[Federal Register: June 10, 2008 (Volume 73, Number 112)]
[Proposed Rules]
[Page 32662-32665]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10jn08-8]
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FEDERAL TRADE COMMISSION
16 CFR Part 260
Guides for the Use of Environmental Marketing Claims; Green
Building and Textiles; Public Workshop
AGENCY: Federal Trade Commission.
ACTION: Announcement of public workshop; request for public comment.
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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') is
planning to host a public workshop on July 15, 2008, to examine
developments in green building and textile claims and consumer
perception of such claims. The workshop is a component of the
Commission's regulatory review of the Guides for the Use of
Environmental Marketing Claims, announced on November 26, 2007.
DATES: The workshop will be held on Tuesday, July 15, 2008, from 9:00
AM to 5:00 PM at the FTC's Satellite Building Conference Center,
located at 601 New Jersey Avenue, N.W., Washington, D.C. Any written
comments in response to this Notice must be received by August 15,
2008.
REGISTRATION INFORMATION: The workshop is open to the public, and there
is no fee for attendance. The FTC also plans to make this workshop
available via webcast, see (http://www.ftc.gov/bcp/workshops/
buildingandtextiles/index.shtml). For admittance to the Conference
Center, all attendees will be required to show a valid photo
identification such as a driver's license. The FTC will accept pre-
registration for this workshop. Pre-registration is not necessary to
attend, but is encouraged so that we may better plan this event. To
pre-register, please email your name and affiliation to
buildingandtextilesworkshop@ftc.gov. When you pre-register, we will
collect your name, affiliation, and your email address. This
information will be used to estimate how many people will attend. We
may use your email address to contact you with information about the
workshop.
Under the Freedom of Information Act (``FOIA'') or other laws, we
may be required to disclose to outside organizations the information
you provide. For additional information, including routine uses
permitted by the Privacy Act, see the Commission's Privacy Policy at
(www.ftc.gov/ftc/privacy.htm.) The FTC Act and other laws the
Commission administers permit the collection of this contact
information to consider and use for the above purposes.
WRITTEN AND ELECTRONIC COMMENTS: The submission of comments is not
required for attendance at the workshop. If you wish to submit written
or electronic comments to inform discussion at the workshop, such
comments must be received by July 1, 2008. All comments in response to
this Notice must be submitted no later than August 15, 2008. Comments
should refer to ``Green Building and Textiles Workshop--Comment,
Project No. P084203'' to facilitate organization of comments. A comment
filed in paper form should include this reference both in the text and
on the envelope, and should be mailed or delivered to the following
address: Federal Trade Commission/Office of the Secretary, Room H-135
(Annex B), 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580.
Comments containing confidential material must be filed in paper form,
must be clearly labeled ``Confidential,'' and must comply with
Commission Rule 4.9(c).\1\ The FTC is requesting that any comment filed
in paper form be sent by courier or overnight service, if possible,
because postal mail in the Washington area and at the Commission is
subject to delay due to heightened security precautions.
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\1\ The comment must be accompanied by an explicit request for
confidential treatment, including the factual and legal basis for
the request, and must identify the specific portions of the comment
to be withheld from the public record. The request will be granted
or denied by the Commission's General Counsel, consistent with
applicable law and the public interest. See Commission Rule 4.9(c),
16 CFR 4.9(c).
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Comments filed in electronic form should be submitted by following
the instructions on the web-based form at (https://
secure.commentworks.com/ftc-buildingandtextilesworkshop.) To ensure
that the Commission considers an electronic comment, you must file it
on that web-based form. You also may visit http://www.regulations.gov
to read this notice, and may file an electronic comment through that
website. The Commission will consider all comments that
www.regulations.gov forwards to it.
The FTC Act and other laws the Commission administers permit the
collection of public comments to consider and use in this proceeding as
appropriate. The Commission will consider all timely and responsive
public comments that it receives, whether filed in paper or electronic
form. Comments received will be available to the public on the FTC
website, to the extent practicable, at http://www.ftc.gov. As a matter
of discretion, the FTC makes every effort to remove home contact
information for individuals from the public comments it receives before
placing those comments on the FTC website. To read our policy on how we
handle the information you submit--including routine uses permitted by
the Privacy Act--please review the FTC's privacy policy, at (http://
www.ftc.gov/ftc/privacy.shtm.)
