10/168 DECISION Chairman’s Ruling 6 April 2010 Complaint 10/168 Complainant: J. Taylor Advertisement: BrandWorld Limited Complaint: The Green One television advertisement begins with a title screen featuring the words “The Checkout”. A woman, Melanie Kerr, then introduced the product saying, “Check out The Green One. A range of eco-friendly strong high quality bags that are perfect for the home, office or garden.” A checklist box featured the text: “NZ Made - Oxo-Biodegradeable - Contains recycled plastic thegreenone.co.nz” The woman then said, “They are New Zealand made and being oxobiodegradeable, makes them a better environmental choice.” Text said “At leading supermarkets and retailers nationwide”, as Melanie concluded, “The Green One, it’s plastic with a difference” Complainant, J. Taylor, was of the view that the advertisement breached the Code for Environmental Claims it was likely to mislead the consumer with regard to the environmental benefits of the bags when deposited in a landfill. The relevant provisions were Basic Principles 1, 2, 3 and 3 (a), (b) and (c) of the Code for Environmental Claims. The Chairman noted the concern raised about the advertisement by Complainant, J. Taylor. However, in her view the claim “New Zealand made and being oxobiodegradeable, makes them a better environmental choice.” was not an absolute claim about “performance in a landfill environment” but a claim which highlighted that the product was “plastic with a difference” from other similar type plastic bags. The advertisement also said that the product “Contains recycled plastic”, another product difference. Having made these observations, the Chairman was of the view that the advertisement did not contain misleading claims about the product’s potential superior biodegradability as suggested by the Complainant, and there was no apparent breach of the Code for Environmental Claims. Accordingly, the Chairman ruled that there were no grounds to proceed. Chairman’s Ruling: Complaint No Grounds to Proceed 2 10/168 DECISION Meeting 10 August 2010 Complaint 10/168 Appeal 10/020 Complainant: J. Taylor Advertisement: BrandWorld Limited Applicant: Kensington Swan for J. Taylor Complaint: The Green One television advertisement begins with a title screen featuring the words “The Checkout”. A presenter, Melanie Kerr, then introduced the product saying, “Check out The Green One. A range of eco-friendly strong high quality bags that are perfect for the home, office or garden.” A checklist box featured the text: “NZ Made - Oxo-Biodegradeable - Contains recycled plastic thegreenone.co.nz”. Melanie Kerr then said, “They are New Zealand made and being oxo-biodegradeable, makes them a better environmental choice.” Text said “At leading supermarkets and retailers nationwide”, as Melanie concluded, “The Green One, its plastic with a difference” Complainant, J. Taylor, said: “Type: Television Where: first viewed on the morning of Tuesday 9th march at approx 10:30 am on TV1 with numerous repeats since Who: GreenOne Product: Range of "OXO-Biodegradable" rubbish bags Complaint To whom it may concern Whilst watching Television I have begun to see an advertising campaign for the "GreenOne" range of "degradable" rubbish bags. I first saw this on the morning of Tuesday the 9th March at approximately 1030am on TVland have seen a number of times since 3 10/168 I believe that this add breached the ASA Code for Environmental claims. I believe that this advert breaches Point 1 regarding generalized environmental claims listed on the ASA website under the code for environmental claims as noted in Item 2 below. I believe that it breaches Point 2 on the ASA website as noted in Item 3 Below. I also believe that breached Point 3 on the ASA website as also noted in Item 3. 1)This product requires Oxygen, Heat and Uv Light for degradation to occur. As these elements are absent in landfill environments the bag will not degrade. Whilst there are environments in which the plastic may degrade I believe that it is misleading to label the bag as degradable when by nature and essence the bag is destined for landfill and therefore an environment where it will not degrade. It is a well-documented fact, confirmed by New Zealand and International university experts that Oxygen and UV Light absent in landfills other than on the direct surface. 2)This advertisement clams that the product is better for the environment than normal plastic bags. When in landfill environments there will be no difference between this plastic bag containing a "degradable" additive and other plastics containing no additive, neither will degrade and both are considered by experts to be inert. In open environments where Oxygen, Heat and UV Light are readily available these bags will degrade and in the process release C02 gas 3)To date the manufacturer has been unable to product no third party, independent field-testing that the product will perform as stated in landfill environments. There are no ASTM or ISO proven standards to officially recognized tests to prove that this product performs as stated in landfill environments. I believe that the add misleads people by making them believe that they rubbish bag will OXO-Biodegrade in a landfill because by nature an essence a rubbish bag has the purpose of going to a landfill.” The Chairman ruled the following provisions were relevant: Code