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Misleading Labeling & Eco-Friendly Certifications | Greenwashing

Written by Joseph Lyon on . Posted in Class Action, Product & Consumer Safety News.

It seems like a given that when consumers go shopping and try to decide between several products, they should be able to trust what’s written on the product labels. But due to some common misleading marketing tactics, consumers may not always be presented with a true product representation. Misleading labeling can involve fake certifications and seals that may look good but in fact may actually signify very little. Qualification fraud lawsuits have been filed by plaintiffs who feel duped by corporations.

Recent false advertising lawsuits have alleged that several large companies have engaged in such unlawful business practices to make it seem like their products are more “sustainable” and “green” than they are in reality. Some products, believe it or not, have generic or baseless eco-friendly certifications stamped on their products to help appeal to environmentally minded consumers who value sustainability.

To be clear, the vast majority of reputable companies use real, trustworthy certifications on their packaging, but these certifications are not simply given away. Rather, these certs are earned through a long and expensive process that proves the company is actually doing something to protect the environment. Other companies who cannot prove they are sustainable but still wish to appeal to conscientious consumers, may add an in-house badge or seal that mimics a real certification, which in turn makes it appear that they are also certified green. Many consumers find this misleading and have taken legal action as a result.

Qualification Fraud & False Eco-Friendly Certifications

Fraudulent certificates are also a problem in some industries, and some companies have been so brazen as to apply a certification badge on products that never even applied for consideration. This is not only illegal but is also obviously very confusing territory for shoppers trying to decide what is both best for their family and best for the environment.

One problem is that many businesses use generic logos and make marketing claims without any regard for whether their product is actually eco-friendly. Companies that are truly eco-friendly will have scientific evidence to back up their claims, though most consumers don’t have time to research every single item they purchase at a store. That’s why it is important to be able to trust what is stocked on shelves and to hold any violating company accountable for misleading labeling and deceptive marketing schemes.

Why would corporations use false green labeling and engage in such risky, deceptive marketing campaigns? Well, companies are continually on the lookout for ways to improve brand reputation in an increasingly competitive marketplace. As pressure grows from stakeholders, some management may get desperate and make poor decisions in the effort to gain an eco-friendly customer base. To be sure, it is much easier to say you believe in sustainability than to actually be sustainable, because becoming sustainable and developing products that are certified “eco-friendly” is an expensive endeavor, which can be very unpopular with shareholders.

There are also loopholes that may be unethical but not necessarily illegal. There are many areas in environmental law that are murky, and while it is encouraged to be a clean, eco-friendly company, it is by no means compulsory. With profit on their minds, many corporations choose to take the easy road.

Greenwashing Consumers with Misleading Labeling

Unfortunately, it is necessary for individuals to be aware of such greenwashing fraud and deception in the marketplace. We urge consumers to be careful before they pay more for a product simply because they claim to be “eco-friendly” or “sustainable.” These general claims should be backed up by some evidence. The following green terms have been used by companies to sell their products:

  • Eco-friendly
  • Plant-Based
  • Earth-Friendly
  • Natural
  • Biodegradable
  • Ocean-Friendly
  • 100% natural product

Eco-friendly certifications have a wide range of uses and meanings. It could mean the company uses fully recyclable materials, sustainable packaging, uses energy-efficient resources, or follows the environmental standards of a well-known institution.

Food companies are renowned for pushing the limits of fair marketing law. These firms use a huge number of green labels on products that may or may not be truthful. You can go to the grocery store and look at hundreds of different claims about organic ingredients, low environmental impact, lack of preservatives, or mentions of a sustainable farm. This has become so commonplace that consumers may not even notice the packaging claims.

For example, some products may be falsely represented as “certified USDA organic.” This clearly violates the law and federal organic regulations, but other violations are less obvious. They may just create their own badge that looks similar and slap it on a product.

The textile industry is another big offender and has faced numerous false advertising and misleading labeling lawsuits. Clothing has all kinds of green labels with bold claims about how raw materials are “ethically sourced” or made from organic materials.

So-called sustainable clothing should be treated with suspicion. The Changing Markets Foundation found that 59 percent of sustainability claims by dozens of major fashion brands may have misled customers with greenwashing claims. H&M’s “Conscious Collection,” for one, allegedly had higher levels of fossil-fuel-produced, non-biodegradable synthetic fibers than their regular lines.

How Can Consumers Identify Misleading Labeling?

We urge clients to be cautious of labels that use broad or generic language to describe their eco-friendly methods. If a label uses phrases like “Natural,” “Eco-Friendly,” or “Green” without providing any third-party certification, it should give you pause.

Any claim that sounds too good to be true just might be. We see a lot of claims about elaborate plastic packaging that is meant to be made from 100% recycled materials or is “carbon neutral.”

“Biodegradable” is a term that sounds nice, but it doesn’t mean much. It is not synonymous with “compostable,” and it could take something 100 years to biodegrade.

It is much easier to look for proper seals, trustworthy badges and certificates that are familiar and may include the following:

  • B Corp Certification
  • Rainforest Alliance certification
  • Fairtrade certification
  • Forest Stewardship Council (FSC)
  • Soil Association
  • Cradle to Cradle certification
  • OEKO-TEX
  • 1% for the Planet
  • Cruelty Free International

Can You File a Misleading Eco-Friendly Labeling Lawsuit?

We offer free greenwashing case reviews and consultations for potential plaintiffs in all fifty states. We are always looking for ways to push companies to be more aware of the environment, and to properly bring sustainable products to the consumer.

Recently, a bundle of lawsuits was filed related to unproven sustainability claims and possibly false eco-labels. Walmart, Mowi, Gorton’s, ALDI, Conagra, Bumble Bee Foods, and Red Lobster have all been named defendants in such complaints.

Other lawsuits have challenged the Marine Stewardship Council (MSC), the Aquaculture Stewardship Council (ASC), and the Global Seafood Alliance’s Best Aquaculture Practices eco-labels, alleging that the programs make fraudulent sustainability claims.

This particular legal space is important to our legal team, and we look forward to hearing from you regarding any claim of misleading eco-friendly labeling and marketing. Call for a free consultation.