Understanding Greenwashing
Introduction
Many consumers prioritize products and services that align with their environmental values, and they are often willing to pay a premium for such items. Growing awareness of environmental and health concerns has led to an increase in advertising and product labeling disclosures intended to influence purchasing decisions. However, not all claims are accurate or defensible. Some are incomplete, misleading, or even outright false.
What is Greenwashing?
Greenwashing refers to the practice of making false or misleading claims about the environmental benefits of a product, service, or practice. Through greenwashing, companies can deceive consumers into believing they are making sustainable choices, by using inaccurate labels and vague certifications. The proliferation of standards, labels, and certifications can further complicate the authenticity of claims.
Examples of Greenwashing
Greenwashing can manifest in various ways as companies attempt to attract environmentally conscious consumers with exaggerated environmental claims.
Below are examples of greenwashing lawsuits, that show how consumers can litigate against companies for alleged false environmental attributes in advertising. This list is non-exhaustive, as greenwashing can take on diverse forms across industries.
1. Recycling Claims: Companies may claim their plastic bottles are recyclable, even when they are not capable of being recycled. The Coca-Cola Company faced a class action lawsuit for marketing its single-use plastic as “recyclable”. See Complaint, Earth Island Inst. v. The Coca-Cola Co., No. 2021 CA 001846 B (D.C. Super. Ct. June 4, 2021). See Earth Island Inst. v. Coca-Cola Co., No. 22-CV-0895, slip op. (D.C. Aug. 29, 2024) (Opinion).
2. Sustainability Labels: Products labeled as “sustainable,” “green,” “natural,” or “organic” may not meet the criteria implied by these terms. For instance, supermarket chain ALDI was accused of greenwashing because its “sustainable” salmon was allegedly being sourced unsustainably. See Order, GMO Free USA v. Aldi Inc., No. 2021 CA 001694 B (D.C. Super. Ct. Feb. 16, 2022).
3. Third-Party Certifications: Some companies create their own “first-party” certifications or use “third-party” certifications that may not be traceable and may be misleading. For example, Nestlé faced a lawsuit by consumers alleging deceptively labeling cocoa products as “sustainably sourced” and “UTZ certified” while allegedly using child labor in the supply chain. See Complaint, Walker v. Nestlé USA, Inc., No. 19-cv-00723 (S.D.N.Y. Apr. 19, 2019). See Order, Walker v. Nestlé USA, Inc., No. 19-cv-00723 (S.D.N.Y. Mar. 28, 2022).
4. Climate-washing Claims: Companies may assert their commitment to fighting climate change by claiming they are “carbon neutral,” “climate neutral,” “net-zero,” or “zero-carbon” and these claims may be false and misleading. For instance, Danone was sued by consumers who claimed to be deceived when purchasing its Evian Natural Spring Water which was labeled as “carbon neutral”. See Complaint, Dorris v. Danone Waters of Am., No. 22 Civ. 8717, 2024 WL 112843 (S.D.N.Y. Oct. 13, 2022). See Order, Dorris v. Danone Waters of Am., No. 22 Civ. 8717, 2024 WL 112843 (S.D.N.Y. Jan. 1, 2024).
Consumer Protection Laws
When consumers are misled by false statements, they may be able to bring class action lawsuits for fraud and deceptive advertising. For example, in New Jersey, the Consumer Fraud Act (CFA) protects against deceptive commercial practices. To prevail under the CFA, plaintiffs must prove:
1. False and misleading representations or omissions.
2. An ascertainable loss suffered by the plaintiff.
3. A causal relationship between the unlawful conduct and the loss.
The CFA allows for both equitable and legal remedies, including treble damages, reasonable attorneys’ fees, and costs of the suit.
Conclusion
As companies increasingly highlight “environmental” attributes to attract consumers, they must ensure their claims are accurate and not misleading. Consumers should remain vigilant and if they encounter greenwashing, they may have claims against misrepresenting companies. Producers, in turn, must be cautious to avoid misrepresentations. By understanding their legal protections, consumers can make more informed choices, seek damages, and may hold companies accountable for false environmental claims.
Remain informed, protect your rights as a consumer, and consult with legal professionals if you believe you’ve been impacted by greenwashing practices. Our team may be able to help.