FOR FURTHER INFORMATION CONTACT: Robin Rosen Spector, Attorney, 202-
326-3740 or Janice Podoll Frankle, Attorney, 202-326-2022, Division of
Enforcement, Bureau of Consumer Protection, Federal Trade Commission.
SUPPLEMENTARY INFORMATION:
I. Introduction
FTC staff is planning to conduct a one-day workshop on July 15,
2008, addressing environmental advertising claims regarding building
and textiles. The workshop will explore environmental or ``green''
building and textile claims, consumer perception of those claims, and
substantiation issues. The workshop is one component of the
Commission's regulatory review of the Guides for the Use of
Environmental Marketing Claims (``Green Guides'' or ``Guides''), 16 CFR
Part 260, which the FTC announced on November 26, 2007.\2\
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\2\ The Federal Register Notice announcing this review is at 72
FR 66091 (Nov. 27, 2007), and can be found at (http://www.ftc.gov/
os/2007/11/P954501ggfrn.pdf). The Commission reviews all of its
rules and guides periodically. These reviews seek information about
the costs and benefits of the Commission's existing rules and guides
and their regulatory and economic impact. The information obtained
during these reviews assists the Commission in identifying rules and
guides that warrant modification or rescission.
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This Notice provides background on the Green Guides and the Green
Guides regulatory review; briefly discusses consumer protection issues
raised by green building and textile claims; and includes questions for
comment.
II. Background Information
This Federal Register Notice is part of the FTC's standard
regulatory review of the Green Guides. The following section provides
background information on the Green Guides and the Commission's Green
Guides regulatory review process.
A. The Green Guides
The Commission issued the Green Guides to help marketers avoid
making unfair or deceptive environmental
[[Page 32663]]
claims.\3\ Industry guides, such as these, are administrative
interpretations of the law. Therefore, they do not have the force and
effect of law and are not independently enforceable. The Commission can
take action under Section 5 of the FTC Act, however, if a business
makes environmental marketing claims inconsistent with the Guides. In
any such enforcement action, the Commission must prove that the act or
practice at issue is unfair or deceptive.
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\3\ The Commission issued the Green Guides in 1992 (57 FR
36363), and subsequently revised them in 1996 (61 FR 53311), and in
1998 (63 FR 24240). The current Green Guides are available at http:/
/www.ftc.gov/bcp/grnrule/guides980427.htm.
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The Green Guides outline general principles that apply to all
environmental marketing claims. The Guides provide that all marketers
making express or implied claims about the environmental attributes of
their product or service must have a reasonable basis for their claims
at the time they make them. They describe the basic elements necessary
to substantiate environmental marketing claims and present options for
qualifying specific claims to avoid deception.\4\ The provisions focus
on the way in which consumers understand environmental claims and not
necessarily the technical or scientific definition of various terms.
The Guides advise marketers to: make qualifications and disclosures
needed to prevent deception clearly so that consumers read and
understand them; not overstate an environmental attribute or benefit,
expressly or by implication; and present comparative claims in a manner
that makes the basis for the comparison sufficiently clear to avoid
consumer deception.
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\4\ The Guides do not, however, establish standards for
environmental performance or prescribe testing protocols. In the
realm of environmental advertising, a reasonable basis often
requires competent and reliable scientific evidence. Such evidence
includes tests, research, studies, or other evidence, based on the
expertise of professionals in the relevant area, that have been
conducted and evaluated in an objective manner by persons qualified
to do so, using procedures generally accepted in the profession to
yield accurate and reliable results.
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The Guides then specifically address general environmental benefit
claims, such as ``environmentally friendly,'' ``environmentally
preferable,'' ``Eco-safe,'' and more specific claims. The specific
claims the Guides address include: degradable, compostable, recyclable,
recycled content, source reduction, refillable, and ozone-safe/ozone-
friendly claims. For each, the Guides explain how reasonable consumers
are likely to interpret the claim and describe the basic elements
necessary to substantiate the claim. Additionally, they present options
for qualifying specific claims to avoid deception. These illustrative
examples provide ``safe harbors'' for marketers seeking certainty about
how to make environmental claims, but do not represent the only
permissible approaches to qualifying a claim. The illustrative examples
currently do not address textile or building products; thus, the
questions for comment, below, ask whether the Guides should be revised
to include examples regarding these products.
