Green claims

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A Connecticut state court recently denied Exxon Mobile Corp.’s motion to strike the Connecticut attorney general’s lawsuit, allowing all the state’s consumer protection claims regarding Exxon’s alleged greenwashing to proceed.

The lawsuit, originally filed in 2020, alleges that Exxon violated the Connecticut Unfair Trade Practices Act (CUTPA) by misleading consumers about the climate impacts of its fossil fuel products and by overstating or misrepresenting its own sustainability efforts. Connecticut asserts that this has amounted to a long-running “systematic campaign of deception,” including alleged “greenwashing.”Continue Reading State Court Clears Connecticut’s Greenwashing Suit Against Exxon

This week, New York Attorney General Letitia James announced a $1.1 million settlement with JBS USA Food Company and JBS USA Food Company Holdings (JBS) over allegations that the meat producer misled consumers about its commitment to reduce its environmental impact. In February 2024, the AG filed suit, alleging that JBS’s consumer-facing statements that it would achieve “net zero” greenhouse gas emissions by 2040 were deceptive “greenwashing” because the company lacked a viable plan to achieve that goal.

As we reported in January, a New York Supreme Court judge dismissed the AG’s complaint (with leave to amend). Following the dismissal, the AG continued to investigate JBS’s net zero statements by issuing a subpoena and, with JBS, agreeing twice to extend the response deadlines. JBS ultimately provided eight sets of documents in response to the subpoena, after which the AG agreed to resolve the matter through an Assurance of Discontinuance in lieu of filing an amended complaint alleging violations of New York consumer protection statutes. Continue Reading New York AG Secures $1.1 Million Settlement with JBS Over Greenwashing and Net Zero Claims

In a decision underscoring the complexity and risks of making environmental marketing claims, the National Advertising Division (NAD) issued a decision in a challenge brought by the International Bottled Water Association (IBWA) against Boxed Water is Better® (Boxed Water). In the case, the NAD addressed a slew of claims touching on recyclability, renewability, life cycle impact comparisons, puffery, and more.

Recyclability and the Green Guides

NAD substantiated Boxed Water’s claims that its cartons are “recyclable” and “100% recyclable,” finding that the claims were consistent with the Federal Trade Commission’s (FTC) Green Guides, which permit such statements if a substantial majority (defined as 60% or more) of consumers have access to appropriate recycling facilities. Despite the multilayered structure of the cartons and industry challenges separating materials, NAD determined that the key threshold was access—not actual practice.Continue Reading Recyclable, Renewable, Regulated: NAD Pokes Holes in Boxed Water’s Green Pitch

On April 4, the California Department of Resources Recycling and Recovery (CalRecycle) published its final material characterization study report, starting the clock for compliance with Senate Bill No. 343 (SB 343), also known as the “Truth in Recycling” law. Under the law, marketers have 18 months from the date the study findings are published to comply with the requirements.

In 2021, California enacted SB 343, which prohibits the use of chasing arrows and any implied “recyclable” claims on products and packaging unless certain criteria are met. Specifically, SB 343 limits when a company can make a recyclable claim for a product or packaging to situations where:Continue Reading Compliance Countdown for California’s “Truth in Recycling” Law Begins

Venable’s Advertising and Marketing Group hosted its 11th Advertising Law Symposium at our offices in Washington, DC on March 20. The symposium brought together both business and legal professionals, including in-house counsel and marketing executives, to connect on trends, opportunities, and challenges in the industry. The sessions covered a breadth of interesting topics on the latest and greatest in advertising law.

