No Result
View All Result
SUBSCRIBE | NO FEES, NO PAYWALLS
MANAGE MY SUBSCRIPTION
NEWSLETTER
Corporate Compliance Insights
  • Home
  • About
    • About CCI
    • CCI Magazine
    • Writing for CCI
    • Career Connection
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Library
    • Download Whitepapers & Reports
    • Download eBooks
    • New: Living Your Best Compliance Life by Mary Shirley
    • New: Ethics and Compliance for Humans by Adam Balfour
    • 2021: Raise Your Game, Not Your Voice by Lentini-Walker & Tschida
    • CCI Press & Compliance Bookshelf
  • Podcasts
    • Great Women in Compliance
    • Unless: The Podcast (Hemma Lomax)
  • Research
  • Webinars
  • Events
  • Subscribe
Jump to a Section
  • At the Office
    • Ethics
    • HR Compliance
    • Leadership & Career
    • Well-Being at Work
  • Compliance & Risk
    • Compliance
    • FCPA
    • Fraud
    • Risk
  • Finserv & Audit
    • Financial Services
    • Internal Audit
  • Governance
    • ESG
    • Getting Governance Right
  • Infosec
    • Cybersecurity
    • Data Privacy
  • Opinion
    • Adam Balfour
    • Jim DeLoach
    • Mary Shirley
    • Yan Tougas
No Result
View All Result
Corporate Compliance Insights
Home Compliance

“Just the Facts, Ma’am:” FTC Actions Target “Biodegradable” Claims

by James A. Kosch
January 6, 2014
in Compliance
paper bag indicating 100 percent biodegradability and recyclability

Armed with its revised Green Guides, the Federal Trade Commission (FTC) continues to police what it sees as false and misleading environmental claims.  In October, the agency announced six enforcement actions in response to marketing of plastic bags, golf tees, storage containers and the like as “biodegradable.” Civil penalties ran as high as $450,000.

ECM Biofilms’ MasterBatch Pellets plastic additive was central to three of the enforcement actions.  As the FTC noted in a press release, ECM Biofilms had touted MasterBatch Pellets as biodegradable and had even handed out its own “certificates of biodegradability” in an attempt to add some gravitas to the claim.  But according to regulators, “these purportedly biodegradable plastics do not in fact biodegrade within a reasonably short period of time after disposal in a landfill … Moreover, the complaint alleges that ECM has no substantiation to support its claims that its additive makes plastic biodegradable.”

This alleged lack of substantiation helped get ECM customers such as American Plastic Manufacturing, which makes plastic bags, and CHAMP, which makes plastic golf tees, in hot water with regulators.  Having added MasterBatch Pellets to their own products, these ECM customers made false and misleading claims when they subsequently marketed those products as biodegradable, the FTC asserted.  “The complaint charges ECM with providing its customers and independent distributors … with the means to deceive consumers,” the agency noted.

Regulators also went after Clear Choice Housewares for selling so-called biodegradable storage containers and sued Carnie Cap for allegedly marketing plastic rebar covers as “100 percent biodegradable.” Finally, the FTC targeted AJM Packaging Corp. for its use of adjectives such as “biodegradable,” “compostable” and “recyclable” to describe products such as paper plates, lunch bags and grocery bags.

Under the Green Guides, biodegradability claims must be “true and supported by competent and reliable scientific evidence.” In particular, the onus is on companies to prove “that the entire plastic product will completely decompose into elements found in nature within one year after customary disposal (defined as disposal in a landfill, incinerator or recycling facility) before making any unqualified [emphasis added] biodegradable claim.” For qualified claims, meanwhile, “the companies must state the time required for complete biodegradation in a landfill or the time to degrade in a disposal environment near where consumers who buy the product live.”  Alternatively, the companies may “state the rate and extent of degradation in a landfill or other disposal facility, accompanied by an additional disclosure that the stated rate and extent do not mean that the product will continue to decompose.”

If you think the calculations above must amount to a potentially confusing, complicated and difficult evidentiary process—one that, in the end, could hinge on the discretion and interpretation of regulators in a way that would make any compliance officer cringe—you are not alone.  Indeed, based on recent news accounts and anecdotal reports from legal clients, it is clear that when it comes to environmental claims, more companies are following advice Mark Twain once gave to aspiring writers: “If you can catch an adjective, kill it.” They are giving up on the vague terminology that has heretofore been part and parcel of green marketing and, instead, are sticking to a “just-the-facts” approach.

This is a wise move.  Companies can use fact-based language to convey positive messages with minimal risk.  If Acme Paints has reduced the level of volatile organic compounds for each gallon sold by a specific and irrefutable amount, the company can and should say so.  This is a far cry from loudly trumpeting something along the lines of, “We’re always green—no matter what color of paint you choose!” or “Saving the Earth, one eco-friendly gallon at a time!”

