Court Applies FTC Green Guides in Igloo Marketing Lawsuit

/in , ,

A proposed class action challenging recycled content, biodegradability, and “Made in USA” claims on Igloo-brand cooler products can proceed, the Eastern District of New York ruled on February 2, 2026.

According to the court, Igloo makes unqualified recycled content and biodegradability claims on the front labels of various products.  These include statements such as “Made From Biodegradable Materials” and “Made With Post Consumer Recycled Plastic Material,” often accompanied by the chasing arrows recycling symbol.  Igloo also advertises certain products with unqualified “Made in USA” representations.  The plaintiffs, a New York consumer and a Texas consumer, allege that these claims are deceptive and that they would not have purchased the products at the stated price had they known the products lacked these qualities.

The court’s analysis centered on the Federal Trade Commission’s (FTC’s) Green Guides, which provide guidance on environmental marketing claims.  Although the guidance does not create independent causes of action, the court emphasized that alleged noncompliance can support deception claims because the Green Guides “illustrate how unqualified representations of a product’s qualities may plausibly deceive and mislead a reasonable consumer.”

With respect to Igloo’s unqualified biodegradability claims, the court observed that the Green Guides caution against such claims for products disposed of in landfills, where conditions do not allow for prompt degradation.  Combined with studies cited by the plaintiffs, this guidance made the plaintiffs’ deception theory plausible at the pleading stage.

Similarly, the court found the company’s recycling content claims plausibly deceptive because they did not disclose that the products were not entirely made of recycled content—despite the Green Guides’ instruction that marketers qualify claims for products containing both recycled and non-recycled content.

The court also held that, at this stage, the plaintiffs had standing to challenge representations made about products they did not purchase.  It noted, however, that Igloo may renew its standing arguments at class certification.

“Made in USA” and Other Claims

The plaintiffs’ “Made in USA” claims also survived dismissal, despite falling outside the scope of the Green Guides.  The court held that the allegations—that only a “minimal amount” of certain materials used by Igloo are produced domestically—were enough at the pleading stage, even without concrete proof that the contested products contain foreign materials.

“Plaintiffs have alleged that the relevant products contain ‘materials’ and ‘full components’ sourced and imported from other countries,” the court wrote.  “This is sufficient to allege that the Made in USA Representations were materially misleading”

Two claims did not survive. The court dismissed the plaintiffs’ breach of express warranty claim for failure to provide pre-suit notice, and dismissed the unjust enrichment claim as duplicative of the statutory and common law claims.

Throughout the opinion, the court repeatedly declined to rule or provide commentary on the merits.  Quoting caselaw, the court emphasized that “‘[a] federal trial judge, with a background and experience unlike that of most consumers, is hardly in a position to declare’ that reasonable consumers would not be misled.”

The case is Lieber v. Igloo Products Corp., No. 25-cv-488 (E.D.N.Y.), filed January 28, 2025.

Climate Neutral Labeling Lawsuit Dismissed by Court

/in ,

A proposed class action lawsuit challenging Mondelēz International, Inc.’s labeling on its “Zbar” snack bars has been tossed by a federal judge, who held that the company’s “climate neutral certified” claim was factual and could not mislead a reasonable consumer.

The court’s October 27, 2025, order turns on the inclusion of the word “certified” in the claim.  Since the product was factually certified by a third party called Change Climate Project, the court found no likelihood of deception, and dismissed the case with prejudice.

“Mondelēz did not advertise that its product was in fact climate neutral, but instead that its product was certified as climate neutral….There is nothing deceptive about Mondelēz including on its packaging a true statement,” the court wrote.

The plaintiff had alleged that the label is likely to mislead a reasonable consumer into believing that the product does not contribute to climate change, despite the fact that the product results in “roughly 54,000 tons of carbon dioxide equivalent” emissions annually.  According to the complaint, the product only obtained its certification due to the purchase of carbon offset credits, which are often fraudulent.

FTC Green Guides

To support her arguments, the plaintiff pointed to environmental guidance promulgated by the Federal Trade Commission (FTC) known as the Green Guides, which are codified into California law.  The Green Guides caution that third-party certifications do not relieve marketers of the obligation to substantiate all claims reasonably conveyed by the certification.

The court, however, found that although the label did not identify the certifier by name, the climate neutral claim’s placement, design, and wording made clear that the certification came from a third party.  Accordingly, “it cannot reasonably be attributed to Mondelēz.”

“Reasonable consumers are generally not expected to conduct independent research to substantiate claims made on a product’s packaging, but neither are they permitted to defy common sense and everyday experiences,” order states.

The case is Salguero v. Mondelēz International, Inc., No. 25-cv-2139 (N.D. Ill.), filed 2/28/2025.

