AJPark

A recent trend in the cosmetics and toiletry industry is the use of eco-friendly or ethical claims, commonly in relation to packaging, or natural and organic ingredients.  These claims are a powerful marketing tool, targeted at the increasing number of “green” New Zealanders. 

However, all branding and advertising for your products, including “green” marketing, should be done with care, and any claims you make must be sound and substantiated.  Making claims that are misleading is not only bad business practice, but could also have serious legal consequences.

How to avoid getting it wrong

All cosmetic advertising must comply with legislation.  The most relevant is the Fair Trading Act 1986 (FTA) which protects consumers from misleading and deceptive products and services. 

Also applicable to cosmetic advertising are the Advertising Standards Authority Advertising Codes which set out advertising standards for all media in New Zealand.  There are also a number of other laws and codes that may impact on advertising cosmetics in New Zealand. 

If your claims are found to breach the FTA, you could face a fine of up to $60,000 (for an individual) and $200,000 (for a company).  You can also incur further losses through withdrawal of advertising or refusal by media to run advertising. 

And of course, in addition to these immediate financial penalties are the potentially disastrous consequences from the loss of your business’ reputation and credibility.

Examples:

• In the UK, Avon advertised that its Anew Clinical Advanced Dermabrasion System could make lines vanish and deliver a long lasting physical change.  But the Advertising Standards Authority held that these claims were unsubstantiated after an expert found that Avon’s clinical trails were not performed effectively.
• Also in the UK, RoC were forced to withdraw advertising for its Complete Lift cream because it was found to be misleading.  RoC had claimed that the cream would give women younger-looking skin.

How to get it right

Make sure your products fit the descriptions used in your advertising, labelling and packaging, and all claims of endorsement, performance, or benefits are substantiated.

Specifically, you need to make sure that:

• your claimed benefits are real ones.  For example, a claimed eco benefit that also applies to all products of that type in the market, is not a real benefit
• your claims are clear, accurate, and specific- general or vague statements can lead to trouble
• your claims are audience appropriate, and free of technical jargon- don’t assume that your audience has particular knowledge
• you avoid half truths
• you do not use pictures that are misleading.  Pictures should not be used if they imply your products have particular characteristics, when they do not.

Claims based on research or surveys must not be distorted to appear more favourable.  Any data you use must:

• be based on actual research
• outline the nature of the research.  For example, is it a sample of consumers or a clinical trial?
• be independent
• be representative of the overall results
• be publicly available for supply on request.

Also, make sure that the overall impression you create is not misleading.  Brands using words or logos that imply certain benefits, or uses, can be deceptive if you cannot substantiate them.

And while the public may accept some exaggeration or “puffery” in advertising, make sure that it is clearly recognisable as puffery, and that consumers do not rely on it.

Green guidelines

The Commerce Commission released a set of guidelines late last year to help those using green marketing comply with the Fair Trading Act.

Things to look out for in your green marketing include:

• unqualified claims like “safe”, “friendly”, and “green”
• eco claims you can’t substantiate
• imagery that paints a greener picture than your carefully chosen words.

The Commerce Commission’s guidelines can be found at www.comcom.govt.nz.

An edited version of this article was publsihed in FMCG, May 2009.

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  Sooyun Lee

  Executive