Greenwashing Claims | Protecting Consumers from Deceptive Practices

From climate change to pollution, we’re all looking for ways to protect our planet. One of these ways is to purchase products less harmful to the environment and be more conscious about what companies we back through our spending.

Many companies have noticed our concern and have shifted their brand and messaging toward sustainability, promoting their products as eco-friendly to show that they too care about the Earth. However, many of them may be doing this not out of good intentions.

Greenwashing is when a company gives the false impression that they’re doing more for the environment than they really are. They might use misleading labels or exaggerated claims to make their products seem green and responsible.

Unfortunately, this can trick consumers into thinking they’re making eco-friendly choices when they might not be. The Lyon Firm has been protecting consumer rights for nearly two decades. If you have been misled by false environmental claims from a company, you may qualify for a greenwashing lawsuit.

Get in touch with us online or call (513) 381-2333 today to learn how we can help you take a stand against companies deliberately misleading the public.

“Joe Lyon is a true professional in every essence of the word. He has been a pleasure to work with and know. I highly recommend The Lyon Firm!”

-Kaylie T.

What Is Greenwashing?

Greenwashing is when a company pretends to be more environmentally friendly than it really is. Companies might use terms like “eco-friendly,” “green,” or “natural” on their products or in their marketing, even though they aren’t making any real efforts to help the planet.

It’s a trick to make consumers feel good about buying their products, but it doesn’t actually benefit the environment. For example, a company might advertise that their packaging is recyclable, but if the materials used aren’t actually recyclable, it’s misleading.

In some cases, companies may use greenwashing to cover up the fact that they actually participate in environmentally harmful activities.

Companies may latch on to several greenwashing buzzwords, including:

• Sustainable
• Eco-friendly
• Green
• Plant-Based
• Net zero carbon (carbon neutral)
• Reusable
• Recyclable
• Clean
• Plastic-Free
• Climate Neutral

Companies engaging in greenwashing usually have no scientific evidence or proof to substantiate their claims. Instead, they rely on these vague terms to manipulate the public.

Why Are Greenwashing Claims Harmful?

Greenwashing is dangerous because it can lead people to make choices that they think are better for the environment but aren’t.

When companies lie about their eco-friendly practices, it stops real progress toward protecting the planet. It also makes it harder for consumers to trust which brands are truly sustainable.

If greenwashing goes unchecked, it encourages companies to prioritize their profits over doing what’s right for the environment, leaving the public and the planet to pay the price.

Companies that lie and hide behind greenwashing claims tend to charge more for their products or services, preying and hurting innocent consumers who only want to take care of the environment.

In the U.S., consumers have important rights and protections, but unfortunately, some companies still try to mislead and defraud their customers. If you’ve been a victim of greenwashing, filing a consumer fraud lawsuit is one of the most effective ways to hold these companies accountable and protect your rights.

The Lyon Firm is ready to fight for people affected by greenwashing attempts. Contact us online or call (513) 381-2333 today.

The FTC on Greenwashing

With so many companies eager to capitalize on people choosing to buy more “eco-friendly” and “green” products, the Federal Trade Commission (FTC) has stepped in to put a stop to misleading and fraudulent greenwashing practices.

To keep businesses honest and protect consumers, the FTC created something called the Green Guides. These guides are a set of rules and recommendations for companies on how to make truthful environmental claims.

The goal is to make sure that when a company says something is “green” or “eco-friendly,” the claim is clear and backed up by facts.

The Green Guides were first introduced in 1992 and have been updated several times, most recently in 2012. The updates have helped companies understand how to make their marketing more transparent and trustworthy.

The guides lay out basic rules for making any environmental claims. For example, if a company says a product is “environmentally friendly,” it needs to be able to prove it. The claim should be clear enough that consumers can easily understand it and shouldn’t be misleading in any way.

The guides also show how consumers are likely to understand certain terms, like “recyclable,” “natural,” or “eco-friendly.”

For instance, a claim that a product is “made with recycled materials” could mean different things depending on how much of the product is actually made from those materials.

Sometimes, a claim might need extra explanation to avoid misleading consumers. If a company says a product is “made with renewable energy,” it should clarify how much energy came from renewable sources and whether it truly makes the product more eco-friendly.

The FTC’s 2012 updates also brought new guidelines for things like using eco-labels or certification seals, which are used by third-party organizations to show that a product meets certain environmental standards.

The guides remind companies that if they use these labels, they need to make sure the label is real and that it matches the product’s environmental performance.

Another big change in the Green Guides involved claims about carbon offsets. If a company says it offsets its carbon emissions by planting trees or investing in renewable energy, the claim should be clear and supported by evidence. The company must show how much carbon is being offset and how effective those actions really are.

Can Companies Be Held Liable for False Recyclability Claims?

A product labeled “recyclable” can affect what you choose to buy and how much you are willing to pay for it. Problems can arise when the product cannot actually be recycled through the programs available where it is sold.

These claims are sometimes described as greenwashing cases. Consumers allege that a company made environmental claims that gave them a misleading picture of what would happen to the product after they put it in the recycling bin.

