The Federal Trade Commission (FTC) is seeking comments on a proposed rule that would tighten the requirements for environment-friendly labeling of consumer products; however, the proposed rule could have implications for associations that certify the environmental standards of products.  

The current proposed rule is an update of the FTC “green guide” rules for environmental marketing and aims to “help marketers avoid making unfair or deceptive environmental marketing claims”.  The rule deems the use of all organizational logos (including an association logo or seal of approval) as an endorsement of the product’s environmental claim, and language must be included explaining the exact benefit of the certification as well as any existing relationship between the association and manufacturer.  Failing to do so would be deemed as deceptive and misleading.  

The proposed modification gives two examples that relate to associations. The first example concerns a product certified by an association, but because the advertisement does not disclose that the product manufacturer is a dues paying member of the association, the advertisement is deemed to be a deceptive practice.  The second example concerns products certified by an organization whose name may not convey the fact that it is an industry trade association.  To avoid being deceptive, the certification must include an explanation that the certifying organization is a trade organization, not an independent body.    

Standard setting is one of the primary benefits provided by associations, and parts of the proposed rules could create the impression that these standards have somehow been compromised.  ASAE is communicating to the FTC about possible negative effects the proposed rules could have on legitimate and long standing certifications administered by associations.