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The need for accurate reporting according to accepted standards has been highlighted in many ways. But this month, we return to a topic we touched upon briefly in July 2023, when we discussed the potential for misleading images and statements about social issues related to an organization’s general marketing efforts.[1] Similar issues arise when it comes to environmental issues, where corporate advertising can easily pose significant risks.[2]
In June 2023, the UK’s Committee of Advertising Practice (CAP) published an update aimed at helping organizations interpret the UK Non-Broadcast Advertising and Direct Promotion Marketing Code (CAP Code) and the UK Broadcast Advertising Code. announced guidance. CAP is a sister organization to the UK’s independent advertising regulator, the Advertising Standards Authority (ASA). CAP is responsible for writing the UK advertising code. This guidance addresses misleading environmental claims and social responsibility in advertising.
In November 2023, the ASA published a research report that stated: Consumer understanding of green disposal claims in advertising.[3] The results generally showed positive attitudes toward recognizing climate change as an important issue, although some commonly used terms were well understood (e.g. recycling, It was clear that other terms were not well understood or confused (compostable, biodegradable). Participants consistently felt that greater regulation was needed after learning proper definitions of these terms.
A previous survey conducted by the ASA in September 2022 found there was little agreement on the meaning of terms such as carbon neutral and net zero. His CAP guidance in June therefore advises companies to avoid using these terms.
The ASA website contains a number of judgments relating to companies deemed to be in breach of the UK’s Environmental Claims Standards.[4] We recommend reading through cases as a way to identify risk areas within your organization.
Regardless of whether your organization is subject to the regulations in force in the UK, the guidance and research described here will be valuable. These represent clear, practical concepts that any organization can follow to avoid confusion related to environmental claims and outright claims of fraudulent advertising.
As I pointed out in my July column on social issues, the risk of misleading statements about environmental issues related to product marketing is a significant issue for organizations to address.
1 Jerry Zack “The ‘S’ in Marketing” CEP MagazineJuly 2023, https://compliancecosmos.org/s-marketing.
2 Advertising Standards Authority, ‘Advertising Guidance – Misleading Environmental Claims and Social Responsibility’ Guidance, 23 June 2023, https://www.asa.org.uk/resource/advertising-guidance-misleading-environmental-claims- and-social-responsibility.html.
3 Advertising Standards Authority; Consumer understanding of green disposal claims in advertisements, qualitative research reportNovember 2023, https://www.asa.org.uk/static/f933c452-fbc9-46fd-9fbf049e9383aa43/ASA-research-on-Green-Disposal-Claims.pdf.
Four Advertising Standards Authority “Rules”, accessed 4 January 2023, https://www.asa.org.uk/codes-and-rulings/rulings.html.
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