FTC SETTLES CHARGES WITH PLASTIC LUMBER MANUFACTURER REGARDING MISLEADING CLAIMS

FROM:  FEDERAL TRADE COMMISSION 

FTC Approves Final Order Settling Charges That N.E.W. Plastics’ Environmental Claims for its Plastic Lumber Products Were Misleading

Following a public comment period, the Federal Trade Commission has approved a final consent order settling charges that N.E.W. Plastics Corp., a Wisconsin-based manufacturer of plastic lumber products, misled consumers and distributors about the recycled content, post-consumer recycled content, and recyclability of its products.

The FTC’s February 2014 complaint alleges that between September 2012 and March 2013 the company made false and misleading claims that its Evolve plastic lumber products are made from 90 percent or more recycled content. It also alleged that the company made false and misleading claims that its Trimax plastic lumber products are made from mostly post-consumer recycled content and that both Evolve and Trimax are recyclable.

Under the FTC’s final order, the company must have credible evidence to support any claims it makes about its products’ recycled content, post-consumer recycled content, recyclability, or any other environmental benefit, and is required to tell its distributors to stop using marketing material for the two products provided by the company before December 2013.

The final order also bars N.E.W. from making unqualified recyclable claims about any product or package, unless the product or package can be recycled in an established recycling program, and such facilities are available to at least 60 percent of consumers or communities where the product or package is sold.

ENVIRONMENTALLY CONSCIOUS DIAPER COMPANY SETTLES FTC DECEPTIVE CLAIMS CHARGES

FROM:  FEDERAL TRADE COMMISSION 
Down to Earth Designs, Inc. Settles FTC Charges That Its Environmental Claims for Diapers and Related Products Were Deceptive
Order Requires Company to Substantiate a Range of “Green” Claims for its gDiapers Products

Portland, Oregon-based Down to Earth Designs, Inc., which does business as gDiapers, has settled Federal Trade Commission charges that it made deceptive claims about its products’ biodegradability, compostability, and other environmentally friendly attributes. The proposed settlement order bars gDiapers from making claims alleged in the complaint, unless they are true and not misleading, are adequately substantiated, and meet specific requirements in the FTC’s recently revised Green Guides.

gDiapers markets and sells the gDiapers diaper system, which includes a reusable outer shell (gPants) and disposable pad inner liners (gRefills), as well as baby wipes (gWipes). According to the FTC’s complaint, the company advertised both gRefills and gWipes as biodegradable and compostable. The company also claimed that gDiapers diapers were plastic-free, and that disposing of gRefills by flushing them down the toilet was environmentally beneficial.

“Whether they’re buying diapers or dishwashers, consumers base their purchasing decisions on claims about a product’s attributes,” said Jessica Rich, Director of the Federal Trade Commission’s Bureau of Consumer Protection. “And the claims for these diapers just didn’t pass our smell test. Consumers can count on the FTC to make sure claims made by marketers are meeting the standards for truthfulness, accuracy, and substantiation.”

The FTC’s complaint alleges that the company made false or misleading representations in marketing gRefills and gWipes as biodegradable. These representations include claims that: the products are “100% biodegradable” and “certified” biodegradable; gRefills and gWipes will biodegrade when tossed in the trash; gRefills will biodegrade when flushed; and gRefills offer an environmental benefit because they can be flushed. In fact, the complaint alleges, gRefills and gWipes are not biodegradable because they do no completely break down and decompose into elements found in nature within one year after customary disposal, which is in the trash.