The Truth About Marketing Label Claims: What Brands Need to Know

Have you ever picked up a product labeled “100% Natural”, “Non-Toxic”, or “Eco-Friendly” and wondered—what does that actually mean?

In today’s marketplace, sustainability sells. Consumers are increasingly drawn to products with green claims, but not all claims are regulated, verified, or even truthful. While some brands follow strict certification processes, others use vague or misleading language to appeal to eco-conscious buyers—a practice known as greenwashing.

For brands in private label manufacturing and co-packing, it’s crucial to understand:

• What label claims are legally regulated?
• What certifications give your product credibility?
• What are the risks of using misleading claims?

Table of Contents

• Common Green & Eco-Friendly Claims
• Which Claims Are Regulated vs. Unregulated?
• Certifications That Add Credibility
• The Risks of Greenwashing & Legal Consequences
• Best Practices for Ethical & Effective Label Claims
• Key Takeaways

Common Green & Eco-Friendly Claims

Many brands use marketing buzzwords to signal environmental responsibility, but some terms are more meaningful than others. Here are a few commonly used claims:

✅ “All-Natural” / “100% Natural”

Meaning: Implies the product is made solely from natural sources with no synthetic additives.

Regulation: Not strictly regulated by the FDA or FTC.

Risk: Without clear standards, brands can face lawsuits if their “natural” claims are misleading.

✅ “Non-Toxic”

Meaning: Suggests the product is safe and free from harmful chemicals.

Regulation: The EPA regulates “non-toxic” for pesticides, but for most consumer products, it’s unregulated.

Risk: Unless backed by third-party testing, the claim can be challenged.

✅ “Biodegradable”

Meaning: The product breaks down naturally without harming the environment.

Regulation: FTC Green Guides require proof that the entire product decomposes in a reasonable timeframe.

Risk: Without third-party certification, brands risk greenwashing claims.

Which Claims Are Regulated vs. Unregulated?

Not all marketing claims are legally defined. Here’s a breakdown of which claims have regulations and which don’t:

Certifications That Add Credibility

• 🌿 USDA Organic – Applies to food, personal care, and textiles.
• 🔬 EPA Safer Choice – Ensures safety for human health and the environment.
• ♻️ Green Seal – Validates sustainable sourcing and reduced toxicity.
• 🐰 Leaping Bunny – Ensures no animal testing.
• 🌱 USDA BioPreferred – Certifies biobased products.

The Risks of Greenwashing & Legal Consequences

Many brands unknowingly make misleading claims—leading to lawsuits, consumer backlash, and damaged trust.

🚨 Real-World Greenwashing Examples

• Huggies “Pure & Natural” (2011) – Faced lawsuits for misleading claims.
• Windex “Non-Toxic” Claim – Challenged for lack of third-party verification.
• Volkswagen’s “Clean Diesel” Scandal – Falsely claimed eco-friendliness while violating emissions laws.

Best Practices for Ethical & Effective Label Claims

• ✔ Be specific – Use “99% natural” instead of just “natural.”
• ✔ Use precise language – “Made with plant-sourced fibers” instead of “eco-friendly.”
• ✔ For "Made in the USA" claims, ensure 100% of components are sourced domestically or qualify with "Made in the USA with Global Materials."
• ✔ Follow FTC Green Guides for compliance.

Key Takeaways

• Transparency builds trust – Use clear and verifiable claims.
• Avoid vague claims – Words like “eco-friendly” and “biodegradable” need proof.
• Third-party certifications add credibility – Consider USDA Organic, EPA Safer Choice, or Green Seal.
• Stay compliant – Follow FTC Green Guides to avoid legal risks.

Additional Reading

• How to Start a Cleaning Product Line (Step-by-Step)

• What Is Packaging Compatibility Testing?

• The Pros and Cons of Using a Co-Packer vs. Manufacturing In-House

• 5 Mistakes to Avoid When Working With Co-Packers

• How to Private Label Car Care Products: A Complete Guide