How Does Greenwashing Affect Consumers?
As consumers, we encounter marketing messages every day that promise environmental benefits. From cleaning products to energy-efficient appliances, companies use “green” messaging to appeal to people who want to make more sustainable choices. However, these claims do not always tell the full story.
Greenwashing describes false or misleading claims about the environmental benefits of a product, service, or company. It can lead consumers to believe they are making a more sustainable purchase when the advertised benefits are exaggerated, unsupported, or inaccurate.
How Greenwashing Harms Consumers
Greenwashing can influence what consumers buy and how much they are willing to pay. Someone may choose a more expensive product because its packaging suggests it is better for the environment, even when the company cannot support that impression.
One common example is advertising a product as “green” or “eco-friendly” without explaining the specific environmental benefit. These broad descriptions can suggest advantages that go well beyond what the evidence supports.
Another tactic is highlighting one environmental attribute in a way that implies broader benefits. For example, a truthful statement that packaging contains recycled material does not necessarily mean the entire product has a lower environmental impact. Whether the advertising is misleading depends on the overall message and the evidence supporting it.
Greenwashing can also undermine trust in environmental labels and make it harder for consumers to distinguish meaningful improvements from marketing. Businesses that accurately communicate their sustainability efforts may face competition from companies making exaggerated claims.
When Can Environmental Marketing Claims Create Legal Risk?
Environmental marketing can create legal risk when it gives consumers a false or misleading impression about a product, service, or company. The issue is not simply whether a business could do more for the environment. It is whether its advertising accurately represents the environmental benefits consumers are being encouraged to rely on.
Claims can be misleading through words, images, symbols, certifications, or omitted information. A statement that is technically accurate may still be deceptive if the overall message suggests benefits the company cannot support.
Federal Law: The FTC Act and Green Guides
Section 5 of the Federal Trade Commission Act prohibits unfair or deceptive acts or practices in commerce. A claim may be deceptive when it is likely to mislead consumers acting reasonably under the circumstances and is material to their purchasing decisions.
The FTC’s Green Guides explain how these principles apply to environmental marketing. The Guides are not independently enforceable regulations. However, the FTC can bring an enforcement action when environmental advertising violates the FTC Act.
Businesses should have a reasonable basis for environmental claims before making them. Depending on the claim, this often requires competent and reliable scientific evidence. Important limitations should be clear, prominent, and close to the claim.
Environmental Claims That May Mislead Consumers
- Broad “green” or “eco-friendly” claims: These statements can imply extensive environmental benefits that are difficult to substantiate. Identifying a specific, supported benefit helps consumers understand what is actually being claimed.
- Recyclability claims: A material’s technical ability to be recycled is not enough. Under the Green Guides, an unqualified recyclable claim generally requires appropriate recycling facilities to be available to at least 60% of consumers or communities where the item is sold.
- Compostable or biodegradable claims: Claims should reflect the conditions needed for a product to break down. A product requiring industrial composting may need a clear qualification, including information about limited facility availability.
- Misleading certifications: A seal should accurately communicate what was certified. Third-party certification does not eliminate the advertiser’s responsibility to substantiate its claims.
- Overstated recycled content: Advertising should distinguish between the product and its packaging and accurately describe the amount of recycled material.
These examples show why context matters. A limited environmental benefit should not be presented in a way that implies an unsupported benefit for the whole product.
California Law Provides Additional Protections
California Business and Professions Code section 17580.5 prohibits untruthful, deceptive, or misleading environmental marketing claims, whether explicit or implied. Conformity with the FTC’s Green Guides can provide a defense under that section, subject to statutory exceptions. It does not automatically establish compliance with every other applicable law.
Depending on the circumstances, misleading environmental advertising may also violate California’s False Advertising Law, Unfair Competition Law, or Consumers Legal Remedies Act. These laws address conduct such as misleading advertising and misrepresenting a product’s characteristics, benefits, or certification.
California also has specific requirements for certain environmental labels. Products marketed as “compostable,” for example, must satisfy applicable standards and labeling requirements. Meeting federal guidance alone may not satisfy these additional state requirements.
California’s SB 343 establishes criteria for recyclable claims and recycling symbols based on collection and processing in the state. As of October 2026, CalRecycle reports that a July 14, 2026 preliminary injunction blocks enforcement of SB 343. That development should be distinguished from the broader laws prohibiting false or misleading advertising. See CalRecycle’s recycling-label guidance for updates.
