2Sustain

A blog focused on sustainable business issues and challenges

Jewelers Need to Know Sourcing Details Before Making Green, Fair Trade Claims

March 10, 2010

diamond ringConsumers are increasingly concerned about the environmental impact and fair trade credentials of the jewelry they buy. But, how are jewelers responding to these concerns? Are they stepping up their sustainability efforts and renewing their commitment to responsible, ethical sourcing? Or, are they simply “suggesting” that they’re doing so in their ad campaigns?

According to an article published yesterday at National Jeweler, much of what we’re now seeing in jewelry ads is nothing more than greenwashing –and it could be illegal.

In “Are your ‘green,’’fair-trade’ jewelry ads legal?” Suzan Flamm, Esq., assistant general counsel of the Jewelers Vigilance Committee, points out that sustainability claims are illegal unless advertisers have a reasonable basis for making them.

From the article:

Federal law prohibits “unfair or deceptive acts or practices” in print, online and TV advertisements, as well as in any promotional materials, including telephone marketing. The basic principles of advertising law are straightforward:

1. Advertising must be truthful and not misleading.
2. Advertisers must have evidence (substantiation) to back up their claims.
3. Advertisements cannot be unfair.

Jewelers can run into problems, Flamm says, because individual interpretations of terms like “green,” “eco-friendly,” “environmentally safe” and “fair trade” can vary widely. Plus, even though global supply chains are now complex and interwoven, it’s absolutely imperative that a manufacturer/distributor know all  product sourcing and manufacturing details before making any green or fair-trade claims.

Flamm’s advice? Play it safe, and only advertise what you can substantiate. That’s good guidance not just for jewelers, but for businesses in all sectors. As she concludes:

Specific claims are much easier to substantiate and are less likely to be deceptive than general claims. Since there is no universally accepted definition of either “green” or “fair trade,” the best way for companies to comply with the law is to narrow the claims made, using appropriate qualifiers. Doing so lessens the likelihood that a company will face FTC enforcement action or a Lanham Act lawsuit from a rival alleging unfair marketing practices.

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