As green advertising has exploded, the Federal Trade Commission (FTC) has been kept busy policing claims made by all types of advertisers, from consumer goods to building products. As with earlier ads promising that goods were “natural” or “organic,” “green” messages are everywhere, and not always honestly applied.
In homebuilding, it’s especially important to be forthright about green marketing since consumers are making a large, and often very emotional, investment in a physical, long-lived product. Points awarded to homes by green building rating programs lead to decisions about tangible things: heating systems, water systems, building frames, paint, lighting, landscaping, etc. Homebuyers will live with the choices resulting from these point systems for many years. If the products match their expectations, they should enjoy the results. If they have been misled to expect something more or different, they will likely be disappointed.
The FTC aims to protect consumers by prohibiting “unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce.” In a nutshell, the FTC considers an act or practice deceptive if it contains a representation or an omission of information that would be material to consumers – important to their decision to buy or use a product – and that would mislead consumers acting reasonably under the circumstances. These regulations apply to all types of companies, including building product manufacturers, as well as homebuilders.
The agency has published a set of Guides for the Use of Environmental Marketing Claims. The general principles include:
- Ensure claims are “sufficiently clear, prominent and understandable to prevent deception”
- Make clear the scope of the claim (for example, does it apply to the entire product, its packaging or just a portion of the product)
- Avoid express or implied overstatements of benefits
- State clearly the basis for comparisons (for example, a claim of “our homes are greener” should state what this is in relation to, such as “compared to a typical code-built home” and what the specific green features are, such as energy use and water use)
If in doubt about what types of claims are legitimate for your green homes, consult an attorney.
- Jayme Mattson
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