What the FTC Considers Greenwashing
The FTC's Green Guides (16 CFR Part 260) set standards for environmental marketing claims. Violations can result in civil penalties up to $51,744 per violation.
FTC requires objective verification. Most digital ad impressions cannot substantiate this claim for the full product lifecycle.
Must specify the basis (offsets? reduction?), timeframe, and scope. Unqualified claims face FTC and SEC scrutiny.
Vague environmental benefit claims. FTC Green Guides require specific, substantiated claims about actual environmental impact.
Must be tied to specific, measurable attributes. "Sustainable" alone is considered unsubstantiated by the FTC.
Third-party verified claims with clear scope are generally permissible under FTC Green Guides.
SEC Climate Disclosure Requirements
The SEC's climate disclosure rule creates mandatory reporting obligations for public companies — with direct implications for marketing emissions.
Scope 3 Emissions Disclosure
Effective 2026Large accelerated filers must disclose material Scope 3 emissions, including advertising supply chain emissions under Category 4 (upstream transportation and distribution).
Climate-Related Risk in Financial Filings
Effective 2025SEC Climate Rule requires disclosure of climate risks that are reasonably likely to have a material impact on business, including regulatory risk from greenwashing exposure.
Board Oversight of Climate Risk
Effective 2025Companies must describe how their board oversees climate-related risks — which now includes marketing compliance risk under FTC and EU Green Claims Directive.
How WE7 AI Keeps You Compliant
Scan all green claims before campaign launch
Greenwashing Guard →Calculate Scope 3 ad emissions for SEC disclosure
Campaign Carbon Score →Generate audit-ready compliance documentation
WE7 Platform →Benchmark claims against industry standards
Global Benchmarks →