Using 'Eco-friendly' Recklessly Is 'Deceptive Advertising'... Fair Trade Commission Implements Greenwashing Guidelines

Fair Trade Commission to Implement Revised Guidelines on Labeling and Advertising Review from Next Month 1

The Fair Trade Commission has issued guidelines stating that when advertising a product as "eco-friendly," the entire life cycle of the product must be comprehensively considered. For example, if only the mattress part of a bed receives eco-friendly certification but the entire bed is advertised as certified, it may be considered deceptive advertising.

The Fair Trade Commission announced on the 31st that the revised guidelines for environmental-related labeling and advertising will take effect from the 1st of next month. The revised guidelines serve as a kind of "greenwashing guideline" designed to prevent deceptive environmental labeling and advertising. Greenwashing is a portmanteau of Green and White Washing, referring to the act of labeling or advertising products that are not eco-friendly as if they were.

To enhance consistency in law enforcement and improve predictability for businesses, the Fair Trade Commission has prepared guidelines that include principles for judging unfair advertising such as false or exaggerated claims, deception, unfair comparisons, and defamation related to environmental matters, along with examples of legal violations by type. The guidelines clearly state the "whole-process principle," which prohibits advertising or labeling that suggests environmental improvements if the overall effect is offset or diminished when considering the entire process, even if some stages such as raw material acquisition, production, distribution, use, or disposal show environmental improvements.

For instance, even if carbon emissions are reduced during the product manufacturing stage, if the product emits more carbon during distribution or disposal compared to similar products, advertising it as "eco-friendly" may constitute exaggerated or deceptive advertising.

The guidelines also include a principle that prohibits omitting, concealing, or downplaying some or all facts that influence consumers' purchasing decisions, such as obtaining eco-friendly certification only for the mattress part of a bed but advertising the entire product as an eco-friendly bed. Similarly, if only some pork is raised without antibiotics but the entire brand’s pork is advertised as "raised without antibiotics," it may be considered false or exaggerated advertising.

However, acts that legitimately exercise intellectual property rights, such as using a registered trademark as a brand under the Trademark Act, are recognized as exceptions. The Fair Trade Commission incorporated greenwashing cases that may constitute legal violations based on past rulings and overseas examples into the guidelines.

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