GET RID OF GREENWASH – a FLAGSHIP CAMPAIGN?

General AssemblyBrussels, November 14, 2013

Rational behind proposed flagship campaign

Green claims often used as a marketing tool in order to influence consumer decision to buy a product

“Green” products are often sold at a higher price

If green claims are misleading, consumer detriment is not only economical, but can de-motivate consumers to engage in sustainable consumption in the future

Numerous examples of misleading green claims in Europe

Low trust among consumers of environmental claims

Eurobarometer 367 (July 2013):

Only a bit more than half of EU citizens generally trust producers‘ claims about the environmental performance of their products

Study by Consumer Focus (2009):

58% of consumers think a lot of companies pretend to be green just to charge higher prices

Example 1 (appliances): „Very energy saving refrigerator“

The consumer center Hamburg (a vzbv member) took legal action against retailer Media Markt in 2010

Media Markt used the slogan “very energy saving” for a refrigerator/freezer which was of energy efficiency class “A”.

This had been considered to be misleading as 308 out of 543 appliances already belonged to class “A+” and almost 17% of all available appliances on the German market belonged even to energy efficiency class “A++”.

As the consumer center Hamburg won the case, the retailer was not allowed to use this advertisement anymore

Example 2 (appliances): Which? Test of small electrical appliances

Which? Performed own tests on small appliances

E.g. Bosch steam generator used more water and consumed more energy in its „eco mode“ that on „max steam“

No legal action taken

Example 3 (textiles):Lidl not allowed to use term „natural product“ for textiles made of lyocell

Lidl used to advertise textiles made of lyocell as a „natural product“

In order to produce lyocell, large amounts of chemicals and energy are necessary

Verbraucherzentrale Hamburg issued a notice of warning against Lidl

VZHH demanded the company to cease and desist from the advertising –> Lidl signed declaration

If Lidl fails to comply, VZHH might take case to court

Example 4 (toilet cleaners): Tesco naturally (UK) – test by which?

As a result of which? investigation, Tesco is removing claim „no phosphates“

Example 5 (cars): Opel advertisement „Insignia ecoFlex“: loads of fun of driving & low fuel consumption (2009)

VZBV admonished Opel as manufacturer advertised its model „Insignia ecoFlex“ with „climate friendly CO2 emissions“

Opel agreed not to use this slogan in the future

No EU legislation harmonising environmental marketing

Green claims partly covered by specific legislation prohibiting the misleading use of the claims used (e.g. organic labels, energy labelling, etc.)

Outside those aspects covered by specific EU legislation, general provisions of the Directive on Unfair Commercial Practices are to be used when assessing environmental claims

UCPD does not include specific provisions on misleading environmental claims:

It is the general clauses that apply, meaning that the assessment of a misleading green claim must be done on a case-by-case basis

Full harmonization effect of UCPD does not allow MS to adopt more ambitious provisions, e.g. through general prohibitions on the use of certain terms (e.g. Eco-friendly)

Objectives of campaign:Consumers are not being ripped-off by misleading green claims

(1) To stop the use of blatantly misleading green claims (concrete products/claims identified at a later stage);

(2) To show possibilities for redress;

(3) To make consumers aware how to recognize a misleading green claim;

(4) To work with national authorities or businesses where relevant to further target misleading green claims;

(5) To lobby for more ambitious guidelines under the Unfair Commercial Practices Directive (UCPD) to effectively

combat misleading green claims

Strategy of flagship campaign – EU level

Collecting examples of misleading green claims

Quantification of consumer harm in cases of misleading green claims;

Enforcement campaign: coordinated enforcement actions (injunctions, complaints to national authorities, negotiations with business etc.)

Assembling information on redress possibilities in each country;

Push for appropriate EU regulatory action (e.g. revision of Unfair Commercial Practices Directive)

Strategy of flagship campaign – Member State level

Preparation of evidence: provide consumer complaints, cases, potentially surveys to „build the case“

Participate in coordinated enforcement activities – taking injunction actions to courts or national enforcement activities

Inform BEUC secretariat about concrete possibilities for consumers to get redress in those cases

Help develop communication material

Do media work at national level

Participate in awareness building strategy and activities how to recognize misleading green claims

Annex

What is a „misleading green claim“? (p. 37 UCPD Guidance Document)

The expressions "environmental claims" or "green claims" refer to the practice of suggesting or otherwise creating the impression that a product or a service, is environmentally friendly or is less damaging to the environment than competing goods or services.

When such claims are not true or cannot be verified this practice can be described as 'greenwashing'.

Example 6 (cars): Lexus ad banned in the UK (2007)

Ad for Lexus RX 400h car (192 g CO2/km): „High performance. Low emissions. Zero guilt.“

Advertising Standards Authority decided that even though the car‘s CO2 emissions were low compared to similar cars, absolute emissions are still very high and this would give a misleading impression that this car is environmentally friendly

Example of „possible“ misleading ads (no legal action taken) from 2012

New Renault Espace ad (2012) – „Nature will reward you. Taxes as well“

Similar case to Lexus example in the UK from 2007?

Even though the car‘s CO2 emissions are „relatively“ low compared to similar cars, absolute emissions are still high and this give a misleading impression that this car is environmentally friendly

Average emissions of all cars in EU in 2012: 132 g CO2/km

Average emissions target for all cars in the EU in 2020: 95 g CO2/km

www.beuc.eu – environment@beuc.eu

Thank you