for Environmental Claims. Basic Principle 1 Generalised claims for environmental benefit must be assessed on the complete life-cycle of the product and its packaging taking into account any effects on the environment of its manufacture, distribution, use, disposal, etc. Thus absolute claims for environmental benefit, either stated or implied, are not appropriate. eg "Environmentally friendly" "Environmentally safe" "Environmentally kind" "Product X has no effect on the environment" "100% ecologically sound" are absolute claims and therefore not acceptable. Basic Principle 2 Qualified claims such as "environmentally friendlier/safer/kinder" may be acceptable where the advertised product, service or company can demonstrate a significant environmental advantage over its competitors or a 4 10/168 significant improvement on its previous formulation, components, packaging, method of manufacture or operation. Basic Principle 3 All claims must: a. be able to be substantiated, and b. meet relevant local or international standards as appropriate if a particular benefit is claimed (eg "biodegradable", "organic" etc), and c. explain clearly the nature of the benefit, eg "our product X is kinder to Mother Nature" is unclear and thus unacceptable but "our CFC-free product X is kinder to the ozone layer" would be acceptable. The Chairman ruled that there were no grounds to proceed on 6 April 2010. Legal Counsel, Kensington Swan, on behalf of the Complainant, J. Taylor, lodged an application for appeal and said: “1.1 We act for J. Taylor and refer to your letter dated 30 April 2010 addressed to our client and a recent telephone conversation between you and our client. 1.2 The purpose of this letter is to appeal the decision communicated in the letter dated 30 April 2008 whereby the Chairman of the Advertising Standard Authority (‘ASA’) concluded that the Green-One television Advertisement (‘Advertisement’) did not breach the Code for Environmental Claims (‘CEC’). 1.3 The appeal is based on the three grounds, specified below, by which it is proposed that the Advertisement breaches either the Advertising Code of Ethics (‘ACE’) or the CEC. 2 Breach of ACE Rule 2 2.1 ACE Rule 2 states: Advertisements should not contain any statement or visual presentation or create an overall impression which directly or by implication, omission, ambiguity or exaggerated claim is misleading or deceptive, is likely to be deceptive or mislead the consumer, makes false and misleading representation, abuses the trust of the consumer or exploits his/her lack of experience or knowledge. 2.2 The Advertisement creates an overall impression that is likely to deceive or mislead the consumer. 2.3 The overall impression created by the Advertisement is that a consumer purchasing the plastic bags is being cleaner and greener and is ultimately benefiting the environment by doing so. The overall impression is created by the following: a The name of the product "Green-One"; 5 10/168 b The use of the term "eco-friendly"; c The use of the term "oxo-biodegradeable"; d The statement: "New Zealand made and being oxo-biodegradeable, makes them a better environmental choice"; and e The use of the slogan "Made in New Zealand exclusively for the environment". 2.4 Our client instructs us that the Advertisement deceives and misleads the consumer as there is no proof available that purchasing a Green-One is environmentally better than purchasing an ordinary plastic bag. 2.5 The Advertisement separates the product from the conditions that would be required for it to degrade as suggested. Our client informs us that the research regarding Oxo-biodegradeablity suggests that in order for the bags to degrade that oxygen, UV light, and heat need to be present. As the majority of all plastic bags end up in landfill, often all three of these factors are not present and thus will not allow the plastic bag to breakdown. 3 3.1 Omission of Critical Information We are informed by our client that the Advertisement highlights the fact that the bags contain a degradable additive. It omits to inform the consumer of the requirements for the degradable additive to perform as alluded to. The Advertisement gives the impression that the bags will degrade when disposed of, when in actual fact the environment in which the bags end up will not be conducive to degradation as neither sufficient oxygen or UV light will be present. 4 Breach of CEC Basic Principle 3 4.1 Basic Principle 3 states: All claims must be able to be substantiated 4.2 The claims of degradability, that the product is 'eco-friendly', and that the product is a 'better environmental choice' are unable to be substantiated. 4.3 We are instructed by our client that there have been no tests performed, to an acceptable internationally recognised industry (ISO, ASTM) standard that show the product will work at all as per the overall impression given by the Advertisement. The evidence to the contrary supports the conclusion that the bags will not degrade because there is a lack of oxygen in a landfill where they will invariably end up. We attach a copy of a study performed by the University of California that attests to this fact. 4.4 The item being advertised is a plastic rubbish bag; it is being advertised as having an environmental benefit over other bags through the inclusion of a degradable additive. It is impossible to separate the features of the bag, in this instance a claimed degradability from the fact that by nature the bag will 6 10/168 end up in landfill where degradation may not occur. 