FTC Cracks Down on ‘Greenwashing’ Claims

April 8, 2022 | As sustainability becomes a growing point of marketing differentiation in the toy aisles, The Toy Association is reminding members that the Federal Trade Commission (FTC) is continuing to crack down on the misuse of environmental claims, and violators will be fined.

Members will want to pay particular attention to bamboo when discussing the sustainable makeup of their products. Recently, the FTC used its Penalty Offense Authority to seek civil penalties and take action against national retailers for falsely marketing dozens of rayon textile products as “bamboo.”

While bamboo may be used in lieu of wood or plastic in solid items and legitimately labeled as “bamboo” as a source material for fabrics, manufacturers cannot label products or claim them to be made of bamboo fiber, because it is mechanically separated, processed (using either the cuprammonium or viscose process), and re-extruded into fibers. Instead, they must be labeled “rayon” in the same way all other rayons are labeled, regardless of the source of the cellulosic starting material.

Also noted by the Commission, converting bamboo into rayon requires the use of toxic chemicals and results in hazardous pollutants.

The FTC is also reviving additional Notices of Penalty Offenses for advertising and packaging of toys that were issued in the 1970s and 1980s but remain valid and relevant today. The Toy Association is encouraging businesses to familiarize themselves with these determinations.

The Toy Association will continue to monitor and provide updates on sustainability guidelines and rulings as they are made. Members are also encouraged to utilize the ICTI Ethical Toy Program (formerly ICTI CARE Process) as a resource to ensure their global supply chains are more environmentally sustainable.

Questions may be directed to Alan Kaufman, senior vice president of technical affairs at The Toy Association.