[Federal Register Volume 73, Number 112 (Tuesday, June 10, 2008)]
[Proposed Rules]
[Pages 32662-32665]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-13014]


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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 
[email protected]. 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

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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