4.5 We request on behalf of our client that you review your decision regarding the Advertisement as it is likely to mislead and contains claims that are unable to be substantiated. 4.6 If you have any questions or require any further information please do not hesitate to contact me.” On July 1, the Chairperson of the Appeal Board ruled to accept the Appeal and refer the complaint to the Advertising Standards Complaints Board. His Ruling said in part: “The Code for Environmental Claims Basic Principle 1 requires claims for environmental benefit to be assessed on the complete life cycle of the product including disposal. The performance of the bag in a landfill environment is therefore a matter which should be considered in the context of a claim that it is oxo-biodegradeable and whether the claim is an absolute one. While this was addressed by the Chairman it is properly a matter for a decision by the Complaints Board.” The Advertiser, Pacrite Industries Limited, in response to the Appeal said: “Thank you for your letter dated July 08 2010, received July 09 2010 advising us of the Appeal Ruling. We do not believe our advertisement has breached any of the Environmental Claims codes listed and we were extremely conscious of the Green Marketing Guidelines when creating our advertisement. We enlisted the help of Republik to guide us through the advertisement creation, and chose a format which would allow a lot of information to be conveyed to the consumer. Like all plastic products created, the intention is that they will be disposed of correctly i.e. to landfill or recycling facility, controlled, managed environments. As we and consumers know, this is not always the case, otherwise we wouldn't have plastic in our natural environment such as the' Pacific Ocean Garbage Patch'. When plastic is released into the environment accidentally it is very difficult to control and manage. Oxo-Biodegradable additives are able to manage the issue of plastic waste in our environment. To make the assumption that every rubbish bag produced will make its way to landfill and not end up accidentally in our natural environment in our opinion, could be considered environmental negligence as a plastic bag manufacturer. Oxo-Biodegradable additives are an affordable insurance for keeping our natural environment free of plastic waste. How can one argue that this is not a benefit to the environment? In addition to this we incorporate recycled plastic into the bags, print them using water based inks and manufacture them locally in New Zealand. We have presented the bags as being a better environmental choice to consumers because we strongly believe they are. This technology is demanded globally by 7 10/168 consumers and businesses as everyone is becoming more aware of the impact plastic can have on our environment. As stated in the initial ruling dated 6 April 2010, we made no absolute claims about the performance of the bags in a landfill environment. This is not to say our bags cannot degrade in a landfill environment. Due to the various types of landfill setups, the point at which the landfill becomes air locked and has zero oxygen levels is variable. Our bags have been laboratory tested and shown to begin fragmenting after approximately 16 months at 20° C. It is very likely a bag may be manufactured, stored (both in our warehouse and retailer warehouses), and merchandised on a store shelf for many months before making their way into the home of a consumer. By the time a consumer has used the product and it has been sent to landfill, the process could well be underway. There is no scientific evidence specific to New Zealand landfill environments known to us, nor presented by the complainant which would suggest there is absolutely no possibility our product would have the opportunity to continue the Oxobiodegradation process for many more months before becoming completely void of oxygen. Oxo-Biodegradable plastics offer consumers a level of certainty that our product will not be floating in our oceans, blocking waterways, neither clinging to fences nor blowing along our beaches in years to come. Like most waste that goes into a landfill, even organic products such as leaves and twigs would struggle to degrade once deep down and air locked. Our product, unlike other waste will not release methane gas once oxygen is completely removed. I have attached information published by the Oxo-Biodegradable Plastics Association which responds to a paper released in the USA by the Flexible Packaging Association. The response states that although ideally plastic waste should be collected for recycling and Incineration, this is not always a reality in our waste collection system. As quoted in this response issued by the Oxo-Biodegradable Plastics Association "should it be disposed of responsibly by consumers and sent to landfill, it will degrade in the upper layers where oxygen is present, and will not emit methane deeper in the landfill, unlike paper or compostable plastic". At the conclusion of the advertisement we have our website address. If consumers visit the website they will be led to this website www.biodeg.org which explains oxobiodegradable technology in great