California Settles $1.75M Lawsuit Over False Plastic Bag Recycling Claims, Launches Another

/in , , , ,

California’s attorney general has reached a $1.75 million settlement with four plastic bag producers and initiated a lawsuit against three more, alleging that the companies falsely claimed their plastic bags were recyclable to comply with a state ban on single-use plastic bags known as SB 270.

According to the October 17, 2025, announcement, the defendants in both cases labeled their bags with the “chasing arrows” recycling symbol, made recyclability claims, and self-certified their products as recyclable.  However, when the attorney general’s office sent demand letters requiring that the producers substantiate their claims, they were allegedly unable to provide sufficient evidence.

“[D]espite the manufacturers’ claims and widespread consumer belief, these bags do not, in fact, appear to generally be recyclable, let alone ‘recyclable in the state,’ as SB 270 requires,” the announcement states.

California’s recycling authority, CalRecycle, has “released several reports indicating that the vast majority of plastic carryout bags in California are not being recycled in California,” the most recent complaint states.  Even plastic bags deposited in designated collection bins mostly “end up in landfills or incinerators or are shipped to other countries.”

In addition to violating SB 270, all defendants face alleged violations of California’s Environmental Marketing Claims Act, False Advertising Law, and Unfair Competition Law.  Some of the violations stem from alleged noncompliance with the Federal Trade Commission’s (FTC’s) Green Guides, which are incorporated into California law.

The settlement is subject to court approval.  A copy of the proposed final judgement can be found here.

Verdant Law to Lead ACA Webinar on FTC’s “Made in the USA” Enforcement

/in , ,

Verdant Law is pleased to announce that Phil Moffat and Irene Hantman will lead an American Coatings Association (ACA) webinar on the FTC’s renewed focus on “Made in the USA” claims.  The session will be held on September 25, 2025, from 1–2pm ET.

Although the current Trump administration has generally adopted a deregulatory stance, “Made in the USA” claims have been a notable exception.  This past July, the FTC declared “Made in the USA Month” and announced stepped-up enforcement, including warning letters to major retailers such as Amazon and Walmart.

This webinar will provide insight to help attendees align marketing strategies with legal standards, avoid enforcement risks, and ensure “Made in the USA” claims are both effective and compliant.

Attendance is limited to, but free for, ACA members.  Register here.

“Made in the USA” Claims Face Renewed FTC Scrutiny

/in , ,

The Federal Trade Commission (FTC) has recently intensified enforcement of “Made in the USA” claims, signaling that such marketing representations remain a priority even amid broader deregulatory themes in the second Trump administration.   In July, the commission designated “Made in the USA Month” and used the occasion to highlight the legal standards companies must meet when promoting domestic manufacturing.

“It is important to protect Americans from deceptive advertising, and also important because it provides consumers with confidence that when they buy something that says ‘Made in the USA’ they are actually supporting American workers, American manufacturers, and American communities,” FTC’s July 1 press release stated.

Recent Enforcement Actions

Just days later, on July 8, FTC announced that it had issued warning letters to four manufacturers—Americana Liberty, Oak Street Manufacturing, Pro Sports Group, and USA Big Mountain Paper—for potentially deceptive US-origin claims.  “Companies that falsely claim their products are ‘Made in the USA’ can expect to hear from the FTC,” the commission warned.

FTC also notified Amazon and Walmart, urging them to strengthen oversight of “Made in the USA” representations made by third-party sellers on their platforms.

Legal Framework and Risk

Under the FTC’s 2021 Made in USA Labeling Rule, marketers must ensure that any unqualified “Made in USA” claim is backed by evidence showing that the product is “all or virtually all” made in the United States.  That requirement extends beyond final assembly—virtually all components must be US-sourced, and all significant processing must occur domestically.  FTC can seek civil penalties exceeding $50,000 per violation.

What Businesses Should Do Now

Companies making US-origin claims—whether on packaging, advertising, or e-commerce listings—should immediately assess whether those claims are substantiated and appropriately qualified.  Supply chain documentation, legal review of marketing copy, and platform-level seller oversight are all critical steps.  FTC’s recent actions make clear that “Made in USA” claims are no longer low-risk, especially for businesses operating under public scrutiny or national branding strategies.

For support with compliance reviews, developing lawful origin claims, or navigating FTC correspondence, our team is here to help.

Clothing Accessories Companies Penalized for False Made in USA Claims

/in , ,

In August 2023, the Federal Trade Commission (FTC) finalized a complaint and order against Chaucer Accessories, Inc. and two other companies owned by Thomas P. Bates for falsely labeling belts, shoes, and other products as “Made in the USA” (MUSA). The order includes a monetary judgment of $191,481.

