In Part One of this series of posts, I discussed how the FTC, through the Green Guides is taking enforcement actions against companites that greenwash thier products. I also mentioned that FTC punishment can be rather harsh.
For instance:
- The FTC has enforcement authority to issue a cease and desist order for up to 20 years.
- The prohibition against unsupported or deceptive claims can extend to officers, subsidiaries and other divisions of the company.
- Cease and Desist authority includes what is called “fencing in relief.” Which can be applied not only to the one product that violates the Greenguides but to other products the violating company sells as well.
While penalties will typically not become an issue until a cease and desist order is violated, the order itself will still carry very onerous terms and conditions. For these reasons, before you make any green marketing or advertising claims, you should have your attorney review them to ensure they are meet FTC requirements.
[...] up on our previous posts about the FTC Green Guides (which are in the process of being revised), we learned that FTC lawyers recently filed a lawsuit [...]