Greenwashing the flock

It's not easy being green. We've all heard the cringeworthy adage. But despite Kermit's proclamation, it might not be quite as hard as we thought.

Are we being fleeced by claims of 'green' products that are anything but?

Greenwashing green products at SEMA

It's not easy being green. We've all heard the cringeworthy adage. But despite Kermit's proclamation, it might not be quite as hard as we thought.

A gamut of products, from those that reduce emissions or improve fuel economy to others simply boxed in recycled packaging have been seen wearing the stamp of "green." But is this often loosely used term blinding us to a product's true colors?

The notion of "greenwashing" — enhancing or exaggerating the green attributes of a product — has been gaining media, consumer and reseller attention as the desire to become more environmentally aware has begun impacting customer spending and likewise, company profits.

Advertising efforts that traditionally focus on a product's performance results have begun shifting to environmental impacts and fuel efficiency, says Jim McFarland, technical consultant with the Specialty Equipment Manufacturers' Association (SEMA).

"That is going on as we speak. It is happening right now. Manufacturers are looking at products to say, 'What can now be done to improve fuel economy?'" he says.

And while SEMA encourages refocused efforts to retool existing products to be more efficient and effective at the benefit of the environment, they also urge the need to ensure that products are marketed with accurate and truthful information presented in a way that does not dupe the consumer.

"In reality, very few companies have the technology needed to manufacture products that are truly environmentally safe. It takes a serious investment in research and testing to create something that's green," says Jeff Marshall, president of Green Earth Technologies, a manufacturer of ecological and biodegradable products including automotive motor and engine oils, fuel additives, cleaners and solvents.

"Those with the proper resources might market the fact they've reduced the amount of packaging they use, or sprinkle their labels with green buzz words, but in the end, those things don't qualify a product as green," he adds.

One thing resellers are encouraged to look for and demand is the use of standardized and government-approved testing methods to support any green claims.

"It is difficult to police green claims because there is not one entity with enforceable policing power in the industry," Marshall says.

However, National Safety Foundation approval or legitimate third party certification from the United States Department of Agriculture or the Federal Drug Administration are helpful, he says. "Also look for the Material Safety Data Sheets Hazard Rating 'diamond' and the American Society for Testing and Materials Biodegradability Rankings when determining how green a product is. If something is harmful or fatal if swallowed, then there is a good chance that it's not safe for the environment."

The Environmental Protection Agency (EPA) and the Federal Trade Commission (FTC) have also deemed certain testing standards to be "legitimate," — such as those created by the Society of Automotive Engineers — in backing claims.

Although these testing methods can be very expensive, with the EPA-recommended procedures running about $27,000 per product, McFarland says, they enable the EPA to validate that a product has been tested and is proven effective through standardized methods. And it helps ensure the FTC that all consumers — from resellers to those buying in retail shops — are not misled.

The FTC is unable to monitor and check the accuracy of every green or environmentally friendly product claim out there, and although McFarland deems current regulations — if followed — to be mostly adequate and effective in ensuring manufacturer honesty, Marshall argues their ineffectiveness.

"The FTC and EPA guidelines are too loosely regulated, allowing manufacturers to make unsubstantiated claims about their products. These exaggerations give manufacturers and undeserved leg-up on those companies who are taking the time, and making the necessary investments, to prove the science behind their products truly makes them green," he says. "More stringent regulations will protect consumers from those who are simply greenwashing their brand."

Regulation becomes especially important when the green label on a product garners so much attention. "It is a wonderful sales tool," says David Stuckey, president of Auto Parts Warehouse, Inc., in Hemingway, S.C., who has seen more and more green products coming through his business over the past year. And when two similar products are on the shelf, but one has less of a negative environmental impact, consumers will lean in favor of being eco-friendly, he says.

But how big of a problem is greenwashing really?

A recent study of environmental claims in the North American consumer market, conducted by TerraChoice Environmental Marketing Inc. late last year, revealed that of the just more 1,000 products reviewed, all but one made green claims that could either mislead consumers or are just false.

In the aftermarket, products including exterior cleaners, diagnostic tools, engine and emissions parts, motor oil and air filters, among many others, are boasting green benefits. Though an effective product sales tool, greenwashing has many negative consequences, according to TerraChoice research. If resellers, retailers or consumers are misled into buying products that lack the environmental benefits advertised, the positive effects of the purchase are lost. Also, illegitimate advertising claims may lead buyers away from purchasing products with genuine environmental benefits and make them cynical to all green claims across the board.

"I think it is a big issue for the aftermarket and many other industries as well. It is clear that the environment is a major issue to many consumers and that is translating into much more environmental-based marketing," says Aaron Lowe, vice president of government affairs for the Automotive Aftermarket Industry Association.

"However, companies that cannot substantiate their environmental marketing claims, or if their claims are judged as misleading, then they will be vulnerable to action by the Federal Trade Commission or another state consumer agency. The same is true for claims by companies regarding fuel economy. If a company makes a claim that use will help improve fuel economy then they need to be able to substantiate that claim," he says.

Industry manufacturers have not remained immune to the idea of greenwashing, as some businesses have been investigated, emphasizing the need for reseller caution when looking to stock and sell these products. "There have been several instances in the past where aftermarket companies have come under the scrutiny of the FTC for fuel economy or environmental claims that had not been properly substantiated," Lowe says. "The bottom line is that it's best to do your homework before you go to market to avoid trouble later."

And the issue is only just beginning to grow, McFarland says. "I don't think in the past this has been as big of a problem as it may be in the future. We are seeing an increase in the number of aftermarket products that are being offered," he says. "The sheer increase in participation in the aftermarket could be problematic. We need to get the word out on just exactly what the guidelines are."

But as consumer education continues to grow, so will expectations demanded for so-called "green products," Marshall says. Companies that are truly green need to push back against greenwashing by making "a product that really works and lives up to the advertised benefits," he says. "It's easy to sell a product on hype, but as the green marketplace gets smarter about what they're buying, smart marketing alone won't be able to compete in the race for shelf space."

The six sins of greenwashing™

A study of environmental claims in North American consumer markets, conducted by TerraChoice Environmental Marketing, Inc., revealed that while green product marketing claims are on the rise, the truthfulness behind these statements may not be. Through the survey results, the firm identified what they deemed the most common ways companies "greenwash" to appeal to customers and their wallets.

The hidden trade off

A product is deemed green because of a single environmentally friendly aspect — such as the use of recycled packaging — while other, often more important, environmental impacts are overlooked, making a product appear more green than it is in actuality.

No proof

Product claims cannot be verified by easily accessible studies, information or the support of a recognized third party, like the Federal Trade Commission.

Vagueness

Claims are so loosely defined or broad that their actual meaning will most likely be misunderstood or misinterpreted by the consumer.

Irrelevance

Product claims are true, but of little impact or importance to consumers who are actually looking to purchase green items. The statements are irrelevant and often only serve to distract or deter consumers from better, more environmentally friendly options.

Lesser of Two Evils

Claims that, though accurate, distract consumers from the greater environmental impacts of the product category overall. They are often applied to categories that as a whole have questionable effects on the environment, such as pesticides.

Fibbing

Making green product claims that are just not true.

About the Author

Krista McNamara

Krista McNamara

Krista McNamara is the former Editorial Director for the Vehicle Repair Group at Endeavor Business Media. She oversaw five brands  — Motor Age, PTEN, Professional Distributor, ABRN and Aftermarket Business World. She worked in the automotive aftermarket industry for more than 15 years. 

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