FTC Enforcement, Renew Plastics

Cases and Proceedings as follows. In the Matter of N.E.W. Plastics Corp., a corporation, doing business as Renew Plastics

FTC MATTER/FILE NUMBER: 132 3126 
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FTC Order, Stop making false claims...

Company’s Green Claims for Plastic Lumber Misleading
FTC Order Requires Firm to Have Distributors Take Down Ads With Unsupported Claims.
A Wisconsin-based manufacturer of plastic lumber products has agreed to stop making allegedly unsubstantiated claims about the recycled content and recyclability of two of its brands of plastic lumber.“Consumers deserve to know the truth about the products they are buying,”said Jessica Rich, Director of the Federal Trade Commission’s Bureau of Consumer Protection. “Many of them want to buy products that are environmentally friendly, but they can’t do that if they get information that’s wrong or unsupported.”

In its administrative complaint, the FTC alleges that between September 2012 and March 2013, N.E.W. made false and misleading claims while promoting Evolve and Trimax. Specifically, the company claimed: Finally, the proposed order bars N.E.W. from providing anyone else with the means of making false, misleading, or unsubstantiated claims. The order will end in 20 years. The FTC has new information for consumers in a blog post on its website. Also the FTC provides detailed guidance to businesses on environmental claims in its Green Guides. NOTE: The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. For the rest of the story click here.

FTC Settlement, Company claims not TRUE!

Are your green claims clean? Knock on wood. Consumers have another choice these days: plastic lumber, which is often used in decking, fences, outdoor furniture, etc. Wisconsin-based N.E.W. Plastics Corporation (you may know them as Renew Plastics) manufactures two lines of plastic lumber - Evolve and Trimax - and touts their environmental benefits. But according to a settlement announced by the FTC, the company’s green claims didn’t stack up. N.E.W. markets Evolve and Trimax through independent distributors and retailers across the country. One focus of the company’s marketing campaign for Evolve was to position the product as an environmentally conscious choice: "When you build with EVOLVE recycled plastic lumber, you demonstrate your commitment to the environment and sustainable living. EVOLVE recycled plastic lumber products are 100% plastic and generally contain over 90% high density polyethylene (ReHDPE) material."

This statement turns out not to be truthful. Despite express representations that the products were recyclable, local recycling centers wouldn’t accept Evolve and Trimax. Why not? Because they contain other components that aren’t recyclable. In addition, most facilities accept only small household items, not larger, heavy building materials like plastic lumber. What about sending it back to N.E.W.’s factory for recycling? Good luck with that. The shipping cost made that an unrealistic option. The FTC’s complaint alleges that N.E.W.’s “90% recycled plastic” claim for Evolve was false and unsubstantiated, as was the representation that Trimax was made of all or virtually all post-consumer recycled content like milk jugs or detergent bottles. The settlement offers insights for advertisers making environmental representations. First, the FTC’s Green Guides remain your best resource for how to avoid an eco-oops in your advertising. A product may have a theoretical environmental effect in a lab setting, but your ad claims should reflect actual consumer use. File your online comments about the proposed settlement by March 24, 2014, and bookmark the FTC's Environmental Marketing page for guidance on keeping your green claims. This video is a good place to start: Click here for the full story.