“Carbon Neutral” and “Net Zero” Claims Require Particular Care
California’s AB 1305 requires entities operating in California and making covered climate claims within the state to publish specified information on their websites. Covered claims include achieving net zero emissions, being carbon neutral, and certain claims about significant greenhouse gas emissions reductions.
Required disclosures include information documenting how the claim was determined to be accurate or accomplished, how interim progress is measured, and whether independent third-party verification exists.
Additional disclosures apply to covered purchases or uses of voluntary carbon offsets, including project information and the methods used to estimate emissions benefits. Required disclosures must be updated at least annually.
Publishing disclosures does not, by itself, establish that a climate claim is truthful. Companies must still avoid false or misleading advertising.
How to Spot Greenwashing Tactics
Consumers should not have to investigate every marketing claim to make an informed purchase. Still, a few practical questions can help identify claims that deserve closer attention:
- Look for specific benefits: Does the company explain exactly what makes the product environmentally preferable, or does it rely on broad terms such as “green” and “eco-friendly”?
- Check the scope of the claim: Does the advertised benefit apply to the product, its packaging, one ingredient, or only part of the manufacturing process?
- Examine certifications: Identify who issued the certification and what it actually covers. For example, ENERGY STAR certification concerns energy efficiency; it does not establish that a product is environmentally preferable in every respect.
- Read qualifications carefully: Check whether recycling or composting requires a special facility and whether that facility is available where you live.
- Look for supporting information: Check whether the company provides evidence, identifies testing standards, or explains the methodology behind its claims.
- Consider the broader impact: A single positive attribute does not tell you everything about a product’s raw materials, manufacturing, transportation, use, or disposal.
How Can We Encourage Real Sustainability?
Clear, accurate environmental marketing helps consumers make informed choices and gives businesses a reason to pursue meaningful improvements. Companies can build trust by describing specific achievements, acknowledging limitations, and distinguishing future goals from results already accomplished.
Employees can also help promote sustainability in the workplace. If you are concerned about your employer’s environmental practices, consider the following steps:
- Raise practical concerns: Discuss opportunities to reduce waste, improve energy efficiency, or make environmental communications more accurate.
- Look for everyday improvements: Actions such as reducing unnecessary printing, using reusable containers, and conserving energy can support broader workplace efforts.
- Participate in company initiatives: Sustainability committees or similar groups can provide opportunities to suggest improvements and track progress.
Meaningful sustainability depends on both action and accountability. Environmental claims should help people understand a company’s progress rather than create an impression its practices cannot support.
What Can Consumers Do if They Believe They Were Misled?
A questionable environmental claim does not automatically establish a successful lawsuit. The applicable law, the advertising’s wording and context, and the consumer’s experience all matter.
For a private claim under California’s Unfair Competition Law, a consumer generally must have suffered an actual injury and lost money or property as a result of the challenged conduct. Other consumer protection claims have their own requirements.
If an environmental claim influenced your purchase, preserve:
- The product packaging and environmental labels.
- Your receipt or other proof of purchase.
- Copies or screenshots of the advertisement or product listing, including any qualifications.
- Relevant communications with the company.
- Notes explaining what the claim led you to believe and why it mattered to your purchasing decision.
These materials can help an attorney evaluate whether the advertising may have been misleading and whether you have a potential consumer protection claim.
Speak With Matern Law Group About Misleading Environmental Claims
If you believe greenwashing influenced your purchase, you do not have to navigate your options alone. Matern Law Group can review your concerns, help you understand your rights, and evaluate whether the circumstances may support legal action.
Call 855-913-1134 or complete our contact form to request a free, confidential consultation.
Sources
- FTC Green Guides, 16 CFR Part 260
- FTC: Environmental Claims—Summary of the Green Guides
- California Business and Professions Code section 17580.5
- California False Advertising Law, section 17500
- California Unfair Competition Law, section 17200
- California Unfair Competition Law, section 17204
- California Consumers Legal Remedies Act, section 1770
- CalRecycle: Truth-in-Labeling Laws
- CalRecycle: Accurate Recycling Labels and SB 343 Updates
- California Health and Safety Code section 44475.1: Carbon Offset Disclosures
- California Health and Safety Code section 44475.2: Climate Claim Disclosures
- California Health and Safety Code section 44475.3: Disclosure Updates and Enforcement
