• by Gil Friend , August 19, 2009

Green marketing claims describe, or assert, green attributes of companies' products and services. Consider, for example, two food packages, one labeled "100% Organic" on one and "the other Eco-friendly." Both make claims about the products, but they have different meanings and impacts: One has a specific legal definition; the other is so unspecific that many find it misleading.

Buyers have varying affinities for green products, but the bottom line is that green claims appeal to a large and growing constituency that is often willing to pay price premiums for "greener" products.

Inaccurate or overstated green claims can also turn people off of green marketing even if a watchdog group isn't pointing fingers. If consumers start tuning out green messages, significant market opportunities will be lost, both for individual companies overstating their green claims and green products in general.

Greenwashing

Greenwashing is the act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service-even with the best of intentions. Avoid it, period. "The 6 Sins of Greenwashing," from marketing firm Terrachoice, observed this order of frequency:

• The "sin of the hidden trade-off": A company makes a green claim on one product attribute, which obscures a less green aspect. For example, if you advertise that your shirt is made of 100% organic cotton, but it was processed with toxic dye, this would be considered a hidden trade-off.

• The "sin of no proof": Companies claim that their products are made in factories with safe working conditions, but consumers have no way of verifying the claim.

• The "sin of vagueness" is commonly seen in recycled materials claims. If a company says it uses "recycled paper," it could mean they recycle scrap material from within the manufacturing process and count that as recycled material. Others use post-consumer recycled material. The best way to avoid vagueness is to be specific; for example, "this product contains 70% post- consumer recycled material."

• The "sin of irrelevance": A company boasts its product is "CFC-Free" even though all products are, because chlorofluorocarbons were banned in the 1980s. Some products that are completely unrelated to CFCs even carry that meaningless claim, but still mislead consumers.

• The "sin of fibbing": A euphemism for claims that are simply false. Lying to your customers is ultimately counterproductive, as well as unethical.

• The "sin of lesser of two evils": Positioning a harmful product as greener, such as organic cigarettes.

Honest claims

With what not to do in mind, make good, clear, green claims that are specific, truthful, verifiable, and meaningful. Review applicable regulations before launching green products or marketing campaigns. Canada has established guidelines, and the U.S. Federal Trade Commission is reworking its own policies as I write this. ISO standard 14021 covers green claims. Additional legislation is on the way in the United States and in other countries, so be sure you know which claims are legally binding before making those claims.

The best policy is to make appropriate, accurate green claims that are more likely to pass regulatory scrutiny, and customers' smell test.

Making green claims

Before you make green product claims:

• Assess which of your products and services might deserve green claims.

• Review your current claims to make sure they're sound, legal, and informative.

• If a labeling or certification scheme doesn't exist, ask customers what aspects of "green" are most important to them.

• If an independent verification system exists for your product (or business), consider the costs and benefits of having your claims formally certified