200Module 6 of 8
Green Claims & Advertising Law
FTC Green Guides, UK CMA, EU rules. How to substantiate and word claims without misleading.
7 minutes
claimsLesson Video
Green Claims & Advertising Law
Module Content
1) Executive Summary
The 7 most important insights
- Generic “green” claims are now high‑risk (EU/UK) and risky (US) unless tightly qualified. The EU added new blacklist bans for generic environmental claims unless backed by recognised excellent performance (e.g., EU Ecolabel/EMAS), sustainability labels not based on a certification scheme, and offset‑based “carbon neutral” product claims. Transpose by 27 Mar 2026; apply from 27 Sep 2026. [EUR‑Lex]
- US recyclability hinges on access. Unqualified “recyclable” requires a substantial majority (≥60%) of consumers or communities to have access; otherwise, qualify and explain the limitation. [FTC Green Guides]
- UK enforcement just got teeth. The DMCC Act 2024 empowers the CMA to impose direct fines up to 10% of global turnover for consumer‑law breaches, including misleading green claims, from 6 Apr 2025. [Legislation.gov.uk/GOV.UK]
- “Carbon neutral / net zero” claims require nearby, specific basis statements. State reductions vs offsets, timeframes, methodology, scope, and verification; ensure prominent proximity per ASA/CAP. [ASA/CAP]
- California SB 343 will set a de facto US floor for recycling labels. CalRecycle’s Final Findings clock began 4 Apr 2025; ~18‑month compliance runway to ~4 Oct 2026 for aligning claims/icons to what is commonly collected/sorted/sold in CA by material type & form. [CalRecycle]
- Certifications and seals must mean something. Do not imply endorsement where none exists; in the EU it is per se unfair to display sustainability labels not based on a certification scheme or established by a public authority. [Empowering Consumers Directive]
- Substantiation = competent & reliable evidence aligned to the specific claim. For offsets, quantify robustly, avoid double‑counting, and disclose if reductions occur ≥2 years in the future. [FTC]
Immediate actions for design & marketing teams
- Retire generic claims (“eco‑friendly”, “green”, “sustainable”) unless tied to recognised excellent performance and the basis is stated prominently (EU/UK) or tightly qualified (US).
- Re‑paper “recyclable” claims with region‑specific access/system evidence; qualify if US access <60%; reflect local collection/sortation limits for EU/UK; plan SB‑343 alignment for CA.
- Rebuild carbon‑neutral copy to state scope, baseline, % reduction vs offsets, offset type/standard, timing, verification; in the EU, avoid offset‑based neutrality on product labels.
Key risks & 12–24 month watchlist
- EU Green Claims Directive (GCD) in limbo. Treat Directive (EU) 2024/825 as the binding baseline; monitor any GCD revival/alternatives.
- UK CMA direct enforcement ramp‑up (DMCC) on neutrality, plastic‑free, LCA claims.
- CA SB 343 becomes a de facto national standard for packs sold into CA; expect relabels through 2026.
2) Definitions & Concepts
Glossary (plain English)
- Generic environmental claim: Broad, unqualified claim (e.g., “green”, “eco‑friendly”). EU bans many unless recognised excellence is shown; UK/US generally require tight qualifiers.
- Recognised excellent environmental performance: Performance evidenced by schemes like EU Ecolabel or EMAS relevant to the claim (EU context).
- Substantiation: Competent, reliable evidence that matches the exact claim (method, scope, dates, third‑party review where relevant).
- Access (recycling): Share of consumers/communities with collection & processing access; ≥60% enables unqualified “recyclable” in US.
- Offset‑based claims: Claims relying on carbon credits; EU bans product‑level neutrality based on offsets; FTC requires timing disclosures ≥2 years.
- Certification/seal: Logos implying third‑party approval; policed by FTC/CMA; EU per se unfair if no certification scheme/public authority basis.
Concept map (bullet diagram)
- Claims → (General | Specific) → General high‑risk unless recognised excellence; Specific (recyclable/compostable/carbon) → substantiation (tests, access, scope, dates).
- Presentation → clear & conspicuous/nearby qualifiers (FTC; ASA proximity).
- Labels → based on certification scheme (EU) | not misleading (FTC/CMA).
3) Standards, Regulations, and Governance
At‑a‑glance (primary instruments)
- US: FTC Green Guides (16 CFR Part 260) inc. General Environmental Benefit, Carbon Offsets, Recyclable, Renewable. Enforced under FTC Act §5.
- UK: CMA Green Claims Code; ASA/CAP Code Section 11 + carbon‑neutral guidance; DMCC Act 2024 enables direct fines up to 10% turnover.
- EU: UCPD as amended by Directive (EU) 2024/825 (Empowering Consumers) — black‑listed greenwashing practices; transpose by 27 Mar 2026; apply 27 Sep 2026.
- Voluntary supports: ISO 14021 (Type II self‑declared claims); EU Ecolabel Reg. 66/2010.
United States (FTC Green Guides)
- General environmental benefit (§260.4): Unqualified “green/sustainable” likely deceptive; specify attribute and context.