B. Green Guides Regulatory Review
On November 27, 2007, the FTC published a Federal Register Notice
commencing the decennial regulatory review of the FTC's Green
Guides.\5\ The Notice solicited public comments in response to
questions about the Guides' costs, benefits, and effectiveness and
posed claim-specific questions. The Notice announced that the FTC would
be hosting public meetings to facilitate dialogue on specific issues
relating to the Green Guides review. The Commission will review and
consider information gathered at these meetings, in addition to the
public comments, in formulating its final determination.
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\5\ 72 FR 66091 (Nov. 27, 2007).
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On January 8, 2008, the Commission conducted its first public
meeting relating to the Green Guides review, a workshop on ``Carbon
Offsets and Renewable Energy Certificates.''\6\ The Commission held its
second public meeting, a workshop on ``The Green Guides and
Packaging,'' on April 30, 2008.\7\ The meeting announced through this
Federal Register Notice, entitled ``Green Building and Textiles,'' will
be the third in the series. A public meeting addressing green claims
for building and textiles will enable participants and the Commission
to focus in-depth on two areas in which a wide range of green claims
are becoming more prevalent.
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\6\ The Commission's Federal Register Notice announcing its
first public workshop relating to carbon offsets and renewable
energy certificates is at 72 FR 66094 (Nov. 27, 2007).
\7\ The Commission's Federal Register Notice announcing its
second public workshop relating to green packaging claims is at 73
FR 11371 (Mar. 3, 2008).
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III. Green Claims for Building and Textiles and Consumer Protection
Issues
Since the Commission last revised the Green Guides in 1998, there
has been a significant increase in environmental claims concerning
textiles, building products, and construction. In the textile market,
we have seen a marked increase in advertisements for green textiles,
such as organic cotton, bamboo fiber clothing, and bedding materials.
In the building market, green claims are prevalent for a wide range of
building products including flooring, carpeting, paint, wallpaper,
lighting, insulation, and windows. In addition, builders are making
claims that the homes they build are green. These green building claims
often are based upon third-party certification programs, which have
grown substantially since the last revision of the Guides.
The nature of these textile and building product claims, consumer
understanding of the claims, and the marketers' substantiation of these
claims all raise consumer protection issues that we plan to explore at
the workshop. Below, we discuss the environmental marketing in the
textile and building products markets and the consumer protection
issues these claims raise.
A. Green Claims for Textile Products
The market for green textiles, both clothing and bedding products,
is burgeoning. A 2007 fashion white paper reported that consumer demand
for organic cotton clothing had grown by 300%, and the number of
clothing brands made with organic materials had increased by 150% over
a three year period.\8\ Claims in this market often relate to the
cultivation of a particular fiber. For example, some retailers tout
their products as more ``environmentally friendly'' because they are
made from ``organic cotton.''\9\ These green claims may appeal to
consumers in part because of data indicating that conventionally grown
cotton consumes approximately 25 percent of the insecticides and more
than 10 percent of the pesticides used in the world.\10\
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\8\ Diane von Furstenberg, Preface to Earth Pledge's Future
Fashion White Papers, at x (1st ed. 2007).
\9\ The U.S. Department of Agriculture through its National
Organic Program (``NOP'') has requirements for labeling products as
organic and containing organic ingredients. Organic cotton cannot be
marketed in the U.S. unless it meets the NOP standards.
\10\ http://www.aboutorganiccotton.org/woven-world.html.
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In addition to making environmental claims for textiles made from
organic cotton, marketers also are making eco-fabric and ``natural''
claims for products derived from such plants as hemp and bamboo.
Certain marketers claim that bamboo is one of the world's most
sustainable resources because unlike trees, which can take up to 25
years to mature, bamboo is ready to harvest after
[[Page 32664]]
four years.\11\ Also, marketers assert that compared with conventional
cotton plants, which require large amounts of pesticides and
fertilizers, bamboo cultivation requires neither pesticides nor
fertilizer.\12\
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\11\ Rich Delano, The Lowdown on Bamboo, in Earth Pledge's
Future Fashion White Papers at 160-161 (1st ed. 2007).
\12\ Id. at 161.
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Marketers' assertions about the environmental benefits of textile
products raise issues regarding consumer perception of, and
substantiation for, such claims. It is unclear how consumers perceive
claims regarding the environmental benefits of textile products, such
as organic cotton and bamboo, and the type of substantiation necessary
to support such claims. For example, consumers could believe that
claims that textiles made from bamboo are ``sustainable,''
``renewable,'' or ``natural''\13\ relate both to the material used--
bamboo--and the production process. Substantiating claims that textiles
made from bamboo are produced in an environmentally friendly manner may
pose challenges for marketers. Bamboo fibers, which are naturally
tough, are often softened through intense chemical treatment prior to
weaving. These chemical treatments may contribute to pollution. We plan
to explore these kinds of issues at the workshop.
