and-avoid-it.
16
information, companies could actually see more revenue due to increased retention and
repurchase rates. The environment will also benefit as companies would be incentivized to take
real action in order to claim their products are “sustainable” and avoid civil action, potentially
reducing carbon emissions, wildlife degradation, and so much more. For instance, Patagonia has
already voluntarily implemented green initiatives by using more than 80% less water than
standard denim dyeing methods and reducing textiles sent to landfills by creating products with
recycled materials.41 By having the government work alongside citizens and companies, the
United States could pave a path towards a more sustainable future and do their part in saving the
Conclusion
In conclusion, the US government should consider modifying and adding new regulations
While there are currently federal solutions that have been successful to a certain extent, they
have been constrained by vague standards and little implementation. Regulations by private
entities such as certifications and websites are more successful, yet suffer from a lack of
awareness. By editing the FTCA and Lanham Act, modeling new regulations after the Green
Claims Directive, and increasing communication with the public, the US could see a decrease in
greenwashing and have a greater ability to prosecute violators. Even with the drawbacks faced
from time, money or ideological differences, it has become clear that new policies must be
40
Christine Alemany, “3 Ways Marketers Can Earn — and Keep — Customer Trust,” Harvard Business
Review, June 3, 2022, https://hbr.org/2022/06/3-ways-marketers-can-earn-and-keep-customer-trust.
41
Piet Ed Kommers et al., “Revealing Greenwashing: A Consumer’s Perspective,” 246.
17
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19
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