State consumer protection laws provide ways to challenge those claims. In California, for example, lawsuits involving allegedly misleading environmental marketing have been brought under the Unfair Competition Law, False Advertising Law, and Consumer Legal Remedies Act.

The Federal Trade Commission also addresses recyclability claims through its Green Guides. The Guides provide standards for how companies market environmental benefits. Under the Green Guides, a company may need to qualify a recyclability claim when appropriate recycling facilities are not available to a substantial majority of the consumers or communities where the product is sold.

For a consumer, the question is fairly simple: Could you actually recycle the product through the recycling system available to you?‍

Keurig Dr Pepper and K-Cup Pods

Keurig faced a consumer class action over representations that its single-use K-Cup pods were recyclable. In 2022, the company agreed to a $10 million settlement and changes to its packaging, including language addressing the fact that the pods are not recycled in many communities.

The issue later reached federal securities regulators. In September 2024, the Securities and Exchange Commission charged Keurig Dr Pepper over statements made to investors about the recyclability of K-Cup pods. The company agreed to pay a $1.5 million civil penalty without admitting or denying the SEC's findings.

Reynolds Consumer Products and Hefty Recycling Bags

Hefty recycling bags drew similar scrutiny because consumers were purchasing a product specifically marketed for recycling.

In February 2026, the Arizona Attorney General reached a settlement with Reynolds Consumer Products over allegations that Hefty bags marketed as recycling bags were not recyclable. Reynolds agreed to pay $212,000 and change the packaging nationwide, including a front-of-package statement informing consumers that the bags themselves are not recyclable.

Connecticut and Minnesota have also pursued actions involving Hefty recycling bags. For consumers, these cases show that a misleading claim can carry legal consequences when the product's real-world recyclability does not match what buyers were led to expect.

Companies Accused of Greenwashing

Numerous well-known and popular companies have been accused of practicing greenwashing, including:

• Kohl’s
• Walmart
• Truly Organic
• Bed Bath & Beyond
• J.C. Penney
• Procter & Gamble
• Nordstrom
• Amazon
• Mattel
• Vons
• Benjamin Moore & Co.
• Mobil
• Target for allegedly “reef-friendly” sunscreens

If you are interested in seeing more companies accused of greenwashing, you can find a list here of corporations the FTC sued.

“Greenwashing isn’t just misleading; it tricks consumers into spending more money on products that aren’t truly sustainable. This not only hurts people financially but also undermines genuine efforts to save our planet.”

Joe Lyon, Founding Partner of the Lyon Firm

Greenwashing Settlement Examples  

In recent years, several companies have been made to pay hefty settlements to resolve greenwashing allegations. Organizations like the FTC and SEC have increased their efforts to crack down on companies making false environmental claims. Below are just a few cases that resulted in greenwashing settlements:

• $5.5 Million Settlement: Kohl’s paid $2.5 million for falsely claiming that products like sheets and towels were made from bamboo when they were actually rayon, while Walmart paid $3 million for making misleading eco-friendly claims about items such as blankets and nursing bras. Both companies violated federal textile labeling laws.
• $1.76 Million Settlement: Truly Organic and its founder were found to have falsely marketed their bath and beauty products as “100% organic” and “certified organic” when they did not meet USDA standards, leading to the FTC complaint and settlement.
• $1.5 Million Settlement: Keurig agreed to pay a civil penalty for making misleading statements in its 2019 and 2020 annual reports about the recyclability of its K-Cup coffee pods, despite knowing that major recycling companies would not accept them.

These cases represent just a fraction of the growing number of settlements against companies that engaged in greenwashing. As organizations hone in on this damaging and widespread practice, it’s likely we will continue to see more greenwashing litigation.

How a Greenwashing Lawyer Can Help You Build a Strong Case

When it comes to taking on big companies participating in greenwashing, having a skilled lawyer on your side can make a huge difference. They bring valuable knowledge, skills, and support that will improve your chances of success in a greenwashing lawsuit because they:

• Gather Critical Evidence: A lawyer will help you collect documents, testimonials, and any other proof that shows the company made false claims about its products or services.
• Understand the Laws and Regulations: A greenwashing claim can involve complicated laws and regulations, like the FTC guidelines or state consumer protection laws. An experienced lawyer familiar with these rules will know what legal strategies work to your advantage in your case.
• Know How to Stand Up to Corporate Giants: Going up against large corporations can be intimidating. These companies often have teams of lawyers ready to fight back. An attorney can challenge misleading statements and defend your rights effectively.
• Negotiate Settlements: A lawyer can negotiate on your behalf to ensure you get a fair settlement. They understand the value of your claim and will work hard to recover compensation that reflects that.

If you believe you’ve been misled by a company’s false claims, having a lawyer experienced in consumer fraud claims can help you take on powerful corporations confidently.

Also, studies show that cases are stronger when you get a lawyer involved. For example, a Martindale-Nolo study found that hiring a lawyer greatly boosts your chances of receiving compensation, as over 90% of those with legal representation secured a settlement or award, compared to just half of those who went it alone.