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\13\ The Green Guides do not address these terms.
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B. Green Claims for Building Products and Buildings
The market for green homes and products is growing. A 2007 study
found that the market for green homes is expected to rise from $2
billion to $20 billion over five years.\14\ This study also found that
40% of homeowners choose green products to remodel their homes. In
response, today's market offers a myriad of green choices, including
paint, carpeting, wallpaper, flooring, cabinetry, lighting, windows,
insulation, appliances, as well as heating and cooling systems. This
growth provides benefits to consumers and businesses alike. However, it
also poses challenges to marketers seeking to highlight the
environmental attributes of their products.
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\14\ ``Ownership of `Green' Homes Expected to Increase Rapidly,
According to new Report from Mc-Graw Hill Construction,'' available
at (www.cnnmoney.com/news/newsfeeds/articles/prnewswire/
NYM15222102007-1.htm)
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Claims that building products are ``environmentally friendly''
raise potential consumer perception and substantiation issues. Sellers
and marketers are making green claims for a wide variety of products
and are making claims not presently addressed in the Green Guides,
including such terms as ``sustainable'' and ``renewable.'' In addition,
some marketers advise consumers to consider the life cycle of the
building products before purchasing, e.g., whether the products are
made of materials that are rapidly renewable or sustainable and whether
the materials can be reused or recycled when the item wears out. How
consumers interpret these claims and the substantiation necessary to
support them are issues we plan to discuss at the workshop.
In the green building market, many sellers use certification
programs to highlight the environmentally friendly aspects of homes and
buildings. There are several third-party certification programs that
establish criteria for green homes.\15\ Typically, the home must meet
certain thresholds, set forth in the certification program; however,
builders frequently may choose among numerous options to reach the
desired goal. For example, a green-certified home might generate less
waste during construction; be located near public transportation;
include appliances, windows, and insulation that reduce energy use; and
utilize high efficiency water fixtures. The criteria for, and meaning
of, these certifications raise a variety of consumer protection issues
that we plan to explore at the workshop.
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\15\ Three examples of these programs are: the Green Building
Council's Leadership in Energy and Environmental Design program
(``LEED''); the National Association of Homebuilders' Green Building
Standard; and Green Globes' Green Building Initiative. Builders also
can obtain an ``environmentally friendly'' certification from the
federal government through the Energy Star program, which certifies
homes based on energy use.
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IV. Questions for Discussion at the Workshop
The Commission invites written comments on any or all of the
following questions regarding environmental claims for textile and
building products. The Commission requests that responses to these
questions be as specific as possible, including a reference to the
question being answered, and reference to empirical data or other
evidence wherever available and appropriate.
A. Green Textile Claims
(1) How effective have the Guides' provisions regarding general
environmental claims been in preventing consumer deception and
providing business guidance with respect to environmental claims for
textile products? Please provide any evidence that supports your
answer.
(2) Has there been a change in consumer perception of environmental
claims for textiles since the Guides were revised?
(a) If so, please describe this change and provide any evidence
that supports your answer.
(b) Should the Guides be revised to address any such change? If so,
how?
(3) Are there environmental claims for textiles in the marketplace
that are misleading? If so, please describe these claims and provide
any evidence that supports your answer.
(4) To the extent not addressed in your previous answers, please
explain whether and how the Guides should be revised to prevent
consumer deception, provide business guidance, and/or reduce costs that
following the Guides may impose on businesses, particularly small
businesses, with respect to environmental claims for textiles. Please
provide any evidence that supports your answer.
B. Claims Regarding Organically Grown and Natural Textile Products
(1) Should the Guides be revised to include guidance regarding
environmental claims for organically grown textile products? If so,
why, and what guidance should be provided? If not, why not?
(a) What evidence supports making your proposed revision(s)? Please
provide this evidence.
(b) What evidence is available concerning consumer understanding of
the term ``organic'' when used to describe a textile product? Please
provide this evidence.
(c) What evidence constitutes a reasonable basis to support an
organic textile claim? Please provide this evidence.
(2) Should the Guides be revised to include guidance regarding
environmental claims for so-called ``natural'' textile products? If so,
why, and what guidance should be provided? If not, why not?
(a) What evidence supports making your proposed revision(s)? Please
provide this evidence.
