Jun 30 2009
NetImpact Boston - Interactive Labeling and Greenwashing
Recently we have decided to remove the word “green” from our company name and rename it to simply JumpGauge Systems; we will do it as soon as legally possible. Why? Because having “green” in the name makes you a prime target for “greenwashing” accusations.
Below is a post that Stas Anton submitted to Net Impact blog: NIBbles. You can read it and the full thread here: http://netimpactboston.org/category/nibbles/
POST BELOW IS REPRODUCED FROM NET IMPACT BOSTON BLOG
Labels are designed to help all involved: a seller can tell a story about a product, a consumer can learn about the highlights of the product. The interesting thing about eco-labeling is that it often times hurts all involved: consumers because they are misled, distributors because they lose trust, and manufacturers, because they cannot tell their side of the story in all its complexity.
During the last Clean Tech dinner our discussion revolved around what is the real impact of eco-labeling and greenwashing. For example: is it important to tell a consumer green information about a product? Do they care?
The answer is probably “yes”, as long as there is trust between a consumer and a producer. However, if there is no trust, then the “green” labels become an irritant, and a likely turn-off for a consumer. Today many companies ride the green wave, because the green market is both hot and new. This will change once the market matures and consumers become wise and more educated on the subject of green.
The universal agreement during the discussion was that more transparency increases trust and reduces the possibility of misrepresentation. The trick, of course, is to provide transparency without boring the consumer.
There is a lot to learn from the current evolution of green and eco-friendly labeling, but the sooner we figure out how to make and read them, the better off all of us will be. After all, most of us are both: consumers and producers.
2 Responses to “NetImpact Boston - Interactive Labeling and Greenwashing”
I think that consumers can only then be educated about labels if regulations, standards, and definitions exist for these labels. As long as there is a lack of these, consumers can’t learn.
I see it daily in my field. Only certified organic pet food claims are regulated and enforced by the US government, all other (non-certified) claims are not and are abused to the fullest.
Consumers can’t know that companies are allowed to use the huge regulatory and legal loophole for their marketing purposes.
I see the same greenwashing in the pet food industry - companies that pack their not very green products now in an ‘ecofriendly’ box that’s imported from China now ride the green wave!
Consumers buy it all. Why shouldn’t they, they assume that the FTC, FDA, or USDA regulates all this to protect them (and companies that are actually organic and green). They assume wrongly. Thy buy what they think is the same quality but much cheaper than the other products.
The lack of regulations even confuses ‘experts’ that publish wrong information - how can a consumer choose wisely or be educated well?
Even organic consumer company directories add to the confusion by listing truly organic companies without explanation with pretend-to-be organic companies. How is a non-expert consumer to tell the difference?
Thank you for your comments! The label and other seal of approval is still a hot topic here in the US. However, it is to mention that a new seal of approval endorsed by NSF/ANSI was just issued :
http://www.npicenter.com/anm/templates/newsATemp.aspx?articleid=23302&zoneid=2
However, this label for cosmetics is still far from the ECOCERT and other BDIH labels in the EU.