detail. We are aiding consumers in finding out everything they would like to know about this technology, so they can see the science behind it and how it works. We direct them to this third party information resource as it is consistently updated and has a lot of information. Given that it is a third party resource, our customers can be assured we are not manipulating the scientific data in an effort to mislead. In addition to this, we have been informed, that an employee bearing the same name and residential address as the complainant works for one of the largest rubbish bag distributors in New Zealand. This company is also represented by Kensington Swan, 8 10/168 who were the lawyers appointed to appeal the initial decision made by the Chairperson. Although this may be a coincidence, we cannot help but feel this is merely an attempt to disrupt our business activities and is a negative way in which to conduct business. I trust the information I have provided is able to assist the Complaints Board in their decision. If you have any questions or require any further information, please do not hesitate to contact me.” The Production Company, Brandworld, said: Many thanks for forwarding correspondence from J. Taylor re his Appeal of the Green One Television Advertisement. Brand World were the production company who produced this TVC working with the client's advertising agency Republik. Pacrite Industries have advised that they are in discussions with J. Taylor's company via lawyers on a number of issues. His company are in fact their major competitor. The information J.Taylor has supplied relates to the code for this product type in Canada and America which is totally different to the European Code and view for these products. Pacrite Industries have advised that they will reply to the complaint themselves. I can advise that this campaign concluded on April 10th 2010 and there are no plans to repeat it.” Commercial Approvals Bureau (CAB), on behalf of the Media, said: “We have been asked to respond to this complaint under the following codes: Code for Environmental Claims - Basic Principles 1, 2, 3, 3(a), 3(b), 3(c) A successful appeal has been made by J. Taylor with regards to a Checkout commercial for The Green One rubbish bags. The appeal has been accepted on the grounds that: New evidence of sufficient substance has been found. Evidence provided to the Complaints Board has been misinterpreted. The Chairman's ruling was against the weight of evidence. The weight of the decision seems to be predicated on a single feature of the rubbish bags - their oxo-biodegradability. This weighting carries an inherent, though unintended, bias as it excludes the other features of the product's manufacture which contribute to the effect of consumer take-out e.g. the incorporation of recycled plastics and the use of water-based inks as opposed to solvent-based inks. 9 10/168 The situation above demonstrates a general trend in analysing complaints based on material and put forward by the complainant, rather than an analytical review of the commercial itself. After all, it is the commercial which is the chief article of evidence - all other correspondence, from either party, seeks to either support or debase its claims. CAB's position in reviewing commercials is to form an overall assessment of the advertiser's claims as they appear in that commercial. Where the commercial describes The Green One rubbish bags as 'eco-friendly' we surmise that the claim is presented not as an absolute, but as a qualified comparative descriptor predicated on the extra-normal performance of the product across its life-cycle. [ref. Basic Principle 1] CAB considers that the qualified, non-absolute claim above is adequately qualified by presenting the description of the product's properties and components i.e. it's oxobiodegradability and it's use of recycled plastics. In fact, the use of recycled plastics alone would be enough to qualify the product's advantage over the majority of competitors - a rubbish bag using recycled plastics is more environmentally friendly than a bag that does not (ref. Basic Principle 2). The benefits of adding oxodegradable catalytic agents place this product even further ahead of its competititors, if only by virtue of potential. [ref. Basic Principle 2] CAB confidently asserts that all the claims in the commercial are able to be substantiated. The 'eco-friendly' claim is substantiated by the oxo-biodegradability and recycled content of the product. These are respectively substantiated by an analysis of the materials used in the product's manufacture - namely oxo-degradation catalysts (metals which react in the presence of oxygen) and recycled raw plastic mass. [ref. Basic Principle 3(a)] CAB considers that detailing these properties and components in itself constitutes a clear and understandable explanation of the products benefits [ref. Basic Principle 3(c)] If there are any applicable international or national standards that the product must reach in order to be fit for sale, the complainant has failed to name any. Consequently CAB wonders why Basic Principle 3(b) has been applied; the complainant's vague allusion to ISO and ASTM are intentionally vague and immaterial. CAB asks members of the Board to carefully consider the material facts of this case and avoid losing perspective in a mass of semi-relevant detail brought forward by the complainant. In the interests of natural justice, it is the impression of the general audience which should inform the Board's decision, and not the undisclosed interests of a sole complainant.” The Complainant, J. Taylor, provided additional reference material to the Complaints Board. The Advertiser, Pacrite Industries Ltd, further responded: “Thank you for your letter dated July 28 2010. Unfortunately the information was sent to Republik, our advertising agency as opposed to my office, which has delayed my response. I hope you are still able to take this information into consideration when making the final decision. 