Greenwashing Trends and Risks

Summary

This practice note provides an overview of cases and trends regarding "greenwashing," which occurs when companies misrepresent the environmental benefit of their products, services, or business. Companies, either in response to regulation requiring disclosure, or through their own affirmative efforts to market their products and services, are making detailed environmental and sustainability disclosures. In response, plaintiffs are alleging that certain such representations are "greenwashing," bringing a growing number of false advertising class action lawsuits against companies that they allege cannot substantiate their claims. In an era where regulators, investors, and consumers are focusing on more and better corporate Environmental, Social, and Corporate Governance (ESG) issues, courts will see more greenwashing claims and likely give them ever more serious consideration.