When a sustainable standard-bearing brand says it’s environmentally friendly and is called out for taking shortcuts, a lawsuit isn’t too far behind.
That’s the scenario in the U.S. District Court for the Eastern District of Missouri on May 10, with a new lawsuit alleging Nike of “falsely and misleadingly markets” by claiming their products meet government sustainability standards and are environmentally friendly.
Companies that deceptively allege their products are sustainable are engaging in so-called “greenwashing”, the lawsuit alleges.
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According to the blog ClassAction.org citing the 47-page lawsuit, Nike has illegally attempted to capitalize on consumers’ preference for “green” products by falsely claiming that certain apparel is tagged with “sustainable” claims. Additionally, the apparel is marketed as supporting the retailer’s waste- and carbon-reducing “Move to Zero” initiative.
Instead, the lawsuit, filed by Maria Guadalupe Ellis, alleges Nike manufactured its products from non-biodegradable plastic-based materials.
“In fact, of the 2,452 Nike “Sustainability” Collection Products, only 239 Products are actually made with any recycled materials,” the lawsuit stated. That’s a 90% non-compliance rate the lawsuit noted, adding that while Nike claims it makes its “Sustainability Collection” products with recycled fibers, the goods are manufactured using environmentally unfriendly synthetic materials.
The lawsuit also states that the actual act of selling products cited as eco-friendly is a violation of the Missouri Merchandising Practices Act. It also cites the Federal Trade Commission’s Green Guides, which lays out the standards to earn green-friendly status and what actions may be determined as deceptive advertising on corporate environmentally-friendly claims.
Those standards are only advisory, as they aren’t technically enforceable by the FTC, which could hinder the plaintiff’s case against Nike.
“It doesn’t mean that you can’t be found guilty of a claim, they just don’t have legal weight,” said John Conway, CEO of Astonish Media Group, in comments to Supply Chain Dive. “But it’s supposed to tell both consumers and the industry, ‘This is a line you can’t cross.”
Nike has yet to issue a response to the lawsuit. Its stock price is trading at $116.80 per share as of May 16.