(b) What evidence is available concerning consumer understanding of
the term ``natural'' when used to describe a textile product? Please
provide this evidence.
(c) What evidence constitutes a reasonable basis to support a
natural textile claim? Please provide this evidence.
(3) Are there claims regarding organically grown or natural
textiles in the marketplace that are misleading? If so, please describe
these claims and
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provide any evidence that supports your answer.
(4) To the extent not addressed in your previous answers, please
explain whether and how the Guides should be revised to prevent
consumer deception, provide business guidance, and/or reduce costs that
following the Guides may impose on businesses, particularly small
businesses, with respect to environmental claims for organically grown
or natural textiles. Please provide any evidence that supports your
answer.
C. Green Building Claims
(1) How effective have the Guides' provisions regarding general
environmental claims been in preventing consumer deception and
providing business guidance with respect to environmental claims for
building products and buildings? Please provide any evidence that
supports your answer.
(2) Has there been a change in consumer perception of environmental
claims for building products and buildings since the Guides were
revised?
(a) If so, please describe this change and provide any evidence
that supports your answer.
(b) Should the Guides be revised to address any such change? If so,
how?
(3) Are there environmental claims for building products and
buildings in the marketplace that are misleading? If so, please
describe these claims and provide any evidence that supports your
answer.
(4) To the extent not addressed in your previous answers, please
explain whether and how the Guides should be revised to prevent
consumer deception, provide business guidance, and/or reduce costs that
following the Guides may impose on businesses, particularly small
businesses, with respect to environmental claims for building products
and buildings. Please provide any evidence that supports your answer.
D. Third-Party Certifications and Seals
(1) How effective have the Guides' provisions regarding third-party
certifications and seals been in preventing consumer deception and
providing business guidance with respect to environmental claims for
textiles, building products, or buildings? Please provide any evidence
that supports your answer.
(2) Has there been a change in consumer perception claims using
third-party certifications and seals for textiles, building products,
or buildings since the Guides were revised?
(a) If so, please describe this change and provide any evidence
that supports your answer.
(b) Should the Guides be revised to address any such change? If so,
how?
(3) What criteria are third-party certifiers using to substantiate
claims made with third-party certification or seals for textiles,
building products, or buildings? Are those criteria appropriate? Please
provide any evidence that supports your answers.
(4) Are there environmental claims for textiles, building products,
or buildings using third-party certifications and seals in the
marketplace that are misleading? If so, please describe these claims
and provide any evidence that supports your answer.
(5) To the extent not addressed in your previous answers, please
explain whether and how the Guides should be revised to prevent
consumer deception, provide business guidance, and/or reduce costs that
following the Guides may impose on businesses, particularly small
businesses, with respect to environmental claims using third-party
certifications and seals for textiles, building products, and
buildings. Please provide any evidence that supports your answer.
E. Green Building and Textiles Claims Currently Not Addressed by the
Green Guides
(1) Should the Guides be revised to include guidance regarding
``sustainable'' or ``renewable'' claims for textiles and building
products? If so, why, and what guidance should be provided? If not, why
not?
(a) What evidence supports making your proposed revision(s)? Please
provide this evidence.
(b) What evidence is available concerning consumer understanding of
the terms ``sustainable'' or ``renewable'' with respect to textiles and
building products? Please provide this evidence.
(c) What evidence constitutes a reasonable basis to support a
``sustainable'' or ``renewable'' claim with respect to textiles and
building products? Please provide this evidence.
(2) Should the Guides be revised to include guidance regarding life
cycle claims for building products?
(a) If so, why, and what guidance should be provided? If not, why
not? Please provide any evidence that supports your answer.
(b) What evidence is available concerning consumer understanding of
life cycle claims with respect to building products? Please provide
this evidence.
(c) Is there an appropriate scientific methodology to evaluate life
cycle claims for building products? If so, please provide any evidence
that supports your answer.
(3) Are there other environmental claims concerning textiles or
building products not currently addressed by the Guides, and if so what
are they? Please provide any evidence that supports your answer.
(a) Should the Guides be revised to include guidance regarding
these claims? If so, why, and what guidance should be provided? If not,
why not?
(b) What evidence is available concerning consumer understanding of
these claim(s)? Please provide this evidence.
(c) What evidence constitutes a reasonable basis to support these
claim(s)? Please provide this evidence.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. E8-13014 Filed 6-9-08: 8:45 am]
BILLING CODE 6750-01-S