According to FTC, the New England-based companies regularly claimed that certain products were MUSA, even though these products were wholly or largely imported. In other instances, the companies claimed that certain belts were “Made in the USA from Global Materials,” when in reality, the companies merely affixed buckles to imported belt straps. FTC alleged three violations of section 5(a) of the Federal Trade Commission Act: one violation for the false MUSA claims, one violation for the false MUSA from global materials claim, and one violation for distributing the false claims to resellers for their use in the resale of the products.

In addition to the monetary judgment, the order places restrictions on the companies and Bates on making unqualified MUSA claims, prohibits them from misrepresenting their products’ country of origin or providing others the means to make misrepresentations and imposes requirements for qualified MUSA claims and assembly claims. The companies must also notify affected customers of the violations and provide FTC with sufficient customer information for the Commission to administer customer redress.

Walmart and Reynolds Sued Over Recyclable Plastic Bag Marketing Claim

/in , ,

The State Attorney General of Minnesota has filed a lawsuit against Walmart Inc. and Reynolds Consumer Products Inc. (the owner of the trash bag trademark “Hefty”) for falsely marketing their plastic bags as recyclable. The Complaint alleges violations of Minnesota’s Prevention of Consumer Fraud Protection Act, Deceptive Trade Practices Act, False Statement in Advertising Act, and deceptive environmental marketing claim regulations.

These statutes utilize language explicitly prohibiting the use and dissemination of false, deceptive, or misleading statements. For example, Minnesota’s False Statement in Advertising Act strictly prohibits advertising that contains any material assertion, representation, or statement of fact that is untrue, deceptive, or misleading. Minnesota’s Deceptive Trade Practices Act further states:

“A person engages in a deceptive trade practice when …the person … represents that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have….” (emphasis added).

Defendants, through their product labeling, advertised their products as recyclable, which was false.  In addition, their actions disqualified the recyclable contents of the plastic bags from being recycled. In Minnesota, when recyclable materials or products are placed in non-recyclable bags on the curb, waste management will render the contents of the entire bag unrecyclable, leading both the bag and its contents to end up in landfills.

Additionally, the Complaint alleges deceptive environmental marketing claims by Walmart, citing the Federal Trade Commission’s (“FTCs”) Guides for the Use of Environmental Marketing Claims (also referred to as the “Green Guides”). The Green Guides state, “it is deceptive to misrepresent, directly or by implication, that a product or package is recyclable. A product or package should not be marketed as recyclable unless it can be collected, separated, or otherwise recovered from the waste stream through an established recycling program for reuse or use in manufacturing or assembling another item.” Minnesota recycling facilities cannot process the Hefty brand plastic trash bags labeled as recyclable); in fact, they can cause machine malfunctions and even serious damage.

The Complaint asked the court to order a stop on the sale of these products as marketed. Further, the Complaint requests that the court order the defendants to fund a program to educate Minnesota residents about recyclable materials.

This is not the only lawsuit related to Hefty’s recycling bags. Last year Connecticut’s Attorney General filed a lawsuit against the manufacturer, Reynolds, alleging the company has falsely and deceptively marketed the same Hefty recycling at issue in the Minnesota case. The Complaint states that Reynolds has marketed and sold these bags “despite full knowledge that their bags were incompatible with recycling facilities in Connecticut.” This case is still being litigated.

FTC Finalizes Made in the USA Enforcement Action Against Motocross Parts Maker

/in ,

Last month the Federal Trade Commission (“FTC”) took enforcement action against an ATV and motocross parts maker, Cycra, and one of its officers for falsely claiming the company’s products were manufactured in the United States. FTC’s complaint alleged Cycra made false or misleading Made in the United States (MUSA”) advertising claims in violation of the Made in USA Labeling Rule. The rule strictly prohibits marketers from labeling products as “Made in USA” unless (1) the final assembly or processing of the product occurs in the United States; (2) all significant processing that goes into the product occurs in the United States; and (3) all or virtually all ingredients or components of the product are made and sourced in the United States.

Between 2019 and 2022, Cycra advertised and sold motocross and ATV products, which it claimed were all or virtually all made in the United States. More than 150 of the company’s products displayed labels containing the wording “Made in the USA” (what FTC refers to as a “MUSA Label”) along with images of American flags. Additionally, the company’s website and social media made numerous Made in the USA claims, including that products were “[p]roudly designed, developed and manufactured in Lexington, North Carolina” and “[p]roudly made in the USA.”

Cyrca products were, in actuality, not being produced in the United States. Cycra imported at least 30 shipments of parts or accessories from Asia and Europe and additionally imported shipments of finished products already packaged, some already including MUSA Labels.

