Greenwashing and Consumer Fraud

Our team offers comprehensive legal support to clients misled by consumer fraud and greenwashing practices.

Consumer fraud involves deceptive practices, misrepresentations or omissions of material facts intended to mislead consumers in the sale or advertisement of products or services. Greenwashing, a specific type of consumer fraud, occurs when companies falsely or misleadingly advertise products or services as environmentally friendly to exploit growing consumer demand for these “green” products or services.

Consumer Fraud

The New Jersey Consumer Fraud Act (CFA) protects consumers from deceptive practices. Under the CFA, plaintiffs must demonstrate:

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. See New Jersey Consumer Fraud Act (CFA), N.J.S.A. §§ 56:8-1 to -20.

Class Action Litigation in New Jersey

A class action is a type of lawsuit that permits one or more individuals to act as plaintiffs and represent the interests of a larger group of people with similar claims. In New Jersey, Rule 4:32-1 governs class action certification and follows the general requirements of numerosity, commonality, typicality, and adequacy of representation. The proposed class action must also satisfy one of three alternative requirements of 4:43-1(b).

New Jersey is plaintiff-friendly and its class action rule is construed liberally. Generally, class certification is granted unless a clear showing is made that the certification is inappropriate or improper. See e.g., Iliadis v. Wal-Mart Stores, Inc., 191 N.J. 88; Delgozzo v. Kenny 266 N.J. Super. 169 (stating that Rule 4:32-1 must be liberally construed and that a class action is the favored means of adjudicating numerous claims involving common nucleus of facts, for which each individual’s recovery will be small).

When a case is filed as a class action, there is a possibility of removal to federal court under the Class Action Fairness Act (“CAFA”), which allows for federal jurisdiction over class actions if (i) the amount in controversy exceeds $5 million, (ii) there are over 100 class members, and (iii) minimal diversity exists. See 28 U.S.C.S. § 1441. If a case is removed to federal court, class action practice proceeds under federal rules. Many recent greenwashing claims have been adjudicated in federal courts, reflecting the national scope of these issues.

At Davis Environmental, we are equipped to represent clients in class action litigation to address harm caused by false and misleading practices, including greenwashing.

How Greenwashing Manifests

Greenwashing occurs when an entity overstates or fabricates a product’s environmental benefits. Common examples include statements about sustainability, recyclability, carbon neutrality, chemical specificity, and third-party certifications that are inaccurate or unsubstantiated. However, greenwashing can take many forms beyond these well-known examples:

• A company may advertise products as recyclable even when they are not capable of being recycled.
• Products or services labeled as “sustainable,” “green,” “natural,” or “organic” often fail to meet the standards implied by these terms.
• Companies may assert self-created or first-party statements, making environmental claims without independent third-party certification. Meanwhile, when third-party certifications do exist, they themselves can be deceptive, misrepresenting the true environmental or social impact.
• A company may be engaging in “climate-washing” by overstating carbon-neutral or net-zero emission pledges.

How Consumers Identify Greenwashing

• Investigative Reports & Media Scrutiny: NGOs, watchdog organizations and journalists investigate false environmental claims.
• Public Campaigns and Social Media: Activists, influencers and bloggers raise awareness using platforms like Twitter and TikTok.
• Lack of Transparency in Certifications: Consumers look for independent audits or reviews to verify third-party certification claims.
• Personal Experience: Consumers can identify greenwashing through personal experience when products fail to meet advertised claims. For example, items labeled as “sustainably sourced,” “clean,” or “zero-carbon” may not align with these promises, or non-recyclable products may be falsely marketed as recyclable.
• Health Concerns: The presence of harmful substances such as microplastics or phthalates in “natural” products signals potential greenwashing.

About Our Practice

At Davis Environmental, we bring over two decades of specialized expertise in environmental law, making it our core focus and passion. Our team of dedicated attorneys combines extensive legal knowledge with scientific backgrounds and academic excellence, uniquely equipping us to address intricate environmental challenges.

Using class action litigation, we can represent consumers and communities against large corporations. We are committed to a science-based, professional approach to environmental law, applying rigorous analysis to tackle issues ranging from contamination to deceptive marketing practices. Our niche expertise enables us to navigate complex greenwashing claims with precision, providing clients with comprehensive legal support.