In recent years, the conversation surrounding environmental sustainability has amplified, with consumers and companies taking tangible steps to ensure minimal impact on the environment. An increasing number of companies have adopted marketing techniques to appeal to environmentally-conscious consumers, such as labeling their products with eco-friendly terms. Companies should be careful of the terms they use to describe their products, however, as they may face legal action and fines if products labeled as, or implied to be, “biodegradable,” “degradable,” or “decomposable” are sold in California. Companies should also be aware of the stringent regulations for using the term “compostable” on consumer products, especially products that are intended to be used for non-compostable purposes.
Why You Can’t Use “Biodegradable” on Products in California
California is known for its stringent environmental regulations, and this extends to regulating how products can be marketed. Since 2013, California has banned the terms “biodegradable,” “degradable,” and “decomposable” from being used in connection with consumer products through California Public Resources Code Section 42357. This is because, while the products may in fact be biodegradable, most consumer products end up in landfills which are designed to prevent biodegradable waste from breaking down. As such, these products may take decades or even centuries to fully degrade or decompose. The law aims to ensure that consumers are not misled as to the environmental impact of such products after they are disposed of.
Regulations on Using “Compostable” on Products in California
Another common eco-friendly term used by companies in marketing their products is “compostable”. In California, a product must typically have a qualified certification[1] to be labeled as “compostable”, although there are non-statutory regulations as well that can further restrict a company’s use of this term. For instance, some biodegradable plastics can only break down in industrial composting facilities that have specific conditions that are not achievable in home composting setups. Labels for such products must clarify that the products are not suitable for home composting to prevent consumer confusion and improper disposal. Compostable products that are intended to be used for non-compostable purposes, such as pet poop bags, must also contain qualifying claims indicating that the products may not be safe for home composting.
New 1/1/2026 Regulations.
Federal Trade Commission (FTC) Green Guides
In addition to these California regulations, the Federal Trade Commission (FTC) has also periodically issued guidelines – referred to as the Green Guides – to help companies avoid making environmental claims that may mislead customers. The Green Guides provide examples of clear violations, as well as provide acceptable definitions of eco-friendly terms. Although the Green Guides are not law, they are an invaluable resource that can help companies avoid liability for false or deceptive advertising based on environmental claims.
What Does This Mean for Businesses?
Companies that sell consumer products in the United States should review the FTC Green Guides for guidance on how to avoid misuse of eco-friendly terms. Ensuring compliance with the Green Guides essential to minimize any liability for environmental claims.
Companies that sell consumer products in California should, in addition to reviewing the FTC Green Guides, familiarize themselves with California regulations on labeling or marketing products with certain eco-friendly claims. Violating these regulations can lead to fines and legal action, and may require recalls or other costly remedial measures.
How We Can Help
Navigating the complex landscape of environmental marketing regulations, both in California and federally, can be daunting. This is where we come in. Our attorneys are deeply experienced in ensuring compliance with both California and federal laws on eco-friendly claims. We can review your product labels, marketing materials, and claims to help mitigate the risk of costly fines and minimize legal exposure. By partnering with us, you can confidently market your products, knowing that your product claims are both accurate and legally sound.