Fair Trade Commission to Block Eco-Friendly 'Fake Ads'... Greenwashing Guidelines Administrative Notice

From now on, the conditions for businesses to use the term ‘eco-friendly’ in advertising will become more stringent. The Fair Trade Commission (FTC) has revised its review guidelines to prevent deceptive eco-friendly labeling and advertising, and has taken measures to curb ‘greenwashing’ advertisements.

The FTC announced that it has prepared a revision of the ‘Guidelines on Environmental Labeling and Advertising’ and will hold an administrative notice period from the 8th to the 28th of this month. The revision serves as a kind of 'Greenwashing Guideline' designed to prevent deceptive eco-friendly labeling and advertising. Greenwashing is a portmanteau of Green and White Washing, referring to the act of labeling or advertising products as eco-friendly when they are not.

According to the revision, even if a business improves environmental aspects at certain stages, it must not label or advertise the product as environmentally improved if, when considering the entire product life cycle?including raw material acquisition, production, distribution, use, and disposal?the positive effects are offset or even diminished. For example, if a product emits more carbon during distribution and disposal stages compared to similar products but only advertises reduced carbon emissions during production, this could be considered deceptive advertising when the entire life cycle is taken into account.

Additionally, businesses must not omit, conceal, or downplay all or part of facts that significantly influence consumers’ purchasing decisions. For instance, if only the mattress part of a bed has received eco-friendly certification but the business advertises the entire product (headrest, frame, mattress) as certified “eco-friendly bed” without disclosing this, it may be considered deceptive advertising.

When businesses advertise or label their future goals or plans related to the environment, they must have concrete implementation plans at the time and secure the necessary personnel and resources to support them.

Businesses must also not advertise or label their brand in a way that suggests environmental attributes or benefits applicable to some products apply to the entire brand, or use phrases, designs, or colors that lead general consumers to perceive this incorrectly.

The FTC stated, “Through this revision, we expect greenwashing cases that hinder consumers’ rational purchasing and selection to be curbed, and that consumption of eco-friendly products will be activated through the provision of accurate information.” It added, “During the administrative notice period, we will fully collect stakeholders’ opinions and finalize and implement the revision after going through related procedures such as a plenary meeting resolution.”

This content was produced with the assistance of AI translation services.