- Recyclable (§260.12): Unqualified only if ≥60% access; otherwise qualify (e.g., “may not be recyclable in your area”).
- Carbon offsets (§260.5): Quantify, avoid double‑counting; disclose if benefit occurs ≥2 years in future; no credit for reductions required by law.
- Renewable energy/materials (§§260.15–.16): Unqualified claims only if all/virtually all; else state percentage and source.
- California SB 343: Align labels/icons to CalRecycle Final Findings (material type & form) by ~Oct 2026.
United Kingdom (CMA + ASA/CAP + DMCC)
- CMA Green Claims Code: Six principles — truthful, clear, no omissions, fair comparisons, lifecycle considered, substantiated.
- ASA/CAP Section 11 + guidance: Basis must be clear; carbon‑neutral/net‑zero claims require proximity and strategy for future goals.
- DMCC Act 2024: CMA direct fines up to 10% global turnover from 6 Apr 2025.
European Union (UCPD + EmpCo 2024/825)
- Black‑listed practices (examples): sustainability label without certification scheme/public authority; generic environmental claims without recognised excellent performance; product‑level neutrality/reduction/positive claims based on offsets; whole‑product/company claims when only one aspect qualifies.
- Timelines: transpose by 27 Mar 2026; apply from 27 Sep 2026.
- GCD status: Negotiations paused June 2025; plan on EmpCo compliance regardless.
Topic | US (FTC) | UK (CMA/ASA/CAP + DMCC) | EU (UCPD + EmpCo) |
---|---|---|---|
Generic “green/eco‑friendly” | Discouraged unless specific & qualified | Likely misleading unless basis clear & nearby | Often banned unless recognised excellence |
“Recyclable” | Unqualified only if ≥60% access | Accurate to local systems; clear limits | Must not overstate; subject to EmpCo constraints |
Carbon neutral | Allowable with robust evidence + disclosures | Basis clear & proximate; strategies verifiable | Product‑level offset‑based neutrality banned |
Labels/Seals | No implied approval unless true | Policed by CAP/ASA | Per se unfair if no certification scheme/public authority |
Enforcement risk | FTC + state AGs; CA SB 343 labels by 2026 | CMA direct fines up to 10% (from 2025) | National authorities enforce EmpCo from Sep 2026 |
4) Evidence Base & Benchmarks
Most credible anchors
- FTC Green Guides (2012) — includes ≥60% access rule; offsets; renewable claims.
- CMA Green Claims Code (2021) — six principles; enforcement context.
- ASA/CAP guidance (2023–) — proximity and specificity for neutrality/net zero.
- Directive (EU) 2024/825 (EmpCo) — binding EU baseline on greenwashing.
- ISO 14021 — Type II self‑declared claims.
- CA SB 343 Final Findings — material type & form in CA.
Benchmarks & thresholds
- US unqualified “recyclable”: ≥60% access.
- Offset timing disclosure: disclose if ≥2 years to benefit.
- EU recognised excellence: EU Ecolabel/EMAS (or equivalent) if making broad claims.
Where views conflict
EU bans product‑level neutrality based on offsets; UK/US permit with stringent qualifiers. Build one global template, then switch off offset‑based neutrality for EU product labels.
5) Design & Production Implications
Rules of thumb (with sources)
- Avoid standalone “eco‑friendly/sustainable/green.” Use specific attribute + scope + limit (e.g., “Bottle is recyclable where facilities exist; label & cap may not be” / “Pack uses 35% PCR in the bottle only”).
- Put qualifiers next to the claim (same panel, similar size/contrast). FTC “clear & conspicuous”; ASA/CAP proximity.
- Map end‑of‑life by component (bottle, cap, label, liner, pump, film). Avoid whole‑pack claims if sub‑components fail.
- Carbon claims: separate reductions vs offsets; state scopes, baseline year, % reduced, credit standard; avoid offset‑based neutrality on EU product labels.
Designer tip: Prefer “Bottle widely recyclable (US FTC ≥60% access); cap/label may not be” over “100% recyclable.” Add locale routing via QR to detailed instructions.
Material/format trade‑offs (sketch)
Rigid PET bottle + PP cap + paper PSL: bottle widely recyclable in many locales; cap generally acceptable if captured; paper PSL + aggressive adhesive can hinder recycling → check APR/OPRL rules at spec time.
Manufacturability flags
- Qualification text must survive all print runs and appear near the claim; encode resize logic in dielines.
- Multi‑market packs: pre‑plan switchable layers (EU vs non‑EU carbon copy; CA‑compliant recycling icons).
6) Sustainability & Compliance Considerations
Recyclability labels (voluntary frameworks)
- US/Canada: How2Recycle — uses ≥60% access for “Widely Recyclable”; operationalises FTC thresholds.
- UK: OPRL — Recycle / Do Not Recycle labels aligned to RAM/EPR.
EPR & documentation
Maintain a substantiation dossier: tests, access studies, LCA sections used, label decisions, change‑control logs per SKU/market. Expect to show your work to CMA/FTC.
Claims risk — words to avoid and safer alternatives
- Avoid: “eco‑friendly,” “environmentally safe,” “carbon neutral” (EU product‑level), “plastic‑free” when any plastic present, “100% recyclable” when subparts fail.
