FTC called to pre-empt state green laws - Federal Trade Commission - Taking Stock - column

FTC Called to Pre-Empt State Green Laws

After years of crossing the street to avoid contact with environmental activists, industry is suddenly snuggling up to the "Greenies." Not only is the "environment" in fashion--it's a potential cash cow for many makers.

The growing consumer demand for recycled products, reusable containers and biodegradable packaging has turned environmentalism into a profit center.

For once, Mother Earth and the marketplace are on the same side! But there are problems.

A few bad apples are taking advantage of the absence of national standards for environmental product claims. Indeed, one industry group warned recently that a number of firms "seem willing to take advantage of the absence of clear rules for environmental marketing by making claims that are unsubstantiated or otherwise deceptive."

Others, meanwhile, view lack of promotional guidelines for "green" products as a reason to avoid advertising them altogether.

The "solution" to these problems is being hammered out by shoot-from-the-hip state lawmakers across the country who are pushing legislation to create standards of their own for environmental marketing.

The upshot: the likelihood of a patchwork system of confusing and conflicting ground rules governing environmental product claims across the United States.

The solution: according to some industry groups, it's time to look for help in Washington.

Indeed, the Federal Trade Commission is under pressure from manufacturers to step in and establish nationwide regulations for "green" product claims.

According to one industry group petition seeking FTC action on this front, unless the Feds move quickly to preempt these state standards, it could become difficult for any maker to engage in environmental advertising.

"This sort of state-by-state, or even locality by locality [regulation of product claims] seems certain to retard environmental improvements," the petition warned.

One approach under consideration would involve the development of FTC guidelines for five distinct types of environmental product claims: recyclability, recycled content, source reduction, refillable or reusable containers and compostability.

Certainly, there's more than a touch of irony in the fact that industry is running to FTC for protection from overzealous state regulators.

Not too long ago FTC itself was viewed as a bureaucratic busybody that would jump on any excuse to poke around in everybody else's business. Does industry really want to rekindle the commission's meddlesome nature and resurrect the "national nanny" of Pennsylvania Avenue?

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