Practical Business Law- HJ Legal's Blog

August 21, 2010

Green Credentials or “Greenwash”- Environmental Claims

Over the last few years, consumers have become increasingly aware and concerned about the social and environmental impact of their shopping choices. Many businesses are trying to make their products and services more appealing by making “green” claims. Some may be just jumping on the “green” bandwagon, and others genuinely want to demonstrate their environmental credentials.

However, recent Advertising Standards Authority (ASA) adjudications on two BMW press adverts, demonstrate that a rigorous approach is needed to justify environmental claims.

The first adjudication related to the Z4s Drive 35is. BMW stated the BMW EfficientDynamics system  in the Z4s Drive 35is “reduces BMW emissions without compromising performance developments and is standard across the model range”. CO2 emissions were stated as 210g/km. Various other claims were made in connection with performance and reduced emissions.

Complaints were made to the ASA, that the advert was misleading as it  implied that the CO2 emission level of 210 g/km was low.

BMW provided evidence confirming the emission rate of 210 g/km was lower than BMW’s previous model and some competitors’ vehicles in the same category. However, the ASA noted from the Department of Transport fuel economy bandings, that this emission rate is within one of the higher bands. Accordingly, the ASA concluded the rate was relatively high for any car and that the ad was likely to mislead without further qualification. BMW were also informed that when comparing CO2 emissions against its own previous products or their immediate competitors, such comparison must be clear.

The second adjudication related to BMW’S concept car, Concept ActiveE. BMW claimed Concept ActiveE which is powered by electricity produced zero CO2 emissions when driving and “100% JOY 0% EMISSIONS”. The advert was challenged on the basis it was misleading, because the car would need to be charged with electricity, therefore producing emissions. The complaint was upheld.

Any business which wants to make environmental claims which stand up to the scrutiny of their customers and the ASA need to ensure:

  • Their claims are accurate and the basis of the claims must be clear.
  • Adverts do not omit any significant information which could result in misleading claims.
  • Claims regarding reduction of emissions are backed up with substantial evidence including full “life cycle” considerations, and details of comparisons with its own or competitors’ products must be clearly communicated.

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