- Prefer: “Bottle recyclable in curbside programs covering ≥60% of US consumers; cap/label may not be” (US). “OPRL: Recycle” (UK). “Company on track to reduce Scope 1+2 by 46% vs 2019; remaining emissions offset via [standard], verified by [body] (no product neutrality claim in EU).”
Compliance watch: From 27 Sep 2026, EU bans product‑level “neutral/reduced/positive” based on offsets. Remove those phrases from EU packs and EU‑targeted ads by late‑2026 artwork freeze.
7) Workflow & Tooling
Pre‑claim substantiation checklist
- Claim wording + scope (product/part/company/campaign).
- Evidence type (test, LCA section, access study, certification).
- Date/vintage; lab/method; market coverage.
- Access (US: ≥60% unqualified?) & local scheme fit (OPRL/How2Recycle).
- Qualifier text proximity/legibility (FTC clear & conspicuous; ASA proximity).
- EU EmpCo triggers (generic claim? certification scheme? offset‑based neutrality?).
Artwork pre‑press checklist
- Qualifiers on same panel as headline claim; minimum x‑height near headline cap height.
- Market‑switch layers: EU carbon wording OFF; CA SB‑343 icon set ON (2026+).
Decision trees
A) “Recyclable” claim
- US access ≥60%? If yes → unqualified possible; if no → qualify (“may not be recyclable in your area”).
- Any component prevents recycling? If yes → state component‑level limits.
- Targeting CA after Oct 2026? Align to SB 343 Final Findings for material type & form.
- UK? Use OPRL determination for label set.
B) “Carbon neutral / net zero”
- EU pack? Do not use offset‑based neutrality claims.
- Non‑EU: show reductions vs offsets (% split), scopes, baseline, standard, verification; disclose if benefits occur ≥2 years out.
Calculator blueprints (to‑be)
- US recyclability access gate: distribution × access studies → % access + claim eligibility.
- Carbon claim composer: inputs (Scopes, baseline, % reduction, offsets standard & vintage, verification, time‑to‑benefit) → region‑specific copy (EU/UK/US toggles).
Template specs
- Substantiation Dossier: SKU, claim, regions, evidence IDs, method, dates, verifier, renewal cadence.
- Artwork naming/versioning:
SKU_Region_Lang_ClaimShort_YYYYMMDD_vX
.
8) Category‑Specific Guidance (Beauty, Food, Beverage)
Beauty: Avoid “non‑toxic,” “chemical‑free.” Prefer specific absence claims only when functionally true and not misleading about risk (align to FTC §260.9 “free‑of” logic).
Food & Beverage: “Compostable” requires clear conditions (industrial vs home), timeframe, and standards; avoid compostable icons where collection is limited (use OPRL/How2Recycle variants where applicable).
9) Case Studies (Problem → Approach → Result)
1) “100% recyclable bottle” (US/CA/UK)
Problem: Whole‑pack claim; label adhesive hindered PET; <60% access in parts of US.
Approach: Component review; US access verified (≥60% → bottle unqualified; cap/label qualified); CA SB‑343 mapping for Oct 2026; UK OPRL split by component.
Result: Revised copy: “Bottle recyclable in many curbside programs; label & cap may not be. See QR for local info.”
2) “Carbon neutral product” (EU market)
Problem: Product‑level neutrality based on offsets.
Approach: EmpCo review → offset‑based neutrality prohibited from Sep 2026; moved claim off‑pack to corporate page; on‑pack shifted to specific reductions.
Result: EU artwork compliant; risk reduced.
3) “Plastic‑free” on paper flexible
Problem: Heat‑seal layer contained polymer.
Approach: Material audit; replaced headline with function‑based attribute; disposal per OPRL outcome.
Result: Claim now specific and substantiated.
10) Common Pitfalls & Red Flags
- Headline claims with remote footnotes → add nearby, legible qualifiers.
- Whole‑product claims when only one component qualifies → state the part and the limit.
- Offset‑only neutrality narratives → EU: move off pack; elsewhere: show % reductions vs offsets and timing.
- Implied certification → do not use badges/marks without rights; explain credentials.
- Missing California SB‑343 plan for 2026 labels → build CA‑ready icon sets now.
11) References
Appendix — Ready‑to‑use wording patterns
Recyclable (US national pack)
Bottle recyclable in curbside programs covering a substantial majority (≥60%) of US households. Cap & label may not be recyclable in all areas. Scan for local guidance.
Recyclable (CA‑ready, 2026+)
Recyclability claims in California are aligned to CalRecycle’s SB 343 Final Findings for material type & form. See QR for CA‑specific guidance.
Carbon reductions (EU pack)
−38% Scope 2 emissions vs 2020 (market‑based), verified by [body]. No product‑level neutrality claim is made.
Carbon neutral (non‑EU, ad/digital)
Product carbon footprint (cradle‑to‑gate) 1.8 kg CO₂e; −32% vs 2019. Residual emissions offset with [program/standard]; offset benefits delivered in 2026–2028. Full method & verification: [short link].