Greenwashing

Greenwashing is the false or misleading representation, even when unintentional, of a product or entity as environmentally responsible.

Often, companies will use vague language or exclude unfavorable information to wrongly label products as green or “eco-friendly.” The Federal Trade Commission in the United States helps protect consumers from greenwashing by holding companies accountable for their marketing. It enforces laws that aim to ensure a competitive, fair market.

Third-party research, analyst reports, and other data-backed resources can help investors and consumers best understand the impact of the products they come across.