If you couldn’t make it, here are some themes that ran through some of the day’s engaging conversations:Continue Reading Key Takeaways from Venable’s 11th Annual Advertising Law Symposium

In recent years, businesses have faced an onslaught of consumer class actions challenging sustainability initiatives, environmental commitments, and ethical sourcing language. In our view, these lawsuits frequently rely on dubious injury allegations because they challenge company-wide statements without properly connecting those statements to the value of any specific product purchased by plaintiff. After all, federal courts have limited jurisdiction, requiring a plaintiff to plausibly allege, with facts, an actual injury flowing from defendant’s conduct. Some courts are increasingly taking a harder look at pleadings to determine whether a plaintiff can plausibly allege that a company’s environmental or ethical visions, goals, or policies actually affect the value of the company’s product. In the most recent example, a federal court in Florida concluded that the answer to that question, at least with respect to Lululemon’s “Be Planet” campaign, was no.Continue Reading Pleading an Injury in Consumer Class Actions: Is It Enough to Just Say So?

Last month, a putative class action was filed against Procter & Gamble challenging various green advertising claims for its Charmin toilet paper. The complaint brought a variety of state law claims targeting P&G’s sustainability claims, including “Keep Forests as Forests,” and alleged that the claims were explicitly false and misleading.

According to the complaint, P&G’s “Keep Forests as Forests” campaign made three promises to consumers by leveraging the “Protect-Grow-Restore” logo:Continue Reading Lawsuit Alleging Greenwashing Filed against Procter & Gamble for Charmin Toilet Paper

Environmental claims are a powerful tool for companies to demonstrate their commitment to sustainability and connect with values-driven consumers. However, these claims are facing increased legal scrutiny, as governments and regulators aim to close the gap between companies’ climate pledges and their corporate actions.

The recent case of People of the State of New York v. JBS highlights the growing risks associated with sustainability and environmental advertising. Filed after the National Advertising Review Board (NARB) recommended that JBS discontinue certain sustainability claims that formed the basis of the suit, this case underscores how environmental claims can invite challenges from multiple fronts, including federal and state regulators, self-regulatory entities, competitors, and consumers, and how courts are wrestling with where the lines are for such claims.

During a hearing on January 10, 2025, the Supreme Court of New York dismissed the New York attorney general’s lawsuit against JBS USA Food Company and JBS USA Food Company Holdings (JBS). But the court is allowing the AG to file an amended complaint by April 10—90 days from the hearing—to address deficiencies in the complaint. If the AG does not file an amended complaint by that deadline, the court will dismiss the case with prejudice.Continue Reading New York Court Dismisses Suit Against JBS but Allows Attorney General to File Amended Complaint

Join us as we spotlight select chapters of Venable’s popular Advertising Law Tool Kit, which helps marketing teams navigate the legal risk of campaigns and promotions. Click here to download the entire Tool Kit, and tune in to the Ad Law Tool Kit Show podcast, to hear the authors of this chapter dive deeper into the issue of green claims in this week’s episode.

Protecting the planet against climate change is a social movement—and big business. The Federal Trade Commission (FTC) has issued detailed and specific guidance for marketers about how to substantiate so-called green claims. Unsubstantiated green claims have been, and will continue to be, an enforcement priority. The FTC has sought comments on updates to the Green Guides, and new Guides are likely to be issued in 2024. State laws have also been passed that regulate specific “green” claims, which regulators have begun aggressively enforcing. Furthermore, plaintiffs’ class action lawyers are focusing on green claims across a variety of industries, from transportation to cosmetics.Continue Reading Green Claims: An Excerpt from the Advertising Law Tool Kit

Episode 4 of Venable’s Ad Law Tool Kit Show, Season 2,is now available. Listen to “Green Claims” here, or search for it in your favorite podcast player.

Protecting the environment and practicing social responsibility not only benefit the planet, but also provide a compelling value proposition. The Federal Trade Commission (FTC) has issued detailed guidance for marketers about how to substantiate green claims, and states are increasingly passing laws governing environmental advertising.

In this episode, Venable partner Claudia Lewis discusses how marketers can promote the environmentally conscious aspects of their products while avoiding so-called greenwashing.Continue Reading Listen to Venable’s Ad Law Tool Kit Show Podcast – “Green Claims”