Government agencies appear unwilling to adopt hard-and-fast regulations on environmental claims, preferring instead to resort to flexible guidelines that give them lots of discretion on enforcement.  This raises the risk level for companies that make broad environmental claims.  The risk encompasses not just the embarrassment and expense associated with federal enforcement actions, but also the damages that can accrue from lawsuits filed by any number of ideologues or opportunists.  At the state level, in particular, the proliferation of consumer fraud and/or private right-of-action statutes means the prospect of a class-action lawsuit often looms even when government action does not.  Fighting frivolous litigation is sometimes necessary, but it is typically cheaper to buy peace than to fight for justice.  In the end, the company shells out lots of money for legal bills and takes a hit on its reputation in the marketplace, even if it “wins” the actual case.

Moreover, subjective language is a conundrum unto itself.  If the company has installed, say, 10 low-flow toilets at its headquarters, this is an indisputable fact.  In the realm of the subjective, however, pleasing all sides is nearly impossible.  When Apple and Dell—two of the world’s most politically correct corporations—were waging a legal battle over which company had the “greenest” laptops, the response from some environmentalists was further criticism: “Apple is getting greener, but not green enough,” said one Greenpeace activist quoted in a 2008 Wired article.  “The MacBook Air has less toxic PVC plastic and less toxic BFRs, but it could have zero, and that would make Apple an eco-leader.”

Let poets and dreamers use flowery language where they will.  When it comes to the product, consumers can draw their own conclusions based on the facts at hand.


Previous Post

Supermarket to the World – The ADM FCPA Enforcement Action

Next Post

Trade Compliance Is Simple, Except When It Isn’t

James A. Kosch

James A. Kosch

James Kosch, LeClairRyanAbout the Author Attorney James A. Kosch is a Newark, NJ -based shareholder in LeClairRyan’s Tort Defense Practice and a director of the New Jersey State Bar Association’s environmental law section.

Related Posts

You are now registered!

Webinar: What Employee Experience Reveals About Your E&C Program

by Corporate Compliance Insights
May 16, 2025

11 a.m. - 12 p.m. ET Tuesday, June 3 Are your ethics and compliance metrics capturing what really matters? Programs...

LRN 2025 Program Maturity Global Study

2025 Global Study on Ethics & Compliance Program Maturity

by Corporate Compliance Insights
May 16, 2025

How does your ethics and compliance program measure up? Global study Ethics & Compliance Program Maturity What’s in this global...

check engine light

What Gets Measured Gets Managed, but What Actually Matters in Compliance?

by Keshonda Walker
May 16, 2025

Looking beyond standard measurements to identify the quiet signals that help compliance teams address issues before they become crises

call center mentor and caller

Telemarketing Rule Update Demands Faster Action on Consumer Opt-Outs

by Paul St. Clair
May 16, 2025

New requirements reduce opt-out processing time from 30 to 10 days and expand what qualifies as a "reasonable" consumer revocation...

Next Post
businessman considering confusing options

Trade Compliance Is Simple, Except When It Isn’t

No Result
View All Result

Privacy Policy | AI Policy

Founded in 2010, CCI is the web’s premier global independent news source for compliance, ethics, risk and information security. 

Got a news tip? Get in touch. Want a weekly round-up in your inbox? Sign up for free. No subscription fees, no paywalls. 

Follow Us

Browse Topics:

  • CCI Press
  • Compliance
  • Compliance Podcasts
  • Cybersecurity
  • Data Privacy
  • eBooks Published by CCI
  • Ethics
  • FCPA
  • Featured
  • Financial Services
  • Fraud
  • Governance
  • GRC Vendor News
  • HR Compliance
  • Internal Audit
  • Leadership and Career
  • On Demand Webinars
  • Opinion
  • Research
  • Resource Library
  • Risk
  • Uncategorized
  • Videos
  • Webinars
  • Well-Being
  • Whitepapers

© 2025 Corporate Compliance Insights

Welcome to CCI. This site uses cookies. Please click OK to accept. Privacy Policy
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT
No Result
View All Result
  • Home
  • About
    • About CCI
    • CCI Magazine
    • Writing for CCI
    • Career Connection
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Library
    • Download Whitepapers & Reports
    • Download eBooks
    • New: Living Your Best Compliance Life by Mary Shirley
    • New: Ethics and Compliance for Humans by Adam Balfour
    • 2021: Raise Your Game, Not Your Voice by Lentini-Walker & Tschida
    • CCI Press & Compliance Bookshelf
  • Podcasts
    • Great Women in Compliance
    • Unless: The Podcast (Hemma Lomax)
  • Research
  • Webinars
  • Events
  • Subscribe

© 2025 Corporate Compliance Insights