Federal Trade Commission to revise “green marketing” rules as Malaysian palm, Saab ads banned for greenwashing

The U.S. Federal Trade Commission has commenced hearings to revise standards for green marketing. The Commission’s environmental marketing guidelines have not been updated since 1998, and do not include a standard for “carbon-neutral”, for example. Recently the UK’s Advertising Standards Authority ruled against ads run by the Malaysian Palm Board, while the Belgian ad watchdog organization ruled against ads by Saab claiming that the “Biopower” cars make roads “finally turn green”.

Vinod Khosla published three articles on Gristmill (Parts I, II, and III) under the title “Pragmatists vs. Environmentalists”, in which the noted investor said that marketing campaigns aimed at “greenwashing” were making hybrids cars more popular than E85, although even corn ethanol reduces emissions, mile for mile, as much as hybrids.

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