June 11, 2009 - The FTC has charged Kmart Corp., Tender Corp., and Dyna-E International with making false and unsubstantiated claims that their paper products were “biodegradable.”

Kmart Corp. called its American Fare brand disposable plates biodegradable, Tender Corp. called its Fresh Bath-brand moist wipes biodegradable, and Dyna-E International called its Lightload brand compressed dry towels biodegradable. In the three complaints, the FTC alleges that the defendants’ products typically are disposed in landfills, incinerators, or recycling facilities, where it is impossible for waste to biodegrade within a reasonably short time.

As are result Kmart and Tender have agreed to orders that bar them from making deceptive “degradable” product claims and require them to have competent and reliable evidence to support environmental product claims. The settlement with Tender also requires it to disclose clearly whether any biodegradable claim applies to the product, the packaging, or component of either. Both settlements contain provisions for record-keeping processes to assist the FTC in monitoring the companies’ compliance. The third matter, against Dyna-E and its owner, George Wheeler, will proceed in administrative litigation.

The FTC’s Guides for the Use of Environmental Marketing Claims, or “Green Guides” provide marketers with guidance to avoid making false or misleading green claims by explaining how consumers understand commonly used terms, such as “biodegradable” and “recyclable,” and by describing the basic elements needed to substantiate those claims. Since 1992, the Green Guides have advised that unqualified biodegradable claims are acceptable only if they have scientific evidence that their product will completely decompose within a reasonably short period of time under customary methods of disposal.

For businesses, the FTC has issued a brochure, “Complying With the Environmental Marketing Guides” which provides an overview of environmental marketing claims and the Green Guides.

The agency is currently reviewing its Green Guides to include particular claims, such as “sustainable” and “carbon neutral,” which were not common when the FTC last updated its Guides. As part of the review the agency has held a series of workshops and plans to study consumers’ understanding such claims.

The FTC says that with the recent growth in “green” advertising and product lines, the agency will continue its efforts to ensure that environmental marketing is truthful, substantiated, and not confusing to consumers.