10 10/168 The new information' provided is in fact argumentative material from websites operated by lobby groups, two of which (Canadian Plastics Industry Association and the Plastics Industry Trade Association of America) represent the North American plastics industry who are naturally opposed to manufacturers of biodegradable or oxo-biodegradable products, because they are competitors. The ASA should pay no attention to this material whatsoever because it is unreliable. Pacrite has made a qualified claim (“a better environmental choice"), not an absolute claim, and falls within principle 2 of the Code. Pacrite can show that its product does have a significant environmental advantage over ordinary plastic bags because: its bags are manufactured with recycled plastics; printed using water based inks and its bags are oxo-biodegradable. The bags may not degrade in certain conditions within landfill but they do degrade in, e.g., rivers and the ocean. The claims Pacrite has made are accurate and can be substantiated. It has used recycled plastic. The bags are made in New Zealand. The bags are printed with water based inks. The bags are oxo-biodegradable. A claim that a bag is oxo-biodegradable is not a claim that it will degrade in all conditions; the very term 'axe-biodegradable' implies that oxygen must be present in order for the bag to degrade. The requirement in principle 3(a) is that the claim be able to be substantiated, which it can be, It is not a requirement that the advertiser have expert reports prepared for this purpose at the time the ad is run. The complainant has not identified any applicable local or international standard which the product fails to meet (principle 3(b)). I trust the information I have provided is able to assist the Complaints Board in their decision. If you have any questions or require any further information, please do not hesitate to contact me.” Deliberation The Complaints Board read all the relevant correspondence and supporting information and viewed a copy of the advertisement. It noted that the Complainant, J.Taylor, challenged the claims made in the advertisement. The Chairman directed the Complaints Board to consider the complaint with reference to the Code for Environmental Claims, Basic Principles 1, 2 and 3 and Guidelines 3(a), 3(b) and 3(c). These principles restrict the use of absolute claims for environmental benefit, require claims to be substantiated and to explain the nature of any benefit claimed. The Complaints Board first considered the use of the term “eco-friendly” in relation to Basic Principle 1 of the Code for Environmental Claims. The Complaints Board noted the term “eco-friendly” was very similar to those listed in the Code as absolute 11 10/168 claims which are not appropriate in this type of advertising. The Complaints Board noted that while the bags being promoted in the advertisement had a number of features that may be considered to be friendlier to the environment, taking into account the complete life –cycle of the product, this did not justify the use of the term “eco-friendly” under Basic Principle 1 of the Code for Environmental Claims. Accordingly, the Complaints Board ruled to uphold the Complaint in relation to the use of the term “eco-friendly”. Turning to the other statements made in the advertisement and the overall consumer take-out, the Complaints Board noted the following: The product used recycled plastic; The product used water based not solvent based inks; It was made in New Zealand; and It contained oxo-biodegradable additives to assist with the breaking down process. The Complaints Board noted the advertisement offered an alternative plastic rubbish bag product which the Advertiser promoted as a “better environmental choice”. In the Complaints Board view, the remainder of the claims in the advertisement and the overall consumer take out were not in breach of Basic Principles 2 and 3 of the Code for Environmental Claims. In addition, the Complaints Board considered that adequate substantiation had been provided and that the nature of the benefit of the product, as identified by the Advertiser, was clear. Therefore, the advertisement was not in breach of Guidelines (a) and (c) of the Code for Environment Claims. The Complaints Board did not consider there was any material in the advertisement relating to Guideline (b) of Basic Principle 3 and it did not consider the complaint under this Guideline. In summary, the complaint was not upheld under Basic Principle 2 and 3 and Guidelines (a) and (c). The complaint was upheld under Basic Principle 1 in relation to the use of the term “eco-friendly”. Decision: Complaint Upheld (in Part)
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