FTC’s order details a variety of requirements limiting the claims Cycra can make regarding its products going forward. First, there will be restrictions on unqualified claims; the company will be prohibited from making unqualified MUSA claims for any product unless it can show that the final assembly and all significant processing of the product take place in the United States and that all, or virtually all, ingredients or components of the product are made and sourced in the United States. Additionally, FTC has ordered requirements for qualified claims, requiring that for any qualified MUSA claims, there must be clear disclosure about the extent to which the product contains foreign parts, ingredients, components, or processing. Lastly, FTC has ordered requirements for assembly claims which require the company to ensure that when a product is claiming to be assembled in the United States, its principal assembly takes place in the United States and that those assembly operations are substantial.

The order also included a monetary judgment of $872,577. The monetary judgment has been partially suspended based on the company’s inability to pay.  However,  the company has been required to pay $221,358.66 of the penalty.

Federal Trade Commission Seeks Comment on Green Guides

/in , ,

The Federal Trade Commission (FTC) released a request for public comment on updating its  Guides for the Use of Environmental Marketing Claims (“Green Guides”), which provides guidelines for businesses that want to use environmental marketing claims in their advertising and labeling. The Green Guides aim to help businesses avoid making deceptive or misleading environmental. This includes assisting businesses in determining how consumers are likely to interpret specific claims and how to substantiate environmental claims.  In addition, the Green Guides present options for qualifying claims to avoid deception.

The Commission reviews the Green Guides every ten years, with the last review occurring in. Accordingly, FTC is now seeking comments on the Green Guides to ensure they continue providing helpful guidance for businesses and consumers.

In its request for public comment, the Commission has requested feedback by providing approximately 40 questions as prompts. The questions focus on what FTC Chair Lina M. Khan describes as “relatively emerging environmental topics” and businesses’ views on the Green Guides’ value. Topics include:

  • The use of environmental marketing claims in the context of emerging technologies and market trends, such as ozone friendly/safe, carbon offsets, recyclability, and energy efficiency, and whether the Green Guides should be updated in addressing these areas.
  • The impact of the Green Guides on small businesses, including any challenges or benefits that small businesses have experienced as a result of following the guidelines.
  • The extent to which the Green Guides are consistent with international guidelines and standards for environmental marketing claims.
  • Any additional guidance or clarification that the FTC could provide to help businesses make accurate and non-deceptive environmental marketing claims.

FTC also asks for comment on whether the Guides overlap or conflict with other federal, state, or local laws or regulations, and if so, how?

Additionally, the Commission requests comments on the Guides’ interaction with other environmental marketing regulations and whether the Commission should consider rulemaking to establish independently enforceable requirements related to unfair and deceptive environmental claims.

The Federal Register notice also discusses the types of information that the Commission would find helpful regarding specific environmental marketing claims, including carbon offsets and climate change, degradable, and recyclable.

The Agency is accepting comments until February 21, 2023. You can submit your comments online here.

FTC Approves Final Consent Orders Against Four Paint Companies Regarding Emission- and VOC-Free Claims

/in

The Federal Trade Commission (FTC) approved final consent orders against four paint companies — Benjamin Moore & Co., Inc., ICP Construction Inc., YOLO Colorhouse, LLC, and Imperial Paints, LLC — that allegedly misled consumers by claiming their products were free of emissions and volatile organic compounds (VOCs). To clarify to industry that these orders represent the Commission’s current view, the FTC has rescinded its 2013 Enforcement Policy Statement Regarding VOC-Free Claims for Architectural Coatings.

According to the FTC’s complaints, the companies claimed their paints would not emit VOCs and other chemicals, including during and immediately after application. Some promotions also made explicit safety claims regarding babies, children, pregnant women, and other sensitive populations. However, the FTC alleged the companies had no evidence to support these claims.

The final orders settling the FTC’s claims bar the companies from making unqualified emission-free and VOC-free claims unless: 1) at all times during and after application, both content in and emissions from their paints are actually zero, or 2) emissions are at “trace” levels, as defined in the orders. The new “trace level test” outlined within the orders is as follows:

  1.  A VOC has not been intentionally added to the covered product;
  2. Emission of the covered product does not cause material harm that consumers typically associate with emission, including harm to the environment or human health; and
  3. Emission of the covered product does not result in more than harmless concentrations of any compound higher than would be found under normal conditions in the typical residential home without interior architectural coating.

The final orders also prohibit the companies from making other unsubstantiated health and environmental claims and require Benjamin Moore and ICP Construction to disclose that seals appearing in their promotional materials are their own designations.

The final consent orders can be found here.